Final answer:
Judicial dissolution, or involuntary dissolution, is when courts order the termination of a business entity due to serious internal disputes or misconduct, and it relies on the principle of an independent judiciary to ensure fair and unbiased decision-making.
Step-by-step explanation:
Judicial dissolution, also referred to as involuntary dissolution, occurs when a court orders the termination of a corporation or partnership at the request of the shareholders or partners. This process typically arises when there is a deadlock in the management, allegations of fraud, a breach of fiduciary duties, or other substantial disagreements among the parties involved. Judicial dissolution is seen as a last resort and is different from voluntary dissolution, where the owners agree to cease operations.
Independent judiciary is crucial to this process as it ensures that courts and judges have the authority to interpret laws and make decisions without interference from other government branches. An independent judiciary can rule on cases and dissolve a corporation if deemed appropriate, reflecting separation of powers and upholding the rule of law. In the federal system, judges are appointed for life and make decisions that can be politically sensitive, such as striking down laws as unconstitutional or expanding individual rights, without direct influence from political entities or the electorate.