48-2c-1212 - Receivership or custodianship.
48-2c-1212. Receivership or custodianship.
(1) A court in a judicial proceeding brought to dissolve a company may, at any timebefore entering a decree of dissolution, appoint one or more custodians to manage the businessand affairs of the company until further order of the court and may, upon or after entering adecree dissolving the company, appoint one or more receivers to wind up and liquidate thebusiness and affairs of the company. The court shall hold a hearing, after giving notice to allparties to the proceeding and any interested persons designated by the court, before appointing areceiver or a custodian. The court appointing a receiver or custodian has exclusive jurisdictionover the company and all of its property wherever located.
(2) The court may appoint any person or the court may require the receiver or custodianto 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 itsappointing 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 assets of the company wherever located, at apublic or private sale, if authorized by the court; and
(ii) may sue and defend in its own name as receiver of the company in all courts of thisstate; or
(b) the custodian may exercise all of the powers of the company, through or in place ofits members or managers, to the extent necessary to manage the affairs of the company in the bestinterests of its members and creditors.
(4) The court during a receivership may redesignate the receiver a custodian, and during acustodianship may redesignate the custodian a receiver, if doing so is in the best interests of thecompany, its members, and its creditors.
(5) The court from time to time during the receivership or custodianship may ordercompensation paid and expense disbursements or reimbursements made to the receiver orcustodian and the custodian's or receiver's counsel from the assets of the company or proceedsfrom the sale of the assets.
Enacted by Chapter 260, 2001 General Session