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271B.14-320 Receivership or custodianship.
(1)
(2)
(3)
(4)
(5)
A court in a judicial proceeding brought to dissolve a corporation may appoint
one (1) or more receivers to wind up and liquidate, or one (1) or more
custodians to manage, the business and affairs of the corporation. The court
shall hold a hearing, after notifying all parties to the proceeding and any
interested persons designated by the court, before appointing a receiver or
custodian. The court appointing a receiver or custodian shall have exclusive
jurisdiction over the corporation and all of its property wherever located.
The court may appoint an individual or a domestic or foreign corporation
(authorized to transact business in this state) as a receiver or custodian. The
court may require the receiver or custodian to post bond, with or without
sureties, in an amount the court directs.
The court shall describe the powers and duties of the receiver or custodian in
its appointing order, which may be amended from time to time. Among other
powers:
(a) The receiver:
1.
May dispose of all or any part of the assets of the corporation
wherever located, at a public or private sale, if authorized by the
court; and
2.
May sue and defend in his own name as receiver of the corporation
in all courts of this state; and
(b) The custodian may exercise all of the powers of the corporation, through
or in place of its board of directors or officers, to the extent necessary to
manage the affairs of the corporation in the best interests of its
shareholders and creditors.
The court during a receivership may redesignate the receiver a custodian, and
during a custodianship may redesignate the custodian a receiver, if doing so is
in the best interests of the corporation, its shareholders, and creditors.
The court from time to time during the receivership or custodianship may order
compensation paid and expense disbursements or reimbursements made to
the receiver or custodian and his counsel from the assets of the corporation or
proceeds from the sale of assets.
Effective:January 1, 1989
History: Created 1988 Ky. Acts ch. 23, sec. 150, effective January 1, 1989.
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