A corporation whose corporate powers have been suspended or forfeited is without capacity to prosecute or defend against a suit until revivor of its powers by the appropriate statutory procedure ( Rev. & Tax. Code §§ 23305 - 23305d). During the period of the suspension or forfeiture of its corporate powers, a corporation may neither prosecute nor defend an action. The assignee of a suspended corporation is also subject to the corporation's disability to prosecute an action. Therefore, prior to commencing a lawsuit, make sure that your corporation (or limited liability company) is in good standing with the Secretary of State's office. If your corporation has been suspended, it is of utmost importance that you revive it prior to initiating a lawsuit otherwise your action may be met with a motion for summary judgment, or an application for an early judgment in favor of the party you are suing.
California Business and Estate Planning Attorney San Ramon, Contra Costa County
At Santaella Legal Group, APC, our legal team is experienced in handling legal matters. We can carefully evaluate your situation. We suggest you take advantage of our low, flat-fee consultation where you can get answers to your questions. Please don't hesitate to contact a San Ramon, Contra Costa business and estate planning, probate or bankruptcy attorney at our firm by calling (888) 698-3951, or you can fill out our online case evaluation form.