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HomeCorporations CodeCh. 17§ 8710 Corporate Dissolution Director Powers

§ 8710 Corporate Dissolution Director Powers

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

§ 8710 Corporate Dissolution Director Powers

Key Takeaways

  • •When a company is closing down, the bosses can still hire people to help finish up the company's work.
  • •They can keep running the company just enough to sell stuff, pay bills, and finish what they started.
  • •They can sell the company's things (like cars, computers, or buildings) to get money to pay off what the company owes.
  • •They can take people to court if they owe the company money, or defend the company if someone sues it.

Example

A small toy company is closing down because it ran out of money.

The bosses can still sell the leftover toys and use that money to pay the workers and bills. They can also take a store to court if it didn’t pay for the toys it bought. If someone sues the toy company, the bosses can hire a lawyer to defend it.

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

Official Source
View on CA.gov

§ 8710 Corporate Dissolution Director Powers

The powers and duties of the directors (or other persons appointed by the court pursuant to Section 8515) and officers after commencement of a dissolution proceeding include, but are not limited to, the following acts in the name and on behalf of the corporation: (a) To elect officers and to employ agents and attorneys to liquidate or wind up its affairs. (b) To continue the conduct of the affairs of the corporation insofar as necessary for the disposal or winding up thereof. (c) To carry out contracts and collect, pay, compromise and settle debts and claims for or against the corporation. (d) To defend suits brought against the corporation. (e) To sue, in the name of the corporation, for all sums due or owing to the corporation or to recover any of its property. (f) To collect any amounts remaining unpaid on memberships or to recover unlawful distributions. (g) To sell at public or private sale, exchange, convey or otherwise dispose of all or any part of the assets of the corporation for an amount deemed reasonable by the board without compliance with the provisions of Section 7911 and to execute bills of sale and deeds of conveyance in the name of the corporation. (h) In general, to make contracts and to do any and all things in the name of the corporation which may be proper or convenient for the purposes of winding up, settling and liquidating the affairs of the corporation. (Amended by Stats. 1979, Ch. 724.)

Last verified: January 23, 2026

Key Terms

dissolution proceedingliquidate or wind upSection 7911

Related Statutes

  • § 6710 Corporate Dissolution Director Powers
  • § 12650 Corporate Dissolution Powers
  • § 12651 Filling Board Vacancies
  • § 12652 Corporate Director Disputes Resolution
  • § 12653 Distribution Of Corporate Assets

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 8710.
View Official Source