17-7212.   Appointment of custodian for close corporation, when.(a) In addition to the provisions of K.S.A. 17-6516,respecting the appointment of a custodian for any corporation, thedistrict court, upon application of any stockholder, may appoint one ormore persons to be custodians, and, if the corporation is insolvent, tobe receivers, of any close corporation when:

      (1)   Pursuant to K.S.A. 17-7211 the business andaffairs of the corporation are managed by the stockholders and they areso divided that the business of the corporation is suffering or isthreatened with irreparable injury, and any remedy with respect to suchdeadlock provided in the articles of incorporation or bylaws or in anywritten agreement of the stockholders has failed; or

      (2)   The petitioning stockholder has the right to dissolution of thecorporation under a provision of the articles of incorporation permittedby K.S.A. 17-7215.

      (b)   In lieu of appointing a custodian for a close corporation underthis section or K.S.A. 17-6516 the court may appoint aprovisional director, whose powers and status shall be as provided inK.S.A. 17-7213, if the court determines that it wouldbe in the best interest of the corporation. Such appointment shall notpreclude any subsequent order of the court appointing a custodian forsuch corporation.

      History:   L. 1972, ch. 52, § 136; July 1.