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Indiana Corporations and Receiverships

Recieverships are ?...an extraordinary and drastic remedy to be exercised with great caution.? Crippin Printing Corp. v. Abel, 441 N.E.2d 1002, 1005 (Ind. Ct. App. 1982). Which may explain why we seldom see them. The other reason being the federal Bankruptcy code.

The Indiana Code sets out the grounds for appointing a receiver in Ind. Code § 32-30-5-1(5) for a corporation:

A receiver may be appointed by the court in the following cases:
(5) When a corporation:

(A) has been dissolved;
(B) is insolvent;
(C) is in imminent danger of insolvency; or
(D) has forfeited its corporate rights.

Do not have your corporate meetings, do not keep corporate minutes, do not pay your annual fee to the Secretary of State, and your corporation may be faced with a receivership.

For a more recent case where a receivership was not allowed see THE CITY OF SOUTH BEND, INDIANA v CENTURY INDEMNITY COMPANY, Ind.App. 2005.

Full post as published by Indiana Civil & Business Lawyer on April 17, 2009 (boomark / email).