N.Y. Not-for-Profit Corporation Law § 114: Visitation of supreme court

§ 114. Visitation of supreme court.

Charitable corporations, whether formed under general or special laws,

with their books and vouchers, shall be subject to the visitation and

inspection of a justice of the supreme court, or of any person appointed

by the court for that purpose. If it appears by the verified petition of

a member, director, officer or creditor of any such corporation, that

it, or its directors, officers, members, key persons or agents, have

misappropriated any of the funds or property of the corporation, or

diverted them from the purpose of its incorporation, or that the

corporation has acquired property in excess of the amount which it is

authorized by law to hold, or has engaged in any business other than

that stated in its certificate of incorporation, the court may order

that notice of at least eight days, with a copy of the petition, be

served on the corporation, the attorney general and the persons charged

with misconduct, requiring them to show cause at a time and place

specified, why they should not be required to make and file an inventory

and account of the property, effects and liabilities of such corporation

with a detailed statement of its transactions during the twelve months

next preceding the granting of such order. On the hearing of such

application, the court may make an order requiring such inventory,

account and statement to be filed, and proceed to take and state an

account of the property and liabilities of the corporation, or may

appoint a referee for that purpose. When such account is taken and

stated, after hearing all the parties to the application, the court may

enter a final order determining the amount of property so held by the

corporation, its annual income, whether any of the property or funds of

the corporation have been misappropriated or diverted to any other

purpose than that for which such corporation was incorporated, and

whether such corporation has been engaged in any activity not covered by

its certificate of incorporation. An appeal may be taken from the order

by any party aggrieved to the appellate division of the supreme court,

and to the court of appeals, as in a civil action. No corporation shall

be required to make and file more than one inventory and account in any

one year, nor to make a second account and inventory, while proceedings

are pending for the statement of an account under this section.