What is the process for dissolution of a corporation?
The process for dissolution of a corporation in Texas is outlined by the Texas Business Organizations Code (TBOC). First, the board of directors must approve a plan of dissolution, which states the purpose of the dissolution and how the corporation’s assets will be distributed. The board must then submit a certificate of dissolution with the Texas Secretary of State, which must state the final date of dissolution as approved by the board of directors. After this has been done, the corporation must cancel any permits, registrations, and licenses associated with it and notify all creditors, claimants, and regulatory agencies of its dissolution. Finally, the corporation must pay any outstanding debts or taxes and distribute the remaining assets to its shareholders in accordance with state law. Once all these steps have been completed, the corporation will no longer exist.
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