Page:United States Statutes at Large Volume 76.djvu/335

 76 STAT. ]

PUBLIC LAW 87-569-AUG. 6, 1962

JURISDICTION OF COURT TO LIQUIDATE ASSETS A N D AFFAIRS OF CORPORATION

SEC. 55. The United States District Court for the District of Columbia shall have full power to liquidate the assets and affairs of a corporation— (a) in any action by a member or director when it is made to appear— (1) that the directors are deadlocked in the management of the corporate affairs and that irreparable injury to the corporation is being suffered or is threatened by reason thereof, and either that the members are unable to break the deadlock or there are no members having voting rights; or (2) that the acts of the directors or those in control of the corporation are illegal, oppressive, or fraudulent; or (3) that the corporate assets are being misapplied or wasted; or (4) that the corporation is unable to carry out its purposes; (b) in an action by a creditor— (l)r when the claim of the creditor has been reduced to judgment and an execution thereon has been returned unsatisfied and it is established that the corporation is insolvent; or (2) when the corporation has admitted in writing that the claim of the creditor is due and owing and it is established that the corporation is insolvent; (c) upon application by a corporation to have its dissolution continued under the supervision of the court; (d) when an action has been commenced by the Commissioners to dissolve a corporation and it is made to appear that liquidation of its affairs should precede the entry of a decree of dissolution; (e) it shall not be necessary to make directors or members parties to any such action or proceeding unless relief is sought against them personally. PROCEDURE I N UQUTOATION OF CORPORATION BY COURT

SEC. 56. (a) I n proceedings to liquidate the assets and affairs of a corporation the court shall have the power to issue injunctions, to appoint a receiver or receivers pendente lite, with such powers and duties as the court, from time to time, may direct, and to take such other proceedings as may be requisite to preserve the corporate assets wherever situated, and carry on the affairs of the corporation until a full hearing can be had. (b) After a hearing had upon such notice as the court may direct to be given to all parties to the proceedings and to any other parties in interest designated by the court, the court may appoint a liquidating receiver or receivers with authority to collect the assets of the corporation. Such liquidating receiver or receivers shall have authority, subject to the order of the court, to sell, convey, and dispose of all or any part of the assets of the corporation wherever situated, either at public or private sale. The order appointing such liquidating receiver or receivers shall state their powers and duties. Such powers and duties may be increased or diminished at any time during the proceedings.

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