Section 29 Generally

• Library: Bus Trans 2005

Generally, the practical disadvantages of a liquidation of the corporation followed by a sale of assets by the shareholders will outweigh any potential advantages. Initially, there are the practical problems associated with transferring assets to the shareholders and then retransferring those assets to the purchaser. A great deal of inconvenience, documentation, and expense may result from the conveyances, transfer taxes, title insurance concerns, assumption of liabilities, and other issues.

A corporate liquidation could, however, accommodate the shareholders’ desire to receive a portion of...