Corporate Status Reinstatement
A business entity may be obliged to take on the reinstatement procedure when it has lost its good standing or if it has been dissolved because of failure to fulfill statutory or legal formalities. The reinstatement process requires an inactive or voided business entity to furnish a reinstatement application and other required forms and fees to the government, such as a tax clearance letter. If the required forms and fees are not filed within a stipulated time, the entity will be administratively dissolved or their status will be officially revoked. Once a reinstatement application is filed, it relates back to and takes effect as of the effectual date of the revocation or dissolution, as if the revocation or dissolution never occurred.
Corporate entities that decide to close down their business are mandated to furnish a request for termination and articles of dissolution to the state authority. After filing the articles of dissolution, the entity commences the winding up procedure. A corporate entity ceases to exist only after the secretary of state delivers a certificate of termination.
Corporate charter suspension or revocation of the articles of incorporation by the secretary of state makes the officers and the directors personally liable. However, reinstating a revoked business permits you to recover the advantages and benefits of both the limited liability protection and corporate status that comes with it. But unlike with corporations, a charter suspension does not affect personal liability of the members or managers of other business entities like partnerships and proprietary concerns.
- Churches - Excommunication or revocation from a church can be followed by reinstatement if the excluded person expresses true repentance and perform requirements specified by the church.
- Motor Vehicles Departments - In a majority of cases, a driving license is suspended or revoked for not paying the license fee. If a driving license is suspended for not paying license fee, you can reinstate your license by paying necessary fees and a fine to the state authority.
- Banks - A bank may close accounts of a customer with an inactive status or with a large overdraft. The customer can lift the restrictions and reinstate the accounts to be current and in good standing by paying the overdraft or depositing funds to the account. On the whole, an entity to be restored or reinstated should confirm that the circumstances which caused the status to be annulled have been remedied.