Which of the Following Is NOT a Basis for Involuntary

question 3

Multiple Choice

Which of the following is NOT a basis for involuntary dissolution?

• A)A proceeding by the secretary of state, if it is established that the corporation failed to pay its franchise tax.
• B)The directors are deadlocked and the shareholders cannot break the deadlock.
• C)The shareholders dissent to a merger and are asserting their appraisal rights.
• D)None of the above.

---

Definitions:

Corporate Officers

Individuals appointed to manage the daily operations of a corporation, such as CEOs, CFOs, and COOs, who have specific legal responsibilities.

Articles of Incorporation

A document filed with a governmental body to legally document the creation of a corporation, detailing its structure, purpose, and compliance with state laws.

Memorandum of Association

A legal document required for the formation of a company, outlining its constitution and permitted activities.

Non-Special Act Corporation

A corporation that operates under general corporate laws rather than being governed by laws enacted for a specific type of business or purpose.