California Corporate & Securities Law

In 1995, Panrox International (USA), Inc. recorded a deed of trust on a home in Los Angeles to secure an indebtedness of $141,000. On January 2, 2001, the State of California suspended Panrox for failure to pay taxes. Panrox remained suspended for...

California pressures corporations to pay their taxes by suspending their corporate powers, rights and privileges when they fail to do so.  Cal. Rev. & Tax Code § 23301.  Consequently a suspended corporation may not litigate.  Welco Constr., Inc. v....

When a corporation or limited liability company fails to pay its taxes, penalties, fees or interest or file a return with the Franchise Tax Board, it will be suspended. If the suspended corporation or LLC enters into a contract while suspended by...

Under the California General Corporation Law a corporation which is dissolved nevertheless continues to exist for the purpose, among others, of prosecuting actions. Cal. Corp. Code § 2010(a). Further, no action to which a dissolved corporation is a...

Wanke Industrial, Commercial, Residential, Inc. v. AV Builder Corp., 2020 Cal. App. LEXIS 134, involved a judgment creditor's attempt to enforce its judgment against its judgment debtor's debtor. On appeal, the debtor's debtor argued that the...

California Code of Civil Procedure Section 367 requires that every action must be prosecuted in the name of the real party of interest. What happens when a plaintiff sues under a fictitious business name of a dissolved foreign limited liability...