Colorado § 7-114-303 Receivership or custodianship

Colorado Statutes

§ 7-114-303 — Receivership or custodianship

Colorado·Title 07 Corporations·Art. Dissolution

(1)Unless an election to purchase has been filed under section 7-114-305, a court in a judicial proceeding to dissolve a corporation may appoint one or more receivers to wind up and liquidate, or one or more custodians to manage, the business and affairs of the 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 jurisdiction over the corporation and all of its property, wherever located.

(2)The court may appoint an individual, a domestic entity, or a foreign entity authorized to transact business or conduct activities in this state as a receiver or custodian. The court may require the receiv

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(1) Unless an election to
purchase has been filed under section 7-114-305, a court in a judicial proceeding to
dissolve a corporation may appoint one or more receivers to wind up and liquidate,
or one or more custodians to manage, the business and affairs of the 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 jurisdiction over the
corporation and all of its property, wherever located.

(2) The court may appoint an individual, a domestic entity, or a foreign entity
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 the court directs.

(3) 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:

(I) May dispose of all or any part of the property of the corporation wherever
located, at a public or private sale, if authorized by the court; and

(II) May sue and defend in the receiver's own name as receiver of the
corporation in all courts; or

(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.

(4) 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 and its shareholders and creditors.

(5) 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
corporation or proceeds from the sale of the assets.

Colorado § 7-114-303 (Receivership or custodianship) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 93: Entire article added, p. 832, � 1, effective July 1, 1994. L. 2003: (2) amended, p. 2330, � 270, effective July 1, 2004. L. 2004: (1) amended, p. 1508, � 285, effective July 1. L. 2019: (1) amended, (SB 19-086), ch. 166, p. 1962, � 59, effective July 1, 2020.