California | Business Law
Legal Question
Non-qualifying Foreign Corporations
As Non-Qualifying Foreign Corporations, i.e., those that have failed to comply with Cal. Corp. Code Section 2105, may have their corporate powers suspended or forfeited for non-payment of franchise taxes; it is my understanding that one of these powers they forfeit is vodiable contracts that were entered into during the period of suspension or forfeiture. Is the ''period'' of forfeiture defined as the time after a formal judgment/claim has been made by the Secretary of State? Or can any contracts that were entered into with a Non-Qualifying Foreign Corporation, be considered void, even if during the time when they have not been formally served a judgment? In other words, if said corporation is found to be non-qualified to conduct business in California.... subsequent to certain contracts they've entered into, is it possible to contend that those contracts are thus void, since the corporation had forfeited it's corporate powers, even if not formally served or judged at that time?
Thank you for any information offered.
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