Who would be in charge of the liquidation

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Reference no: EM131718740

Read the case and develop a strategy to answer the accompanying questions.

The hypothetical company, HPC Corporation, is having financial trouble. There is talk of dissolving the corporation because the last business venture they took part in turned out to be a huge flop and has left the company in financial ruin. Ultimately, the directors of HPC decide to initiate the proposal to dissolve and submit it to the shareholders for a vote. The shareholders were at first divided about whether they wanted to dissolve, but after a lot of lobbying, the shareholders unanimously voted to dissolve HPC. After the vote, the directors filed articles of dissolution with the secretary of state for the state of Delaware. The articles included the company name, the date of dissolution, and the method of authorization of dissolution. After the articles of dissolution were filed, the shareholders were again notified.

Has HPC covered the steps necessary for a voluntary termination? Also, explain how the process would differ if the termination was involuntary because the shareholders petitioned for dissolution because they believed the directors were abusing their power

1) Suppose that the corporation does not wish to dissolve voluntarily. Suppose instead that the shareholders petition the state to dissolve the corporation. Which of the following would be valid grounds for involuntary dissolution?

A. The directors have abused their power.

B. Two of the shareholders are upset with one of the directors.

C. The corporation failed to pay taxes within 30 days of the due date.

2) After dissolution has occurred, the ___________ stage of termination begins.

A. trustee

B. incorporation

C. liquidation

3) If the dissolution was involuntary, who would be in charge of the liquidation?

A. A trustee

B. A court-appointed receiver

C. The shareholders

Reference no: EM131718740

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