§ 114 — Visitation of supreme court

New York § 114

• Jurisdiction: New York
• Law NPC: Not-for-Profit Corporation
• Art. 1: Short Title; Definitions; Application; Certificates; Miscellaneous

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§ 114. Visitation of supreme court.\n Charitable corporations, whether formed under general or special laws,\nwith their books and vouchers, shall be subject to the visitation and\ninspection of a justice of the supreme court, or of any person appointed\nby the court for that purpose. If it appears by the verified petition of\na member, director, officer or creditor of any such corporation, that\nit, or its directors, officers, members, key persons or agents, have\nmisappropriated any of the funds or property of the corporation, or\ndiverted them from the purpose of its incorporation, or that the\ncorporation has acquired property in excess of the amount which it is\nauthorized by law to hold, or has engaged in any business other than\nthat stated in its certificate of incorporation, the court may order\nthat notice of at least eight days, with a copy of the petition, be\nserved on the corporation, the attorney general and the persons charged\nwith misconduct, requiring them to show cause at a time and place\nspecified, why they should not be required to make and file an inventory\nand account of the property, effects and liabilities of such corporation\nwith a detailed statement of its transactions during the twelve months\nnext preceding the granting of such order. On the hearing of such\napplication, the court may make an order requiring such inventory,\naccount and statement to be filed, and proceed to take and state an\naccount of the property and liabilities of the corporation, or may\nappoint a referee for that purpose. When such account is taken and\nstated, after hearing all the parties to the application, the court may\nenter a final order determining the amount of property so held by the\ncorporation, its annual income, whether any of the property or funds of\nthe corporation have been misappropriated or diverted to any other\npurpose than that for which such corporation was incorporated, and\nwhether such corporation has been engaged in any activity not covered by\nits certificate of incorporation. An appeal may be taken from the order\nby any party aggrieved to the appellate division of the supreme court,\nand to the court of appeals, as in a civil action. No corporation shall\nbe required to make and file more than one inventory and account in any\none year, nor to make a second account and inventory, while proceedings\nare pending for the statement of an account under this section.\n