Grand Rapids, MI asked in Securities Law for Michigan

Q: Company responsibility to investors ???

If a company goes out of business before a product is ever sold, Is the money still left in the company account be returned to investors or can it be used by that company for other projects that were never discussed with investors.

Thank You for your Response

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1 Lawyer Answer

A: This question is not clear. If the company goes out of business, that implies it is no longer operating. Generally speaking, if it is dissolved, assets are used to pay creditors first and then owners.

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