Business legal services in Silicon Valley

Business Dissolution May Not Be Bad News in California

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Sales & Dissolutions on Tuesday, December 10, 2013.

Usually, when a business shuts down it is bad news for the company, its owners and its executives. This generally means that the business did not produce enough profit to survive in California or in any other state. However, one company’s recent business dissolution announcement is actually being received as good news by many in the company as well as the company’s business partners.

The company, American Car Care Centers Inc. (ACCC), is one of the largest groups in North America that is designed to serve the interests of tire dealers. The company recently announced that it will dissolve the business organization by the end of Jan. 2014. The marketing organization represents 16 tire dealer companies, which are also considered shareholders in the corporate entity.

ACCC stated that changes in industry dynamics prompted the board of directors to dissolve the company. However, the company’s President and CEO explains that the decision to end the business is a sign of success. He said that the decision to dissolve is based upon member distributors outgrowing the organization’s structure. Therefore, the member distributors have benefited from being involved in the organization, which means the ACCC succeeded in its mission.

On the other hand, companies in California or in any other state which decide to initiate business dissolution usually do so because they were not able to turn their struggling businesses around for one reason or another. Many times this is caused by drastic changes in the economy which may be out of the hands of the business owners. However, this also does not have to be bad news since this will allow the business owner to move on to the next chapter in his or her life.

Source: Tire Business, ACCC to dissolve; group’s member distributors ‘outgrow’ structure, Dave Zielasko, Dec. 6, 2013


Related Post

Why Might a Business Incorporate in Delaware Instead of California?

12/10/13

Classified Board of Directors Many of the largest public companies in the world are incorporated in Delaware. California business owners ask me whether they should incorporate in Delaware when choosing a state of

LEARN MORE >

Navigating California’s Work Breaks and Overtime Laws

12/10/13

California’s work breaks and overtime laws regularly confuse companies that do business in California. Understanding your obligations to provide rest and meal periods to employees is critical to the operation of a

LEARN MORE >

Three Things You Must Know When Starting a Home Health Agency

12/10/13

Home health agencies have revolutionized elder care options, permitting many older adults to live in their own homes longer than before. These agencies are responsible for placing health care professionals - registe

LEARN MORE >

© 2019 THE LAW OFFICE OF LYNNETTE ARIATHURAI            SITEMAP               DISCLAIMER

Serving Businesses and Start Ups in the Greater Bay Area including Fremont, Hayward, Union City, Castro Valley, Milpitas, and Newark, CA.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship.