Legal Question in Business Law in New York

dissolved corporation liability

NY business (corp.) was closed 4/08; dissolved 11/08 with no assets. NY Compensation board has assessed a penalty d/t 3 weeks of no coverage. Had made payment in good faith, for coverage, but was still fined as coverage could not be provided for that short period, even though I was told to send in a check. I was given incorrect information. We were fined a penalty. They are now threatening to go after individual corporate officers. Can they do this? Are we liable for payment even though the corp. has been dissolved, with no assets?


Asked on 12/29/08, 7:08 pm

1 Answer from Attorneys
John Friedman Law Office of John K. Friedman

Re: dissolved corporation liability

Yes, unfortunately, they can. These type of obligations -- often grouped together as "trust fund" liabilities -- are finally the obligation of the "control" person(s).

You should consult an attorney on this as the fines can be steep and the power of the state great.

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Answered on 12/30/08, 10:35 am


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