Name a situation where a corporation can face involuntary dissolution.

Study for the Revised Corporation Code test. Prepare with comprehensive multiple-choice questions and detailed explanations. Boost your knowledge and confidence for your exam day!

A corporation can face involuntary dissolution when it fails to comply with mandatory regulations and provisions of the law. This situation arises because compliance with legal requirements is fundamental to maintaining a corporation’s legitimacy and functioning. Various laws and regulations govern corporate conduct, including filing annual reports, maintaining certain financial standards, and adhering to operational guidelines. When a corporation neglects these responsibilities, it can lead to legal consequences, such as dissolution, as the state may step in to protect public interest and enforce compliance.

The other options describe scenarios that typically do not lead to involuntary dissolution. Corporate restructuring and requests from minority shareholders can be part of strategic business decisions that are handled without terminating the corporation. Additionally, increased profitability is generally a positive outcome and does not result in dissolution unless accompanied by illegal activities or failure to comply with legal obligations.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy