Arkansas Supreme Court Holds Reinstatement of Corporation Applies Retroactively
The Arkansas Supreme Court affirmed a denial of a motion to dismiss based on revocation of corporate charter in Omni Holding and Development Corp. v. C.A.G. Investments, Inc., No. 06-1136 (6/7/07).
C.A.G. Investments filed suit against Omni Holding claiming that Omni held real property owned by C.A.G. Prior to the suit, C.A.G.'s corporate charter was revoked. However, C.A.G. was reinstated after the lawsuit had been filed. Omni moved to dismiss, arguing that C.A.G. lacked standing to sue because its charter was revoked.
This was the supreme court's first opportunity to examine the new reinstatement statute, which provides that "Reinstatement shall be retroactive to the time that the corporations authority to do business in the state was declared forfeited." See A.C.A. § 26-54-112(a)(1)(A)(ii). The court determined that reinstatement granted C.A.G. continuous existence as though the revocation had never occurred.
