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271B.14-320 Receivership or custodianship.
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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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