What is the Dissolution of a Corporation?
When Can a Corporation Dissolve?
Why do Corporations Dissolve?
How to Dissolve a Corporation
- Start liquidating assets before applying for dissolution.
In this case, after a resolution to dissolve has been passed by shareholders, or each class of shareholders, the corporation distributes the property and discharges liabilities according to the Articles and Canada Business Corporation Act. It may then apply for a Certificate of Dissolution by first submitting a signed copy of Articles of Dissolution to the government.
- Alternatively, you can start dissolving your corporation before liquidating all your assets.
Under this course of action, the corporation must apply for a Certificate of Intent to Dissolve by first submitting a Statement of Intent to Dissolve to the government. The Certificate of Intent to Dissolve gives notice to creditors and the public that the corporation is no longer carrying on business. At this time, the corporation must disperse remaining assets among shareholders according to the Canada Business Corporation Act, and once liquidation is done, it can apply for a Certificate of Dissolution to complete the dissolution process.