55A-14-30. Grounds for judicial dissolution.
(a) The superior court may dissolve a corporation:
(1) In a proceeding by the Attorney General if it is established that:
a. The corporation obtained its articles of incorporation through fraud; or
b. The corporation has, after written notice by the Attorney General given at least 20 days prior thereto, continued to exceed or abuse the authority conferred upon it by law;
(2) In a proceeding by a member or director, if it is established that:
a. The directors are deadlocked in the management of the corporate affairs, and the members, if any, are unable to break the deadlock;
b. The directors or those in control of the corporation have acted, are acting, or will act in a manner that is illegal, oppressive, or fraudulent;
c. The members are deadlocked in voting power and have failed, for a period that includes at least two consecutive annual meeting dates, to elect successors to directors whose terms have, or would otherwise have, expired;
d. The corporate assets are being misapplied or wasted; or
e. The corporation is no longer able to carry out its purposes.
(3) In a proceeding by a creditor if it is established that:
a. The creditor's claim has been reduced to judgment and execution on the judgment has been returned unsatisfied; or
b. The corporation has admitted in writing that the creditor's claim is due and owing and the corporation is insolvent.
(4) In a proceeding by the corporation to have its voluntary dissolution continued under court supervision.
(b) Prior to dissolving a corporation, the court shall consider whether:
(1) There are reasonable alternatives to dissolution;
(2) Dissolution is in the public interest, if the corporation is a charitable or religious corporation; and
(3) Dissolution is reasonably necessary for the protection of the rights or interests of the members, if any. (1955, c. 1230; 1985 (Reg. Sess., 1986), c. 801, s. 42; 1993, c. 398, s. 1.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 55A - North Carolina Nonprofit Corporation Act
§ 55A-14-01 - Dissolution by incorporators or directors prior to commencement of activities.
§ 55A-14-02 - Dissolution by directors, members, and third persons.
§ 55A-14-03 - Plan of dissolution.
§ 55A-14-04 - Articles of dissolution.
§ 55A-14-05 - Revocation of dissolution.
§ 55A-14-06 - Effect of dissolution.
§ 55A-14-07 - Known claims against dissolved corporation.
§ 55A-14-08 - Unknown and certain other claims against dissolved corporation.
§ 55A-14-09 - Enforcement of claims.
§ 55A-14-20 - Grounds for administrative dissolution.
§ 55A-14-21 - Procedure for and effect of administrative dissolution.
§ 55A-14-22 - Reinstatement following administrative dissolution.
§ 55A-14-23 - Appeal from denial of reinstatement.
§ 55A-14-24 - Inapplicability of Administrative Procedure Act.
§ 55A-14-30 - Grounds for judicial dissolution.
§ 55A-14-31 - Procedure for judicial dissolution.
§ 55A-14-33 - Decree of dissolution.
§ 55A-14-40 - Disposition of amounts due to unavailable members and creditors.