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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 101382
Experience:  Lawyer
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If a Canadian corporation is involuntarily dissolved due to

Customer Question

If a Canadian corporation is involuntarily dissolved due to non-compliance under the Canada Corporations Act, and prior to involuntary dissolution, judgments were in place against the Corporation, what happens to the judgment debts?
JA: Because laws vary from place to place, can you tell me what state this is in?
Customer: Sorry - didn't realize you were in the US - it involves Canadian corporations
JA: Has anything been filed or reported?
Customer: Involuntary dissolution was on internet search -
JA: Anything else you want the lawyer to know before I connect you?
Customer: Can he comment on involuntary dissolutions by Canadian or Ontario governments on Canadian corporations
Submitted: 10 months ago.
Category: Canada Law
Expert:  Debra replied 10 months ago.

Hello! My name is***** you for your question. I'm reviewing it now, and will post back again shortly.

Customer: replied 10 months ago.
Expert:  Debra replied 10 months ago.

Did the corporation still have assets when it was dissolved and what happened to them?

Customer: replied 10 months ago.
Expert:  Debra replied 10 months ago.

The Judgment can still be enforced if there are assets as they must be somewhere.

If there are assets and they have been transferred to another corporation then that transfer could be set aside and in fact the directors could then be personally liable.

What you can do is subpoena the directors of that corporation to attend court for a cross-examination and ask them about the assets.

If they fail to attend the court will order a bench warrant for their arrest.

Does that help as a starting point?

If you let me know the level of court I may be able to find you a good document to read about this enforcement process.

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

Customer: replied 10 months ago.
Would there be director liability if the corporation was involuntarily dissolved with existing judgments?
Expert:  Debra replied 10 months ago.

It really depends on what happened to the assets if any.

If there aren't any then the director didn't harm anyone by not dealing with the corporation.

But if they took assets or transferred them then the could be personally liable.

Expert:  Debra replied 9 months ago.

Is there anything more I can help you with at this point in time?