§ 23-17-24-3 — Receivers and custodians

Indiana § 23-17-24-3

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 17: NONPROFIT CORPORATIONS
• Ch. 24: Judicial Dissolution

Text

(a) A court in a judicial proceeding brought
by the attorney general or by any other party named under section 1 of
this chapter to dissolve a public benefit or mutual benefit corporation
may appoint at least one (1):
(1) receiver to wind up and liquidate; or
(2) custodian to manage;
the 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 exclusive jurisdiction over
the corporation and all of the corporation's property wherever located.
(b) The court may appoint an individual or a domestic or foreign
business or nonprofit corporation authorized to transact business in
Indiana 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.
(c) The court shall describe the powers and duties of the receiver or
custodian in the appointing order, which may be amended from time to
time, including the following:
(1) The receiver may do the following:
(A) Dispose of all or any part of the assets of the corporation
wherever located, at a public or private sale, if authorized by
the court. However, the corporation is subject to a trust, an
endowment, and other restrictions that would be applicable to
the corporation.
(B) Sue and defend in the receiver's or custodian's name as
receiver or custodian of the corporation in all Indiana courts.
(2) The custodian may exercise all of the powers of the
corporation, through or in place of the corporation's board of
directors or officers, to the extent necessary to manage the affairs
of the corporation in the best interests of the corporation's
members and creditors or to carry out the corporation's lawful
purposes.
(d) 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 the
corporation's members and creditors.
(e) The court may, during the receivership or custodianship, order
compensation paid and expense disbursements or reimbursements
made to the receiver or custodian and the receiver's or custodian's
counsel from the assets of the corporation or proceeds from the sale of
the assets.

Legislative History

As added by P.L.179-1991, SEC.1. Amended by P.L.245-2005, SEC.6.