Latin defunctus, from the past participle of defungi to finish, die, from de- + fungi to perform to more to the function If a business continues to operate illegally, it can become a defunct business when the local county, state, or federal government enters and closes the business. Ultimately, a business can be dissolved voluntarily or forcibly by a third party. When a company faces a suspension, it is still an entity. However, it cannot legally carry out its activities and its corporate powers are suspended until it requests a revival of the business. Once it has corrected its deficiency, it can be activated. If you know that de- often means “the opposite of”, it is easy to guess the meaning of deceased. Shakespeare seems to have been the first writer to use this adjective in Henry V. The defunct American political parties are the Greenback Party, the Readjuster Party, and the Nullifier Party. The categories of defunct Oscars include Best Dance Director and Best Assistant Director. Defunct American car models include the Dudly Bug, LuLu, Hupmobile, Gas-au-lec and Nu-Klea Starlite. But to speak of a person as dead would seem disrespectful – this is what emerges from E.
E. Cummings` famous poem “Buffalo Bill`s defunct”. If the suspended or dissolved company receives payments from customers, the checks must be paid into a business bank account. A debit cheque or OMAP can be made with the official. There is a difference between a suspended business and a business that no longer exists. A suspended corporation could be one of the following: Starting a business protects its officers and directors from personal liability. However, failure to maintain the corporation in good standing with the Office of the Secretary of State may result in personal liability for business owners who continue to operate under the name of the defunct corporation. A defunct business is a business that is no longer active or operational. The local or state government usually enforces the status of a defunct company, and it is a legally binding title. A defunct company can acquire this status in several ways. One of the most important ways to do this is by not filing the legal documents and documents that the company must file with its state.
For example, if the company is a business, the Secretary of State requires the company to file an annual return. If the company does not file an annual report and pays the fees that the state charges for the filing, the company goes into inactive status. Finally, according to a timetable set by the State, the status of inactive is transformed into a defunct company that is no longer able to operate in the State. Another way to label a business as defunct is when a government agency closes the business. For example, if a financial services company violates any of the laws of the Securities and Exchange Commission (SEC), the government can intervene and force the company to close its doors. Typically, this happens after repeated violations where the company has warned of its wrongdoing, fined it, and had the opportunity to correct its wrongdoing. A business can also be closed by its owners. The owners may decide that the business is no longer making an acceptable profit. While it is more intentional than violent for owners to decide to close the doors of the business, it is also a business that no longer exists – a business that is no longer in operation.
When a company declares bankruptcy, it is another route that usually leads to a defunct business. If the company declares bankruptcy, but then goes ahead and sells its products and services, the business is not dead. When the company declares bankruptcy and closes forever, it is defined as a defunct business. Unfortunately, a business may inadvertently overlook a government payment or tax return requirement. As a result, the corporation is dissolved by proclamation. Under state law, the legal entity of the corporation ceases to exist and it has no legal rights as a legal entity. The Company cannot defend any action you take against it in court as long as the suspension remains active. The only defence the corporation has is to tell the court that the debtors will return to the corporation and apply for an extension. As you can see, de facto refers to facts that apply for practical reasons, while de jure refers to the formal and official status of the case. If you need help with a dissolved company that is still in business, you can post your legal needs on the UpCounsel marketplace.