(1) A court in a judicial proceeding to dissolve a nonprofit corporation may appoint one or more receivers to wind up and liquidate, or one or more custodians to manage, the affairs of the nonprofit corporation. The court shall hold a hearing, after giving notice to 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 has exclusive jurisdiction over the nonprofit corporation and all of its property, wherever located.
The court may appoint an individual, a domestic entity, or a foreign entity authorizedto transact business or conduct activities in this state, or a domestic or foreign nonprofit corporation authorized to transact business or conduct activities 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 stated by the court.
The court shall describe the powers and duties of the receiver or custodian in itsappointing order which may be amended from time to time. Among other powers the receiver shall have the power to:
Dispose of all or any part of the property of the nonprofit corporation, whereverlocated, at a public or private sale, if authorized by the court; and
Sue and defend in the receiver's own name as receiver of the nonprofit corporation inall courts.
The custodian may exercise all of the powers of the nonprofit corporation, through orin place of its board of directors or officers, to the extent necessary to manage the affairs of the nonprofit corporation in the best interests of its members and creditors.
The court, during a receivership, may redesignate the receiver a custodian and duringa custodianship may redesignate the custodian a receiver if doing so is in the best interests of the nonprofit corporation and its members 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 such person's counsel from the assets of the nonprofit corporation or proceeds from the sale of the assets.
Source: L. 97: Entire article added, p. 730, § 3, effective July 1, 1998. L. 2003: (2) amended, p. 2349, § 329, effective July 1, 2004. L. 2004: (1) amended, p. 1515, § 309, effective July 1.