§ 490.1432 — Receivership or custodianship

Iowa § 490.1432

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 490: BUSINESS CORPORATIONS

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1. Unless an election to purchase has been filed under section 490.1434, a court in a
judicial proceeding brought 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 notifying 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 or a domestic or foreign corporation or eligible

entityasareceiverorcustodian, which, ifaforeigncorporationorforeigneligibleentity, must
be registered to do business in this state. 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 all of the
following apply:
a. The receiver may do any or all of the following:
(1) Dispose of all or any part of the assets of the corporation wherever located, at a public
or private sale.
(2) Sue and defend in the receiver’s own name as receiver of the corporation in all courts
of this state.
b. The custodian may exercise all of the powers of the corporation, through or in place of
its board of directors, to the extent necessary to manage the affairs of the corporation in the
best interests of its shareholders and creditors.
c. The receiver or custodian shall have such other powers and duties as the court may
provide in the appointing order, which may be amended from time to time.
4. The court during a receivership may redesignate the receiver a custodian and during a
custodianship may redesignate the custodian a receiver.
5. The court from time to time during the receivership or custodianship may order
compensation paid and expenses paid or reimbursed to the receiver or custodian from the
assets of the corporation or proceeds from the sale of the assets.