The chief executive officer of Invigor Consulting, Dr. Deirdre Gillespie has overseen the dissolution of numerous public companies. Throughout her career, Dr. Deirdre Gillespie has negotiated settlements with 100 percent of her clients’ creditors (more than 250) for less money than they were owed, which mitigated liability and kept the client from filing for bankruptcy.
Dissolving a company is an important and often difficult decision made by its owners. However, it can provide some benefits, such as halting the growth of debt. Nevertheless, shutting down a company requires the proprietors to take several steps in sequence. Before beginning the process, it is important to check the laws of the state of the company’s incorporation or of its principal place of business for any specific requirements that must be met.
Initially, the owners of a company must vote to shut down the business. Corporations generally detail how many votes are needed to close itself down in its bylaws or other documents, but states also have regulations for entities that fail to set their own policies. Subsequently, the company must file the dissolution paperwork with the state; these documents can usually be found on the secretary of state’s website. Any permits, licenses, or out-of-state registrations must also be canceled.
After dissolution begins, the corporation must tell other parties, including its employees, its customers, and utility providers. The business must also inform its creditors about this change of circumstance because it puts them on notice that the company can no longer incur debt. Without this knowledge, creditors may continue providing supplies or money and can sue for a greater repayment amount.