Corporate
Apr. 19, 2013
Shareholders can't block asset sales when receivers manage
Minority shareholders owning 10 percent of a corporation can block a sale of assets to the controlling shareholders in dissolution proceedings - though not when a receiver manages the sale. By Robert S. McWhorter, Katie E. Briscoe and Scott Sackett
Under California law, minority shareholders owning 10 percent or more of a corporation can block a sale of assets to the controlling shareholders in dissolution proceedings. However, that rule does not apply where the court appoints a receiver to manage the assets sale.
Once dissolution proceedings commence, Corporations Code Section 2001 empowers "directors (or other persons appointed...
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