judicial dissolution

The termination of a corporation's existence handled by the courts located within the state of the company's incorporation. A dissolution may be obtained when the attorney general of the state of the incorporation petitions for it due to a company's failure to comply with regulations of tax laws, administration or statutory regulations. A shareholder may also file a petition for dissolution based on a deadlock situation between the directors when the shareholders can not break the deadlock. Abuse of power, fraudulent activities, and other illegal acts may also result in a petition being filed by shareholders for dissolution.