§ 7-80-812 — Receivership or custodianship

(1) A court in a judicial proceeding
brought to dissolve a limited liability company may appoint one or more receivers to
wind up and liquidate, or one or more custodians to manage, the business and
affairs of the limited liability company. 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 limited liability company 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 limited liability
company 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 limited
liability company in all courts; or

(b) The custodian, with the authority of a manager of a limited liability
company, the articles of organization of which provide that it is to be managed by
managers, may exercise all of the powers of the limited liability company, through
or in place of its managers or members, to the extent necessary to manage the
affairs of the limited liability company in the best interests of its members 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 limited liability company and its members 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 limited
liability company or proceeds from the sale of the assets.

Legislative History

Source: L. 2003: Entire part R&RE, p. 2274, � 192, effective July 1, 2004. L. 2006: (3)(b) amended, p. 864, � 38, effective July 1.