§58‑24‑145. Injunction Liquidation Receivership of domesticsociety.
(a) When theCommissioner upon investigation finds that a domestic society:
(1) Has exceeded itspowers;
(2) Has failed to complywith any provision of this Article;
(3) Is not fulfillingits contracts in good faith;
(4) Has a membership ofless than 400 after an existence of one year or more; or
(5) Is conductingbusiness fraudulently or in a manner hazardous to its members, creditors, thepublic or the business;
the Commissioner shall notify thesociety of such deficiency or deficiencies and state in writing the reasons forhis or her dissatisfaction. The Commissioner shall at once issue a writtennotice to the society requiring that the deficiency or deficiencies which existare corrected. After such notice the society shall have a 30 day period inwhich to comply with the Commissioner's request for correction, and if thesociety fails to comply the Commissioner shall notify the society of suchfindings of noncompliance and require the society to show cause on a date namedwhy it should not be enjoined from carrying on any business until the violationcomplained of shall have been corrected, or why an action under Article 41 ofChapter 1 of the General Statutes (quo warranto) should not be commencedagainst the society.
(b) If on such date thesociety does not present good and sufficient reasons why it should not be soenjoined or why such action should not be commenced, the Commissioner maypresent the facts relating thereto to the Attorney General who shall, if he orshe deems the circumstances warrant, commence an action to enjoin the societyfrom transacting business or under Article 41 of Chapter 1 of the GeneralStatutes (quo warranto).
(c) The court shallthereupon notify the officers of the society of a hearing. If after a fullhearing it appears that the society should be so enjoined or liquidated or areceiver appointed, the court shall enter the necessary order. No society soenjoined shall have the authority to do business until:
(1) The Commissionerfinds that the violation complained of has been corrected;
(2) The costs of suchaction shall have been paid by the society if the court finds that the societywas in default as charged;
(3) The court hasdissolved its injunction; and
(4) The Commissioner hasreinstated the license.
(d) If the court ordersthe society liquidated, it shall be enjoined from carrying on any furtherbusiness, whereupon the receiver of the society shall proceed at once to takepossession of the books, papers, money and other assets of the society and,under the direction of the court, proceed forthwith to close the affairs of thesociety and to distribute its funds to those entitled thereto.
(e) No action underthis section shall be recognized in any court of this State unless brought bythe Attorney General upon request of the Commissioner. Whenever a receiver isto be appointed for a domestic society, the court shall appoint theCommissioner as such receiver.
(f) The provisions ofthis section relating to hearing by the Commissioner, action by the AttorneyGeneral at the request of the Commissioner, hearing by the court, injunctionand receivership shall be applicable to a society which shall voluntarilydetermine to discontinue business. (1987, c. 483, s. 2; 1991, c.720, s. 4; 1999‑132, s. 9.1.)
§58‑24‑145. Injunction Liquidation Receivership of domesticsociety.
(a) When theCommissioner upon investigation finds that a domestic society:
(1) Has exceeded itspowers;
(2) Has failed to complywith any provision of this Article;
(3) Is not fulfillingits contracts in good faith;
(4) Has a membership ofless than 400 after an existence of one year or more; or
(5) Is conductingbusiness fraudulently or in a manner hazardous to its members, creditors, thepublic or the business;
the Commissioner shall notify thesociety of such deficiency or deficiencies and state in writing the reasons forhis or her dissatisfaction. The Commissioner shall at once issue a writtennotice to the society requiring that the deficiency or deficiencies which existare corrected. After such notice the society shall have a 30 day period inwhich to comply with the Commissioner's request for correction, and if thesociety fails to comply the Commissioner shall notify the society of suchfindings of noncompliance and require the society to show cause on a date namedwhy it should not be enjoined from carrying on any business until the violationcomplained of shall have been corrected, or why an action under Article 41 ofChapter 1 of the General Statutes (quo warranto) should not be commencedagainst the society.
(b) If on such date thesociety does not present good and sufficient reasons why it should not be soenjoined or why such action should not be commenced, the Commissioner maypresent the facts relating thereto to the Attorney General who shall, if he orshe deems the circumstances warrant, commence an action to enjoin the societyfrom transacting business or under Article 41 of Chapter 1 of the GeneralStatutes (quo warranto).
