2006 Code of Virginia § 13.1-910 - Receivership or custodianship

13.1-910. Receivership or custodianship.

A. A court in a judicial proceeding brought to dissolve a corporation mayappoint one or more receivers to wind up and liquidate, or one or morecustodians to manage while the proceeding is pending, the business of thecorporation. The court shall hold a hearing, after notifying all parties tothe proceeding and any interested persons designated by the court, beforeappointing a receiver or custodian. The court appointing a receiver orcustodian has exclusive jurisdiction over the corporation and all itsproperty wherever located.

B. The court may appoint an individual, a domestic corporation or foreigncorporation, authorized to transact business in this Commonwealth, as areceiver or custodian. The court may require the receiver or custodian topost bond, with or without sureties, in an amount the court directs.

C. The court shall describe the powers and duties of the receiver orcustodian in its appointing order, which may be amended from time to time.Among other powers:

1. The receiver (i) may dispose of all or any part of the assets of thecorporation wherever located, at a public or private sale, if authorized bythe court, and (ii) may sue and defend in his own name as receiver of thecorporation in all courts of this Commonwealth;

2. The custodian may exercise all of the powers of the corporation, throughor in place of its board of directors or officers, to the extent necessary tomanage the business of the corporation in the best interests of its membersand creditors.

D. The court during a receivership may redesignate the receiver a custodian,and during a custodianship may redesignate the custodian a receiver, if doingso is in the best interests of the corporation, its members, and creditors.

E. The court from time to time during the receivership or custodianship mayorder compensation paid and expense disbursements or reimbursements made tothe receiver or custodian and his counsel from the assets of the corporationor proceeds from the sale of the assets.

(Code 1950, 13.1-258, 13.1-259; 1956, c. 428; 1985, c. 522.)