Legal Definitions - certificate of dissolution

Definition: A certificate of dissolution is an official document issued by a state authority, usually the secretary of state, that confirms the dissolution of a corporation.

Example: When a corporation decides to close its business, it must file a certificate of dissolution with the state where it was incorporated. The certificate of dissolution confirms that the corporation has fulfilled all its legal obligations and is no longer in existence.

Another example: ABC Inc. has been struggling financially for years and has decided to shut down its operations. The board of directors of ABC Inc. passes a resolution to dissolve the corporation and files a certificate of dissolution with the state. The state issues a certificate of dissolution, which confirms that ABC Inc. is no longer a legal entity.

The examples illustrate that a certificate of dissolution is a legal document that confirms the dissolution of a corporation. It is an important step in the process of closing a business and ensures that the corporation has fulfilled all its legal obligations before ceasing operations.