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Loren
Loren, Attorney
Category: Business Law
Satisfied Customers: 29816
Experience:  30 years experience representing clients .
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If a small incorporated business closes while there is a lawsuit

Customer Question

If a small incorporated business closes while there is a lawsuit pending that is related to a laid off employee what happens to the suit?
Submitted: 5 years ago.
Category: Business Law
Expert:  Loren replied 5 years ago.
A corporation must wind up its activities before dissolution. A judge would permit the lawsuit to continue and the directors could be liable for damages if they distribute assets without concluding the existing lawsuit.

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