§ 29-35-117 — Judgment of dissolution - Escheat of corporate property

If it be adjudged that a defendant corporation has by neglect, nonuse, abuse or surrender, forfeited its corporate rights, judgment will be rendered that the defendant be altogether excluded from such rights and be dissolved; and in the event the court shall find that the corporation, its stockholders, directors, officers or managers have intentionally impaired or depreciated its assets or property for the purpose of preventing the corporation from efficiently discharging its duty to the public, the property of the corporation shall escheat to the state unless its stockholders, directors, officers or managers, within a reasonable period fixed by the court, restore to the treasury of the corporation a sufficient amount of money or property to enable it to efficiently discharge its duty to the public; and also that the corporation, its directors, or managers, as the case may be, pay the costs.

Legislative History

Code 1858, § 3425; Shan., § 5181; Code 1932, § 9352; Acts 1949, ch. 207, § 1; C. Supp. 1950, § 9352; T.C.A. (orig. ed.), § 23-2817.