Legal Question in Business Law in California
Wholly Owned Subsidiaries
What does one own when they own an interest in a wholly owned subsidiary and the wholly owned subsidiary is dissolved without compensating the owner of the interest? Do they own an interest in the parent company? Is there an action for fraud in the inducement? Breech of contract?
2 Answers from Attorneys
Re: Wholly Owned Subsidiaries
That is going to depend on what exactly you owned before and after the dissolution. Was it a corporation, a sole proprietorship, or something else? A lawyer would want to see all the documentation to see what exactly your interest was at the beginning, and what you agreed to in the dissolution. A lawyer would need a lot more background and the documentation to give you a precise answer. Please let me know if you would like me to help.
Re: Wholly Owned Subsidiaries
Your question is difficult to understand, since you don't specify what you think you owned before the dissolution. Saying you owned an "interest" suggests that you think you were a part-owner of the subsidiary, but if the subsidiary was "wholly-owned", as you say, then no one but the parent company had an ownership interest in it.
Can you clarify this a bit?
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