New Jersey Statutes 15A:14-2. Jurisdiction of the superior court; appointment of receiver
Terms Used In New Jersey Statutes 15A:14-2
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
(1) a creditor whose claim is for a sum certain or for a sum which can by computation be made certain;
(2) a member or members who individually or in combination constitute at least 10% of the members of any class of members of the corporation;
(3) the corporation, pursuant to resolution of its board; or
(4) the Attorney General.
b. The action shall be based upon at least one of the following grounds:
(1) the corporation has misused or improperly failed to use its powers, privileges or franchises;
(2) the corporation is insolvent;
(3) the corporation has suspended its ordinary activities for lack of funds;
(4) the activities of the corporation are being conducted in violation of its certificate of incorporation or, with respect to specific assets, in violation of any terms, conditions, or restrictions applicable to those assets imposed upon the corporation;
(5) the activities of the corporation are being conducted at a great loss and with great prejudice to the interests of its creditors or members;
(6) the board has determined that it is advisable that the corporation be dissolved, its affairs settled, and its estate and effects divided and distributed by the court pursuant to this chapter; or
(7) if brought by the Attorney General, that the continued conduct of activities by the corporation is prejudicial to the public.
c. The court may proceed in the action in a summary manner or otherwise. It shall have power to appoint and remove one or more receivers of the corporation from time to time, and to enjoin the corporation, its officers and agents, from exercising any of its privileges and franchises, and from collecting or receiving any debts, or paying out, selling, assigning or transferring any of its property, except to a receiver, and except as the court may otherwise order. One or more receivers so appointed may be selected from among the trustees of the corporation. In an action by the Attorney General, the court may take action only upon a showing by clear and convincing evidence of any cause set forth in subsection b. of this section. The court shall have all powers as shall be appropriate for the fulfillment of the purposes of this chapter including the power, if equitable, to set aside any transfer in violation of any terms, conditions, or restrictions, applicable to assets imposed upon the corporation.
d. Every receiver shall, before assuming the receiver’s duties, execute and file a bond in the office of the clerk of the Superior Court, with sureties and in form as the court shall approve.
L.1983, c. 127, s. 15A:14-2, eff. Oct. 1, 1983.