New York business laws address the dissolution of a corporation where a shareholder (petitioner) is seeking an adversarial termination of corporate existence. The purpose of the law is to ensure that a petitioner's shares are appropriately assessed, that he or she receives a fair market value that the ownership interest represents. The mechanism and the corporate judicial dissolution surety bond are explained in BSC Article 11.
Pursuant to the 2015 statute, "a shareholder or a corporation may, at any time within ninety days after the filing of a petition for dissolution and/or share purchase, elect to purchase the shares owned by the petitioners at their fair value and upon such terms and conditions as may be approved by the court. If one or more shareholders or the corporation elect to purchase the shares owned by the petitioner but are unable to agree with the petitioner upon the fair value of such shares, the court, upon the application of a prospective purchaser or the petitioner, may stay the proceedings brought pursuant to law and determine the fair value of the petitioner's shares as of the day prior to the date on which the petition was filed. The court then may in its discretion require at any time prior to the actual purchase of shares, the posting of a judicial dissolution bond to secure petitioner for the fair value of his shares.
A judicial dissolution bond under New York Business Law is not common. The surety bond must be issued by a surety company licensed in the State of New York and specifically qualified to guarantee court obligations. Quoting a judicial bond is accomplished by a surety bond underwriter with knowledge of the applicable corporate laws. Surety One, Inc. specializes in surety bonds for federal, state and local trial courts and courts of appeals. Application submissions are reviewed and responded to within one hour of receipt. We are the most agile bond underwriter in the United States. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for a live chat with an underwriter for further information or to discuss your judicial dissolution bond or other litigation surety need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.