Corporations – Dissolution – Effect on Federal Criminal Prosecution Against Corporation
Defendant corporation was prosecuted along with its officers .and employees for submitting false statements on FHA insured loans and for conspiracy. After return of indictment the corporation was voluntarily dissolved under Texas law. The corporation’s motion to dismiss the indictment on the ground that dissolution abated the prosecution was overruled. On appeal, held, affirmed. Article 1388 of the Texas civil statutes which constitutes the president and directors trustees “to settle the affairs” of a dissolved corporation and to “maintain or defend judicial proceedings,” continues the corporation in existence for the purpose of defending federal criminal proceedings. Alamo Fence Company of Houston v. United States, (5th Cir. 1957) 240 F. (2d) 179.