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HomeCorporations CodeCh. 17§ 6720 Corporate Post-Dissolution Rights

§ 6720 Corporate Post-Dissolution Rights

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 6720 Corporate Post-Dissolution Rights

Key Takeaways

  • •Even if a company shuts down, it still exists to finish up its business, like paying debts or selling stuff.
  • •If the company was in a lawsuit before shutting down, the lawsuit doesn’t just disappear—it keeps going.
  • •If the company forgot to include some money or property when shutting down, it still belongs to the people who should get it.

Example

A toy company goes out of business but still owes money to the store that sold its toys.

Even though the company is closed, it can still pay back the store and sell any leftover toys to get the money.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 6720 Corporate Post-Dissolution Rights

(a) A corporation which is dissolved nevertheless continues to exist for the purpose of winding up its affairs, prosecuting and defending actions by or against it and enabling it to collect and discharge obligations, dispose of and convey its property and collect and divide its assets, but not for the purpose of continuing its activities except so far as necessary for the winding up thereof. (b) No action or proceeding to which a corporation is a party abates by the dissolution of the corporation or by reason of proceedings for winding up and dissolution thereof. (c) Any assets inadvertently or otherwise omitted from the winding up continue in the dissolved corporation for the benefit of the persons entitled thereto upon dissolution of the corporation and on realization shall be distributed accordingly. (Added by Stats. 1978, Ch. 567.)

Last verified: January 23, 2026

Key Terms

dissolved corporationwinding upprosecuting and defending actionscollect and discharge obligationsdispose of and convey its propertyassets omitteddistributed accordingly

Related Statutes

  • § 12661 Corporate Dissolution Winding Up
  • § 8722 Corporate Dissolution Winding Up
  • § 2010 Corporate Dissolution Winding Up
  • § 12653 Distribution Of Corporate Assets
  • § 12662 Enforcing Claims Against Dissolved Corporations

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 6720.
View Official Source