Dissolution is the “death” of a company. Generally, there are two ways an Illinois company (corporation, LLC or partnership) can be dissolved: voluntarily, by vote of its owners (shareholders, members or partners) or involuntarily, by an owner seeking to dissolve the company by filing a lawsuit (or petition) to dissolve. The primary focus of the Illinois Business Divorce Report is involuntary dissolution. The statutory grounds for involuntary dissolution vary depending on the kind of entity. The statutes for judicial dissolution of:
- a closely held Illinois corporation begin at 805 ILCS 5/12.56;
- an Illinois LLC begin at 805 ILCS 180/35-1(4); and
- an Illinois partnership begin at 805 ILCS 206/801(5).
Future posts will explore the grounds for involuntary dissolution. (This is for informational purposes only and is not legal advice.)