17-6516.   Appointment of custodian or receiver for deadlockedcorporation; powers of custodian.(a) The district court, upon application of any stockholder, may appointone or more persons to be custodians and, if the corporation isinsolvent, to be receivers, of and for any corporation when:

      (1)   At any meeting held for the election of directors thestockholders are so divided that they have failed to elect successors todirectors whose terms have expired or would have expired uponqualification of their successors; or

      (2)   The business of the corporation is suffering or is threatenedwith irreparable injury because the directors are so divided respectingthe management of the affairs of the corporation that the required votefor action by the board of directors cannot be obtained and thestockholders are unable to terminate this division; or

      (3)   The corporation has abandoned its business and has failed withina reasonable time to take steps to dissolve, liquidate or distribute itsassets.

      (b)   A custodian appointed under this section shall have all thepowers and title of a receiver appointed under K.S.A. 17-6901, but the authorityof the custodian is to continue the businessof the corporation and not to liquidate its affairs and distribute itsassets, except when the court shall otherwise order and except in casesarising under subsection (a)(3) of this section or subsection (a)(2)of K.S.A. 17-7212.

      History:   L. 1972, ch. 52, § 69; July 1.