10-1430

10-1430. Grounds for judicial dissolution or
equitable relief

A. The court may dissolve a corporation in a proceeding by the attorney general if
it is established that either:

1. The corporation obtained its articles of incorporation through fraud.

2. The corporation has continued to exceed or abuse the authority conferred on it
by law.

B. The court may dissolve a corporation in a proceeding by a shareholder if it is
established that either:

1. The directors are deadlocked in the management of the corporate affairs, the
shareholders are unable to break the deadlock and irreparable injury to the corporation
is threatened or being suffered or the business and affairs of the corporation cannot be
conducted to the advantage of the shareholders generally because of the deadlock.

2. The directors or those in control of the corporation have acted, are acting or
will act in a manner that is illegal, oppressive or fraudulent.

3. The shareholders are deadlocked in voting power and have failed for a period
that includes at least two consecutive annual meeting dates to elect one or more
directors.

4. The corporate assets are being wasted, misapplied or diverted for noncorporate
purposes.

C. The court may dissolve a corporation in a proceeding by a creditor if it is
established that either:

1. The creditor's claim has been reduced to a judgment, the execution of the
judgment has been returned unsatisfied and the corporation is insolvent.

2. The corporation has admitted in writing that the creditor's claim is due and
owing and the corporation is insolvent.

D. The court may dissolve a corporation in a proceeding by the corporation to have
its voluntary dissolution continued under court supervision.