Coalinga, CA asked in Business Law, Tax Law and Gov & Administrative Law for California

Q: Can a labor union continue collecting dues when it is suspended, and unable to legally conduct business?

Labor union, a non-profit, was suspended in California by the FTB, from October 2018 to May 2019. During this time they continued collecting dues without informing members of suspension status. Union was reinstated, or revived, in May 2019. Was this legal? Are dues collected during this time refundable to members?

1 Lawyer Answer
David Ostrove
David Ostrove
  • Tax Law Lawyer
  • Los Angeles, CA
  • Licensed in California

A: A suspended corporation cannot conduct business in California. Such corporation has lost all of its right to conduct business during suspension Once reinstated, it may again conduct business.

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