5764 - Appointment of custodian of corporation on deadlock or other cause. - Pennsylvania Statutes

§ 5764. Appointment of custodian of corporation on deadlock or other cause. (a) General rule.--The court, upon application of any member, may appoint one or more persons to be custodians of and for any nonprofit corporation when it is made to appear: (1) that at any meeting for the election of directors the members are so divided that they have failed to elect successors to directors whose terms have expired or would have expired upon the qualification of their successors; or (2) that any of the conditions specified in section 5981 (relating to proceedings upon petition of member, etc.) exists with respect to the corporation. (b) Power and title of custodian.--A custodian appointed under this section shall have all the power and title of a receiver appointed under Subchapter G of Chapter 59 (relating to involuntary liquidation and dissolution), but the authority of the custodian shall be to continue the business of the corporation and not to liquidate its affairs and distribute its assets, except when the court shall otherwise order and except in cases arising under section 5981(1), (2) and (3) (relating to proceedings upon petition of member, etc.). (Dec. 21, 1988, P.L.1444, No.177, eff. Oct. 1, 1989) 1988 Amendment. Act 177 amended subsecs. (a)(2) and (b). Cross References. Section 5764 is referred to in section 6145 of this title.