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HomeCorporations CodeCh. 18§ 1801 Corporate Dissolution Grounds

§ 1801 Corporate Dissolution Grounds

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1801 Corporate Dissolution Grounds

This law lets the Attorney General shut down a company if it breaks serious rules, like not paying taxes for 5 years or doing illegal stuff. They have to warn the company first and give them 30 days to fix it.

Key Takeaways

  • •The Attorney General can sue to shut down a company for breaking big rules.
  • •The company gets 30 days to fix problems after a warning.
  • •If the company doesn’t fix things, a court can close it down.

Example

A company stops paying taxes for 5 years in a row.

The Attorney General can sue to shut down the company if they don’t pay what they owe.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 1801 Corporate Dissolution Grounds

(a) The Attorney General may bring an action against any domestic corporation or purported domestic corporation in the name of the people of this state, upon the Attorney General’s own information or upon complaint of a private party, to procure a judgment dissolving the corporation and annulling, vacating or forfeiting its corporate existence upon any of the following grounds: (1) The corporation has seriously offended against any provision of the statutes regulating corporations. (2) The corporation has fraudulently abused or usurped corporate privileges or powers. (3) The corporation has violated any provision of law by any act or default which under the law is a ground for forfeiture of corporate existence. (4) The corporation has failed to pay to the Franchise Tax Board for a period of five years any tax imposed upon it by the Bank and Corporation Tax Law. (b) If the ground of the action is a matter or act which the corporation has done or omitted to do that can be corrected by amendment of its articles or by other corporate action, such suit shall not be maintained unless (1) the Attorney General, at least 30 days prior to the institution of suit, has given the corporation written notice of the matter or act done or omitted to be done and (2) the corporation has failed to institute proceedings to correct it within the 30-day period or thereafter fails to prosecute such proceedings. (c) In any such action the court may order dissolution or such other or partial relief as it deems just and expedient. The court also may appoint a receiver for winding up the affairs of the corporation or may order that the corporation be wound up by its board subject to the supervision of the court. (d) Service of process on the corporation may be made pursuant to Chapter 17 or by written notice to the president or secretary of the corporation at the address indicated in the corporation’s last tax return filed pursuant to the Bank and Corporation Tax Law. The Attorney General shall also publish one time in a newspaper of general circulation in the proper county a notice to the shareholders of the corporation. (Added by Stats. 1975, Ch. 682.)

Last verified: January 10, 2026

Key Terms

corporationdissolutionjudgmentfraudportsecretarythe attorney generalexistence

Related Statutes

  • § 1800 Corporate Involuntary Dissolution
  • § 1502.1 Auditor Disclosure Requirements
  • § 2117.1 Foreign Corporation Auditor Disclosure
  • § 12670 Delinquent Corporation Certification
  • § 1806 Corporate Winding Up Claims

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 1801.
View Official Source