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Shareholder Disputes – Part I: Voluntary Dissolution of a California Corporation

By Blog, Business Law

Disputes among shareholders are common. While there may be shared objectives at the time a business incorporates, changes in the shareholders’ respective long and short term goals can change over time leading to disagreements. When this occurs, if the parties are not able to negotiate a satisfactory resolution, California corporations’ law provides certain legal mechanisms allowing or forcing the corporation to dissolve and liquidate. Using these mechanisms can involve a number of strategic implications. This is the first in a series of blogs that will summarize the general principles of voluntary and involuntary dissolution and statutory buy-out procedures.

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