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Business Law, Radio/Media

What To Do If Inactive Company Gets Sued?

July 11, 2023 by Clay Williams, Tanvir Gill


Episode 61 of the Law Talk Podcast with Clay Williams and Tanvir Gill delves into whether you need to respond to a lawsuit if your company has ceased doing business. The short answer is, it depends, because every scenario is different but it is always best to bring it to your lawyer’s attention to go over the options.

Is allowing the “default judgment” by not responding to a lawsuit, a mistake? Can the judgment holder use the court process to examine a director of the assets?

Did you know that even when your company is dissolved and no longer incorporated on the corporate registry, a company still exists for the purposes of litigation; for two years after it’s dissolved?

If you have a company that you are dissolving or have dissolved and you’ve been served, or notice a civil claim has been filed, give us a call before you decide to do or not do anything!

As always, send your legal questions to podcast@fhplawyers.com.