The State of California Franchise Tax Board nullified Fidelity National Title Company’s suspension and restored the corporation to good standing Thursday.
The State of California Franchise Tax Board originally suspended the company on Jan. 3, 2017 due to an unpaid balance going overdue.
According to the Sacramento Real Estate Lawyer Blog, a company can be suspended or forfeited by the Secretary of State or the Franchise Tax Board.
In the case of Fidelity National Title Company, the Franchise Tax Board fined the company. The blog explained that the FTB usually suspends a business either because the business failed to file one or more tax returns or the business failed to pay its balance.
While FNTC’s suspension is nullified currently, it was suspended for 16 days, which has the ability to severely impact business.
The blog stated, “During suspension, the business loses its rights, powers, and privileges to conduct business in California. The business also loses the right to use its business name in California. Fidelity National Title Company was not exempt from this impact."
As a result of the suspension, FundingShield, a financial technology firm focused on risk mitigation in mortgage closing protection letters, stated that a lot of its clients stopped funding loans through FNTC since FundingShield couldn’t certify.