This section is from the book "Business Finance", by William Henry Lough. Also available from Amazon: Business Finance, A Practical Study of Financial Management in Private Business Concerns.
Dissolutions are not always due to insolvency, but may come as the result of pressure of other kinds or as the result of a conviction on the part of a majority of the shareholders that the corporation, while not actually insolvent or losing money, is nevertheless making an unprofitable use of the capital invested and is actually tending to deteriorate. Under these conditions, it may often be the part of wisdom to bring about a dissolution while the company still possesses a valuable surplus. A number of special cases of partial dissolution - which might also be described as a partial distribution of assets - have arisen in the United States recently, due to decrees of the courts requiring "combinations in restraint of trade" to resolve themselves into their constituent elements. The practical application of these decrees has in many cases involved peculiar difficulties.