US Laws, Codes, Statutes & Cases

 
  § 114. Visitation of supreme court.
    Type  B  and  Type  C  corporations,  whether  formed under general or
  special laws, with their books and vouchers, shall  be  subject  to  the
  visitation  and  inspection of a justice of the supreme court, or of any
  person appointed by the court for that purpose.   If it appears  by  the
  verified  petition of a member or creditor of any such corporation, that
  it, or its directors, officers or agents, have  misappropriated  any  of
  the  funds  or  property  of  the corporation, or diverted them from the
  purpose of its incorporation,  or  that  the  corporation  has  acquired
  property  in excess of the amount which it is authorized by law to hold,
  or has engaged in any business other than that stated in its certificate
  of incorporation, the court may order that  notice  of  at  least  eight
  days,  with a copy of the petition, be served on the corporation and the
  persons charged with misconduct, requiring them to show cause at a  time
  and place specified, why they should not be required to make and file an
  inventory  and  account of the property, effects and liabilities of such
  corporation with a detailed statement of  its  transactions  during  the
  twelve months next preceding the granting of such order.  On the hearing
  of  such  application,  the  court  may  make  an  order  requiring such
  inventory, account and statement to be filed, and proceed  to  take  and
  state  an account of the property and liabilities of the corporation, or
  may appoint a referee for that purpose.  When such account is taken  and
  stated,  after hearing all the parties to the application, the court may
  enter a final order determining the amount of property so  held  by  the
  corporation,  its annual income, whether any of the property or funds of
  the corporation have been  misappropriated  or  diverted  to  any  other
  purpose  than  that  for  which  such  corporation was incorporated, and
  whether such corporation has been engaged in any activity not covered by
  its certificate of incorporation.  An appeal may be taken from the order
  by any party aggrieved to the appellate division of the  supreme  court,
  and to the court of appeals, as in a civil action.  No corporation shall
  be  required to make and file more than one inventory and account in any
  one year, nor to make a second account and inventory, while  proceedings
  are pending for the statement of an account under this section.