Legal Question in Business Law in Illinois

Re: Commercial Lease Termination

A dissolved corporation is still liable for its obligations (including contractual obligations), to the extent of its assets. A lessor is a creditor, like many other possible types of creditors.

If the the assets of the dissolved corporation are distributed to the shareholders rather than used to satisfy the corporation's debts, the shareholders are personally responsible to the extent that of those distributions.

Obviously, if there was a guarantor on the lease, the dissolution of the corporation does not release the guarantor (unless the guaranty was very poorly drafted).

David K. Staub, an Illinois business lawyer