Revival Rectifies Removal

California pressures corporations to pay their taxes by suspending their corporate powers, rights and privileges when they fail to do so.   Cal. Rev. & Tax Code § 23301.  Consequently a suspended corporation may not litigate.   Welco Constr., Inc. v. Modulux, Inc., 47 Cal. App. 3d 69, 71, 120 Cal. Rptr. 572 (1975).   
 

Suspension, however, is not the final word because a corporation can pay its taxes and then apply with the Franchise Tax Board for reinstatement. Cal. Rev. & Tax Code § 23305.  Assuming the corporation meets the applicable statutory requirements, the Franchise Tax Board issues a "certificate of revivor."  Id.  "Upon the issuance of the certificate [of revivor] by the Franchise Tax Board the taxpayer therein named shall become reinstated but the reinstatement shall be without prejudice to any action, defense or right which has accrued by reason of the original suspension or forfeiture . . . ."  Cal. Rev. & Tax Code § 23305a.