Court Opinion

ID: 9709208
Source: CourtListenerOpinion
Date Created: 2023-08-26 03:42:48.096613+00
Date Added: 2024-06-11T18:22:47.044604
License: Public Domain

KIRSCH, Judge,
concurring in result.
"Dissolution of a corporation does not ... transfer title to the corporation's property." I.C. 28-1-45-5(b) (emphasis added). This provision applies to voluntary dissolutions and to administrative dissolutions effected under LC. 28-1-46-2. These statutory provisions set forth the procedures for dissolution and the winding up of corporate affairs. They exist to protect shareholders, taxing authorities and creditors. Requiring adherence to these provisions does not exalt form over substance. Allowing the plaintiffs to sue in their individual names for collection of what is a corporate asset without compliance with statutory dissolution procedures would *887allow the evasion of these statutory protections.
$o. , , Here, the plaintiffs allege in their amended complaint that they undertook certain winding up procedures and that as a part of such procedures the promissory note here at issue was "surrendered" to the plaintiffs. Record, p. 22. Such an allegation is sufficient to withstand a motion to dismiss. At trial, the plaintiffs will have the burden to prove a proper transfer of the promissory note from the corporation to themselves personally.