Peck v. Jonathan Michael Builders, Inc.

Summary

The Rhode Island Supreme Court affirmed the appointment of a permanent receiver to supervise the liquidation of an insolvent corporation whose shareholders had unanimously voted to dissolve it. The court held that the Superior Court had authority under the Rhode Island Business Corporation Act to appoint a liquidating receiver under § 7-1.2-1314(a)(1)(vi), even though the corporation was insolvent.

Holdings

1. The Superior Court may supervise the liquidation of an insolvent corporation under G.L. 1956 § 7-1.2-1314(a)(1)(vi) by appointing a receiver after the corporation has adopted a resolution to dissolve under § 7-1.2-1302.

Questions Presented

1. Whether the Rhode Island Superior Court had statutory authority under the Rhode Island Business Corporation Act to appoint a receiver to supervise liquidation of an insolvent corporation after its shareholders voted to dissolve it.
2. Whether the court needed to reach the Superior Court's alternative assertion of inherent authority to appoint a receiver.

Disposition

affirmed