(805 ILCS 5/12.50) (from Ch. 32, par. 12.50)
Sec. 12.50. Grounds for judicial dissolution in actions by nonshareholders.
(a) A Circuit Court may dissolve a corporation:
(1) In an action by the Attorney General, if it is
established that:
(i) The corporation filed its articles of
incorporation through fraud; or
(ii) 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; or
(iii) 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.
(2) In an action by a creditor, if it is established
that:
(i) The creditor's claim has been reduced to
judgment, a copy of the judgment has been returned unsatisfied, and the corporation is insolvent; or
(ii) The corporation has admitted in writing that
the creditor's claim is due and owing, and the corporation is insolvent.
(3) In an action by the corporation to dissolve under
court supervision, if it is established that dissolution is reasonably necessary because the business of the corporation can no longer be conducted to the general advantage of its shareholders.
(b) As an alternative to dissolution, the court may order any of the other remedies contained in subsection (b) of Section 12.55.
(Source: P.A. 96-66, eff. 1-1-10.)
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Last modified: February 18, 2015