                                 CODE OF VIRGINIA

RECEIVERSHIP OR CUSTODIANSHIP (§ 13.1-748)

A. Unless an election to purchase has been filed under &#xA7; 13.1-749.1, a
court in a judicial proceeding brought to dissolve a corporation may appoint one
or more receivers to wind up and liquidate, or one or more custodians to manage
while the proceeding is pending, the business and affairs of the corporation.
The court shall hold a hearing, after notifying all parties to the proceeding
and any interested persons designated by the court, before appointing a receiver
or custodian. The court appointing a receiver or custodian has exclusive
jurisdiction over the corporation and all its property wherever located.

B. The court may appoint as a receiver or custodian an individual, a domestic
corporation or eligible entity, or a foreign corporation or eligible entity
authorized to transact business in the Commonwealth. The court may require the
receiver or custodian to post bond, with or without sureties, in an amount the
court directs.

C. The court shall describe the powers and duties of the receiver or custodian
in its appointing order, which may be amended from time to time. Among other
powers:

   1. The receiver (i) may dispose of all or any part of the assets of the
   corporation wherever located, at a public or private sale; and (ii) may sue
   and defend in the receiver&#8217;s own name as receiver of the corporation in
   all courts of the Commonwealth; and

   2. The custodian may exercise all of the powers of the corporation, through or
   in place of its board of directors or officers, to the extent necessary to
   manage the affairs of the corporation in the best interest of its shareholders
   and creditors.

D. The court during a receivership may redesignate the receiver a custodian, and
during a custodianship may redesignate the custodian a receiver.

E. The court from time to time during the receivership or custodianship may
order compensation paid and expenses paid or reimbursed to the receiver or
custodian from the assets of the corporation or proceeds from the sale of the
assets.

HISTORY: Code 1950, §§ 13.1-94 to 13.1-96; 1956, c. 428; 1959, Ex. Sess., c.
57; 1968, c. 112; 1974, c. 291; 1975, c. 500; 1985, c. 522; 2005, c. 765; 2007,
c. 165; 2019, c. 734.