§ 6616 Corporate Termination And Winding Up

Corporations Code·California

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Key Takeaways

•If a company's set time to exist runs out and isn't extended, it has to stop working.
•The company's leaders must finish up all the company's business.
•Once everything is done, most of the leaders must sign and send a paper saying the company is closed.

Example

A small toy company was created to run for 10 years. After 10 years, the owners didn't renew the company's time.

The company must stop making and selling toys. The owners have to finish all the company's work, like paying bills and selling leftover toys. When everything is done, most of the owners must sign and send a paper to say the company is officially closed.

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

Official Source

View on CA.gov

§ 6616 Corporate Termination And Winding Up

Except as otherwise provided by law, if the term of existence for which any corporation was organized expires without renewal or extension thereof, the board shall terminate its activities and wind up its affairs; and when the affairs of the corporation have been wound up a majority of the directors shall execute and file a certificate conforming to the requirements of Section 6615. (Added by Stats. 1978, Ch. 567.)

Last verified: January 23, 2026

Key Terms

term of existence renewal or extension wind up its affairs certificate Section 6615

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 6616.

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Example

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References

Key Takeaways

Example

Key Terms

Related Statutes

References