1. Any stockholder may apply to the district court to appoint one or more persons to be custodians of the corporation, and, if the corporation is insolvent, to be receivers of the corporation when:
(a) The business of the corporation is suffering or is threatened with irreparable injury because the directors are so divided respecting the management of the affairs of the corporation that a required vote for action by the board of directors cannot be obtained and the stockholders are unable to terminate this division; or
(b) The corporation has abandoned its business and has failed within a reasonable time to take steps to dissolve, liquidate or distribute its assets in accordance with this chapter.
2. An applicant on whose behalf a stockholder has applied to the district court for a custodianship pursuant to subsection 1 shall provide the following information, along with an affidavit attesting that such information is true and correct, to the district court:
(a) A detailed list of all previous applications to a court in any jurisdiction for a custodianship of a publicly traded corporation that were filed by the applicant or an affiliate or subsidiary of the applicant.
(b) If an application listed in paragraph (a) was approved, a detailed description of the activities performed during the custodianship by the applicant or the affiliate or subsidiary of the applicant.
(c) A description of the current corporate status and business operation of any publicly traded corporation for which the applicant and any affiliate or subsidiary of the applicant has held a custodianship.
(d) A full disclosure of any and all previous criminal, administrative, civil or National Association of Securities Dealers, Inc., or Securities and Exchange Commission investigations, violations or convictions concerning the applicant and any affiliate or subsidiary of the applicant.
(e) Evidence of reasonable efforts by the applicant to contact the officers and directors of the corporation for which the custodianship is sought.
(f) Evidence of a demand by the applicant to the officers and directors of the corporation for which the custodianship is sought that the corporation comply with the provisions of this chapter and that the applicant did not receive a response.
3. The district court shall order any applicant who is granted custodianship pursuant to this section to:
(a) Comply with the provisions of NRS 78.180 or 80.170, as applicable. The custodian shall submit evidence of compliance with this paragraph to the district court.
(b) Provide reasonable notice to all shareholders of record of a shareholder meeting to be held within a reasonable time after an application for custodianship or receivership has been granted. The custodian shall submit evidence of compliance with this paragraph to the district court.
(c) Provide the district court with a report of the actions taken at the shareholder meeting noticed by the custodian.
(d) Provide the district court with periodic reports, at intervals to be determined by the court, of the activities of the custodian and the board of directors and the progress of the corporation.
(e) Provide any other information deemed necessary by the court.
4. Within 10 days after being appointed custodian of a Nevada publicly traded corporation, the custodian shall file with the Secretary of State an amendment to the articles of incorporation containing the following information:
(a) Disclosures of any previous criminal, administrative, civil or National Association of Securities Dealers, Inc., or Securities and Exchange Commission investigations, violations or convictions concerning the custodian and any affiliate of the custodian.
(b) A statement indicating that:
(1) Reasonable attempts were made to contact the officers or directors of the corporation to request that the corporation comply with corporate formalities and to continue its business.
(2) The custodian is in fact continuing the business and attempting to further the interests of the shareholders.
(3) The custodian will reinstate or maintain the corporate charter.
(c) Any other information required by regulation to be submitted to the Secretary of State.
5. The Secretary of State may adopt regulations to administer the provisions of subsection 4.
6. A custodian appointed pursuant to this section has all the powers and title of a trustee appointed under NRS 78.590, 78.635 and 78.650, but the authority of the custodian is to continue the business of the corporation and not to liquidate its affairs or distribute its assets, except when the district court so orders and except in cases arising pursuant to paragraph (b) of subsection 1.
(Added to NRS by 1991, 1188; A 2007, 1317)
Structure Nevada Revised Statutes
Chapter 78 - Private Corporations
NRS 78.010 - Definitions; construction.
NRS 78.015 - Applicability of chapter; effect on corporations existing before April 1, 1925.
NRS 78.020 - Limitations on incorporation under chapter; compliance with other laws.
NRS 78.026 - Form required for filing of records.
