13.1-748 - Receivership or custodianship. - Virginia Statutes

§ 13.1-748. Receivership or custodianship.

A. Unless an election to purchase has been filed under § 13.1-749.1, a courtin a judicial proceeding brought to dissolve a corporation may appoint one ormore receivers to wind up and liquidate, or one or more custodians to managewhile the proceeding is pending, the business and affairs of the corporation.The court shall hold a hearing, after notifying all parties to the proceedingand any interested persons designated by the court, before appointing areceiver or custodian. The court appointing a receiver or custodian hasexclusive jurisdiction over the corporation and all its property whereverlocated.

B. The court may appoint an individual, a domestic corporation, or a foreigncorporation authorized to transact business in the Commonwealth, as areceiver or custodian. The court may require the receiver or custodian topost bond, with or without sureties, in an amount the court directs.

C. The court shall describe the powers and duties of the receiver orcustodian in its appointing order, which may be amended from time to time.Among other powers:

1. The receiver (i) may dispose of all or any part of the assets of thecorporation wherever located, at a public or private sale, if authorized bythe court; and (ii) may sue and defend in his own name as receiver of thecorporation in all courts of the Commonwealth; and

2. The custodian may exercise all of the powers of the corporation, throughor in place of its board of directors or officers, to the extent necessary tomanage the affairs of the corporation in the best interest of itsshareholders and creditors.

D. The court during a receivership may redesignate the receiver a custodian,and during a custodianship may redesignate the custodian a receiver, if doingso is in the best interest of the corporation, its shareholders, andcreditors.

E. The court from time to time during the receivership or custodianship mayorder compensation paid and expense disbursements or reimbursements made tothe receiver or custodian and the custodian's counsel from the assets of thecorporation or proceeds from the sale of the assets.

(Code 1950, §§ 13.1-94 to 13.1-96; 1956, c. 428; 1959, Ex. Sess., c. 57;1968, c. 112; 1974, c. 291; 1975, c. 500; 1985, c. 522; 2005, c. 765; 2007,c. 165.)