Shareholders of a corporation that had been dissolved for failure to pay franchise taxes can be held personally liable on contracts entered into by the dissolved entity even if the corporate status is eventually reinstated, a New York court ruled (Worldcom Inc. v. Sandoval, N.Y. Sup. Ct., N.Y. Cnty).
In an opinion by Justice Herman Cahn, the court reached back to 1941 to find a New York case on point, concluding that corporate officers are personally liable despite reinstatement of the dissolved corporation.
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