10-1806. Settlement of disputes;
arbitration
(L94, Ch. 223, sec. 20. Eff. until 1/1/11)
The articles of incorporation may provide for arbitration of any deadlock or dispute
involving the internal affairs of the corporation. To the extent the articles of
incorporation do not provide to the contrary, such arbitration shall be governed by the
provisions of title 12, chapter 9, article 1. Unless otherwise provided in the articles
of incorporation, if the arbitrators determine that such deadlock or dispute either
impairs or threatens to impair the value of the assets or continued conduct of the
business of the corporation, then the arbitrators may appoint a conservator or interim
manager to preserve the business and assets of the corporation or to continue the
operation of the business of the corporation, or both, during the pendency of such
arbitration proceedings. If such arbitrators appoint a conservator or interim manager,
the arbitrators may suspend, revoke or nullify the authority of any existing manager or
managers. The articles of incorporation may also provide that the arbitrators may
suspend, revoke or nullify the employment or any employment contract of any existing
manager or managers without payment of compensation and without liability for damages or
breach of contract. Unless provided otherwise in the articles of incorporation, the
arbitrators may define the authority and set the compensation of the conservator or
interim manager, and shall immediately file a certificate of the appointment of such
conservator or interim manager with the commission. Such arbitration proceedings shall
not supersede the power of the superior court of Arizona to appoint an interim manager
under section 10-1814. A court appointed interim manager shall replace any conservator or
interim manager appointed under the provisions of this section.
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