Final answer:
Involuntary dissolution by the secretary of state due to non-compliance with legal requirements is known as Administrative Dissolution. This action suspends the corporation's legal abilities until the deficiencies are corrected and reinstatement is granted.
Step-by-step explanation:
Involuntary dissolution of a corporation that is ordered by the secretary of state if a corporation has failed to comply with certain procedures required by law is known as Administrative Dissolution. This process occurs when a company does not adhere to the administrative requirements, such as failing to file annual reports or pay taxes. The secretary of state has the authority to dissolve a corporation administratively if it does not correct the issue within a prescribed period after being notified of the noncompliance.
Once an administrative dissolution has been enacted, the corporation may lose its legal standing, which means it cannot legally conduct business, sue, or be sued under the corporate name. However, corporations usually have an opportunity to correct the cited deficiencies and apply for reinstatement to regain their good standing.