NRS 78.027 - Corporate records: Microfilming; imaging; return.
NRS 78.028 - Filing of records written in language other than English.
NRS 78.0296 - Ratification or validation of noncompliant corporate acts.
NRS 78.0298 - Records or signatures maintained by corporation.
NRS 78.035 - Articles of incorporation: Required provisions.
NRS 78.037 - Articles of incorporation: Optional provisions.
NRS 78.040 - Name of corporation: Reservation; injunctive relief.
NRS 78.046 - Authorization of forum selection provisions in articles or bylaws.
NRS 78.050 - Commencement of corporate existence.
NRS 78.055 - Acceptable evidence of incorporation.
NRS 78.065 - Adoption and use of corporate seal or stamp.
NRS 78.075 - Railroad companies: Powers.
NRS 78.085 - Railroad companies: Filing and recording of certified maps and profiles.
NRS 78.115 - Board of directors: Number and qualifications.
NRS 78.120 - Board of directors: General powers.
NRS 78.125 - Committees of board of directors: Designation; powers; membership.
NRS 78.135 - Authority of directors and representatives of corporation.
NRS 78.150 - Filing requirements; fees; powers and duties of Secretary of State; regulations.
NRS 78.153 - Additional filing requirements for certain corporations: Criteria; statement; fees.
NRS 78.155 - Certificate of authorization to transact business.
NRS 78.180 - Defaulting corporations: Conditions and procedure for reinstatement.
NRS 78.185 - Defaulting corporations: Reinstatement or revival under old or new name; regulations.
NRS 78.191 - "Distribution" defined.
NRS 78.195 - Issuance of more than one class or series of stock; rights of stockholders.
NRS 78.196 - Required and authorized classes or series of stock; shares called for redemption.
NRS 78.197 - Rights of persons holding obligations of corporation.
NRS 78.200 - Rights or options to purchase stock.
NRS 78.205 - Fractions of shares: Issuance; alternatives to issuance.
NRS 78.215 - Issuance of shares for consideration or as share dividend.
NRS 78.220 - Subscriptions for corporate shares: Payment; default; irrevocability.
NRS 78.240 - Shares of stock are personal property; transfers.
NRS 78.265 - Preemptive rights of stockholders in corporations organized before October 1, 1991.
NRS 78.275 - Assessments on stock: Levy and collection; sale after default in payment.
NRS 78.283 - Treasury shares: Definition; limitations; retirement and disposal.
NRS 78.288 - Distributions to stockholders.
NRS 78.300 - Liability of directors for unlawful distributions.
NRS 78.310 - Stockholders’ and directors’ meetings: Location; authority to call.
NRS 78.325 - Actions at meetings not regularly called: Ratification and approval.
NRS 78.330 - Directors: Election; terms; classification; voting power.
NRS 78.335 - Directors: Removal; filling of vacancies.
NRS 78.340 - Failure to hold election of directors on regular day does not dissolve corporation.
NRS 78.345 - Election of directors by order of court upon failure of regular election.
NRS 78.355 - Stockholders’ proxies.
NRS 78.360 - Cumulative voting.
NRS 78.370 - Notice to stockholders.
NRS 78.375 - Waiver of notice or other communication.
NRS 78.3782 - "Acquiring person" defined.
NRS 78.3783 - "Acquisition" defined.
NRS 78.3784 - "Control shares" defined.
NRS 78.3785 - "Controlling interest" defined.
NRS 78.3786 - "Fair value" defined.
NRS 78.3787 - "Interested stockholder" defined.
NRS 78.3788 - "Issuing corporation" defined.
NRS 78.3789 - Delivery of offeror’s statement by acquiring person; contents of statement.
NRS 78.3791 - Approval of voting rights of acquiring person.
NRS 78.3792 - Redemption of control shares.
NRS 78.3793 - Rights of dissenting stockholders.
NRS 78.380 - Amendment of articles before issuance of voting stock.
