Arkansas § 4-33-1430 Grounds for judicial dissolution

Arkansas Statutes

§ 4-33-1430 — Grounds for judicial dissolution

(a)The circuit court may dissolve a corporation:

(1)in a proceeding by the attorney general if it is established that:

(i)the corporation obtained its articles of incorporation through fraud;

(ii)the corporation has continued to exceed or abuse the authority conferred upon it by law; or (iii) the corporation is a public benefit corporation and the corporate assets are being fraudulently misapplied or wasted.

(2)except as provided in the articles or bylaws of a religious corporation, in a proceeding by fifty (50) members or members holding five percent (5%) of the voting power, whichever is less, or by a director or any person specified in the articles, if it is established that:

(i)the directors are deadlocked in the management of the corporate affairs, and the members, if any, are u

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(a) The circuit court may dissolve a corporation: (1) in a proceeding by the attorney general if it is established that: (i) the corporation obtained its articles of incorporation through fraud; (ii) the corporation has continued to exceed or abuse the authority conferred upon it by law; or (iii) the corporation is a public benefit corporation and the corporate assets are being fraudulently misapplied or wasted. (2) except as provided in the articles or bylaws of a religious corporation, in a proceeding by fifty (50) members or members holding five percent (5%) of the voting power, whichever is less, or by a director or any person specified in the articles, if it is established that: (i) the directors are deadlocked in the management of the corporate affairs, and the members, if any, are unable to breach the deadlock; (ii) the directors or those in control of the corporation have acted, are acting or will act in a manner that is illegal or fraudulent; (iii) the members are deadlocked in voting power and have failed, for a period that includes at least two (2) consecutive annual meeting dates, to elect successors to directors whose terms have, or would otherwise have, expired; or (iv) the corporate assets are being fraudulently misapplied or wasted. (3) in a proceeding by a creditor if it is established that: (i) the creditor's claim has been reduced to judgment, the execution on the judgment returned unsatisfied and the corporation is insolvent; or (ii) the corporation has admitted in writing that the creditor's claim is due and owing and the corporation is insolvent. (4) in a proceeding by the corporation to have its voluntary dissolution continued under court supervision. (b) Prior to dissolving a corporation, the court shall consider whether: (1) there are reasonable alternatives to dissolution; (2) dissolution is in the public interest, if the corporation is a public benefit corporation; and (3) dissolution is the best way of protecting the interests of members, if the corporation is a mutual benefit corporation.

Arkansas § 4-33-1430 (Grounds for judicial dissolution) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.