N.Y. Business Corporation Law § 1104: Petition in case of deadlock among directors or shareholders

§ 1104. Petition in case of deadlock among directors or shareholders.

(a) Except as otherwise provided in the certificate of incorporation

under section 613 (Limitations on right to vote), the holders of shares

representing one-half of the votes of all outstanding shares of a

corporation entitled to vote in an election of directors may present a

petition for dissolution on one or more of the following grounds:

(1) That the directors are so divided respecting the management of the

corporation's affairs that the votes required for action by the board

cannot be obtained.

(2) That the shareholders are so divided that the votes required for

the election of directors cannot be obtained.

(3) That there is internal dissension and two or more factions of

shareholders are so divided that dissolution would be beneficial to the

shareholders.

(b) If the certificate of incorporation provides that the proportion

of votes required for action by the board, or the proportion of votes of

shareholders required for election of directors, shall be greater than

that otherwise required by this chapter, such a petition may be

presented by the holders of shares representing more than one-third of

the votes of all outstanding shares entitled to vote on non-judicial

dissolution under section 1001 (Authorization of dissolution).

(c) Notwithstanding any provision in the certificate of incorporation,

any holder of shares entitled to vote at an election of directors of a

corporation, may present a petition for its dissolution on the ground

that the shareholders are so divided that they have failed, for a period

which includes at least two consecutive annual meeting dates, to elect

successors to directors whose terms have expired or would have expired

upon the election and qualification of their successors.