NRS 78.385 - Scope of amendments.
NRS 78.390 - Amendment of articles after issuance of stock: Procedure.
NRS 78.403 - Restatement of articles.
NRS 78.412 - "Affiliate" defined.
NRS 78.413 - "Associate" defined.
NRS 78.414 - "Beneficial owner" defined.
NRS 78.416 - "Combination" defined.
NRS 78.417 - "Common shares" defined.
NRS 78.421 - "Date of announcement" defined.
NRS 78.422 - "Date of consummation" defined.
NRS 78.423 - "Interested stockholder" defined.
NRS 78.424 - "Market value" defined.
NRS 78.426 - "Preferred shares" defined.
NRS 78.4265 - "Publicly traded corporation" defined.
NRS 78.427 - "Resident domestic corporation" defined.
NRS 78.428 - "Securities Exchange Act" defined.
NRS 78.431 - "Subsidiary" defined.
NRS 78.432 - "Voting shares" defined.
NRS 78.433 - Applicability: Generally.
NRS 78.434 - Applicability: Election not to be governed by provisions.
NRS 78.436 - Applicability: Combination with inadvertent interested stockholder.
NRS 78.437 - Applicability: Combination with interested stockholder as of certain date.
NRS 78.439 - Authorized combinations: General requirements.
NRS 78.443 - Authorized combinations: Required form and distribution of consideration.
NRS 78.565 - Sale, lease or exchange of assets: Authority; vote of stockholders.
NRS 78.570 - Sale of property and franchise under decree of court.
NRS 78.575 - Procedure for dissolution before payment of capital and beginning of business.
NRS 78.580 - Procedure for dissolution after beginning of business.
NRS 78.590 - Trustees of dissolved corporation: Powers of directors.
NRS 78.597 - Liability of stockholders of dissolved corporation.
NRS 78.600 - Trustees or receivers for dissolved corporations: Appointment; powers.
NRS 78.605 - Jurisdiction of district court.
NRS 78.615 - Abatement of pending actions; substitution of dissolution trustees or receivers.
NRS 78.620 - Dissolution or forfeiture of charter by decree of court; filing.
NRS 78.622 - Reorganization under federal law: Powers of corporation.
NRS 78.635 - Appointment of receiver or trustee of insolvent corporation: Powers.
NRS 78.640 - Property and privileges of insolvent corporation vest in appointed receiver.
NRS 78.655 - Reorganization of corporation by majority of stockholders during receivership.
NRS 78.660 - Powers of district court.
NRS 78.665 - Receiver to take possession of corporate assets upon court order.
NRS 78.670 - Inventory, list of debts and reports by receiver.
NRS 78.675 - Creditors’ proofs of claims; when participation barred; notice.
NRS 78.680 - Creditors’ claims to be in writing under oath; examination of claimants.
NRS 78.685 - Action on creditors’ claims; appeal of disallowed claims.
NRS 78.695 - Substitution of receiver as party; abatement of actions.
NRS 78.700 - Sales of encumbered or deteriorating property.
NRS 78.705 - Compensation, costs and expenses of receiver.
NRS 78.710 - Distribution of money to creditors and stockholders.
NRS 78.715 - Acts of majority of receivers effectual; removal and vacancies.
NRS 78.720 - Employees’ liens for wages when corporation insolvent.
NRS 78.730 - Renewal or revival: Procedure; fee; certificate as evidence.
NRS 78.740 - Renewal or revival: Status of corporation.
NRS 78.745 - Action against stockholder for unpaid subscriptions; limitation of action.
NRS 78.746 - Action against stockholder by judgment creditor; limitations.
NRS 78.747 - Liability of another person for debt or liability of corporation.
NRS 78.750 - Service of process on corporations.
NRS 78.755 - Duties: Collection of fees; employment of new technology to aid in performance.
NRS 78.760 - Filing fees: Articles of incorporation.
NRS 78.767 - Filing fees: Certificates of restated articles of incorporation.