(c) The court shallthereupon notify the officers of the society of a hearing. If after a fullhearing it appears that the society should be so enjoined or liquidated or areceiver appointed, the court shall enter the necessary order. No society soenjoined shall have the authority to do business until:
(1) The Commissionerfinds that the violation complained of has been corrected;
(2) The costs of suchaction shall have been paid by the society if the court finds that the societywas in default as charged;
(3) The court hasdissolved its injunction; and
(4) The Commissioner hasreinstated the license.
(d) If the court ordersthe society liquidated, it shall be enjoined from carrying on any furtherbusiness, whereupon the receiver of the society shall proceed at once to takepossession of the books, papers, money and other assets of the society and,under the direction of the court, proceed forthwith to close the affairs of thesociety and to distribute its funds to those entitled thereto.
(e) No action underthis section shall be recognized in any court of this State unless brought bythe Attorney General upon request of the Commissioner. Whenever a receiver isto be appointed for a domestic society, the court shall appoint theCommissioner as such receiver.
(f) The provisions ofthis section relating to hearing by the Commissioner, action by the AttorneyGeneral at the request of the Commissioner, hearing by the court, injunctionand receivership shall be applicable to a society which shall voluntarilydetermine to discontinue business. (1987, c. 483, s. 2; 1991, c.720, s. 4; 1999‑132, s. 9.1.)
§58‑24‑145. Injunction Liquidation Receivership of domesticsociety.
(a) When theCommissioner upon investigation finds that a domestic society:
(1) Has exceeded itspowers;
(2) Has failed to complywith any provision of this Article;
(3) Is not fulfillingits contracts in good faith;
(4) Has a membership ofless than 400 after an existence of one year or more; or
(5) Is conductingbusiness fraudulently or in a manner hazardous to its members, creditors, thepublic or the business;
the Commissioner shall notify thesociety of such deficiency or deficiencies and state in writing the reasons forhis or her dissatisfaction. The Commissioner shall at once issue a writtennotice to the society requiring that the deficiency or deficiencies which existare corrected. After such notice the society shall have a 30 day period inwhich to comply with the Commissioner's request for correction, and if thesociety fails to comply the Commissioner shall notify the society of suchfindings of noncompliance and require the society to show cause on a date namedwhy it should not be enjoined from carrying on any business until the violationcomplained of shall have been corrected, or why an action under Article 41 ofChapter 1 of the General Statutes (quo warranto) should not be commencedagainst the society.
(b) If on such date thesociety does not present good and sufficient reasons why it should not be soenjoined or why such action should not be commenced, the Commissioner maypresent the facts relating thereto to the Attorney General who shall, if he orshe deems the circumstances warrant, commence an action to enjoin the societyfrom transacting business or under Article 41 of Chapter 1 of the GeneralStatutes (quo warranto).
(c) The court shallthereupon notify the officers of the society of a hearing. If after a fullhearing it appears that the society should be so enjoined or liquidated or areceiver appointed, the court shall enter the necessary order. No society soenjoined shall have the authority to do business until:
(1) The Commissionerfinds that the violation complained of has been corrected;
(2) The costs of suchaction shall have been paid by the society if the court finds that the societywas in default as charged;
(3) The court hasdissolved its injunction; and
(4) The Commissioner hasreinstated the license.
(d) If the court ordersthe society liquidated, it shall be enjoined from carrying on any furtherbusiness, whereupon the receiver of the society shall proceed at once to takepossession of the books, papers, money and other assets of the society and,under the direction of the court, proceed forthwith to close the affairs of thesociety and to distribute its funds to those entitled thereto.
(e) No action underthis section shall be recognized in any court of this State unless brought bythe Attorney General upon request of the Commissioner. Whenever a receiver isto be appointed for a domestic society, the court shall appoint theCommissioner as such receiver.
(f) The provisions ofthis section relating to hearing by the Commissioner, action by the AttorneyGeneral at the request of the Commissioner, hearing by the court, injunctionand receivership shall be applicable to a society which shall voluntarilydetermine to discontinue business. (1987, c. 483, s. 2; 1991, c.720, s. 4; 1999‑132, s. 9.1.)
