Corporate
Feb. 26, 2013
Foreign corporations get better deal upon dissolution
At the end of the day Greb is unfavorable to California corporations, which can be sued without time constraint after dissolution, unlike corporations formed under the laws of another jurisdiction. By Dan Jacobson
Dan Jacobson
Attorney
Phone: (714) 505-4872
Email: dlj@jacobsonlawyers.com
Dan Jacobson is a practicing attorney in Tustin; a law professor-emeritus; a retired Governor of the California Insurance Guarantee Association, having been appointed to that position by Congressman John Garamendi, when Congressman Garamendi was California's Insurance Commission; and, a recently retired member of California's Board of Accountancy, having been appointed to that position by Assembly-Speaker Anthony Rendon.
Commonly, it is thought that the dissolution of a corporation is akin to the death of a human being. That thought is a mistake. "Under [California's] statutory scheme, the effect of dissolution is not so much a change in the corporation's status as a change in its permitted scope of activity.... Thus, a corporation's dissolution is best understood not as its death, but merely as its retirement from active business." Greb v...
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