When businesses in Ohio are looking at potentially dissolving, there will be quite a few issues to address before the company is finally shuttered for good. Along the way, each step might lead to the potential for litigation.
One of the most common causes for litigation is the decision about whether to dissolve the business in the first place. The bigger the company, the bigger the complications in getting to a place where everyone with a hand in running the company agrees – or a majority anyways.
For example, some members of a board of directors or executive team might see a path forward for the company, while others may want to “close up shop.” Disagreement at this step is ripe for business litigation.
And then, of course, come the many steps after the decision to dissolve the business is made. For example, all appropriate documentation and fees must be filed with the state, and bylaws and articles of incorporation must be followed in terms of how assets and accounts are dissolved – and how they are distributed.
Yet again, this is another step in the process where business litigation could occur. This is particularly true if there are shareholders involved, who may get a vote on dissolving and distributing assets.
Large or small, businesses in Ohio should be prepared for the potential challenges that come with dissolving a business. Getting the right legal information about everything that needs to be done, and how best to avoid litigation along the way, is crucial.