Learn About the Law
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Current as of January 01, 2022 | Updated by FindLaw Staff
§ 112.50. Grounds for judicial dissolution. A Circuit Court may dissolve a corporation:
(a) In an action by the Attorney General, if it is established that:
(1) the corporation filed its articles of incorporation through fraud;
(2) the corporation has continued to exceed or abuse the authority conferred upon it by law, or has continued to violate the law, after notice of the same has been given to such corporation, either personally or by registered mail;
(3) any interrogatory propounded by the Secretary of State to the corporation, its officers or directors, as provided in this Act, has been answered falsely or has not been answered fully within 30 days after the mailing of such interrogatories by the Secretary of State or within such extension of time as shall have been authorized by the Secretary of State;
(4) the corporation has solicited money and failed to use the money for the purpose which it was solicited, or has fraudulently solicited money or fraudulently used the money solicited; or
(5) the corporation has substantially and willfully violated the provisions of the Consumer Fraud and Deceptive Business Practices Act. 1
(b) In an action by a member entitled to vote, or a director, if it is established that:
(1) the directors are deadlocked, whether because of even division in the number thereof or because of greater than majority voting requirements in the articles of incorporation or the bylaws, in the management of the corporate affairs; the members are unable to break the deadlock; and irreparable injury to the corporation is thereby caused or threatened;
(2) the directors or those in control of the corporation have acted, are acting, or will act in a manner that is illegal, oppressive or fraudulent;
(3) the corporate assets are being misapplied or wasted; or
(4) the corporation is unable to carry out its purposes.
(c) In an action by a creditor, if it is established that:
(1) the creditor's claim has been reduced to judgment, the judgment has been returned unsatisfied, and the corporation is insolvent; or
(2) the corporation has admitted in writing that the creditor's claim is due and owing, and the corporation is insolvent.
(d) In an action by the corporation to dissolve under court supervision, if it is established that the corporation is unable to carry out its purposes.
Cite this article: FindLaw.com - Illinois Statutes Chapter 805. Business Organizations § 105/112.50. Grounds for judicial dissolution - last updated January 01, 2022 | https://codes.findlaw.com/il/chapter-805-business-organizations/il-st-sect-805-105-112-50/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Search our directory by legal issue
Enter information in one or both fields (Required)