{"data":{"id":"us-ar/ark.-code-ann.-4-33-1430","jurisdiction":"us-ar","citation":"Ark. Code Ann. § 4-33-1430","heading":"Grounds for judicial dissolution.","body":"(a) The circuit court may dissolve a corporation:\n(1) in a proceeding by the attorney general if it is established that:\n(i) the corporation obtained its articles of incorporation through fraud;\n(ii) the corporation has continued to exceed or abuse the authority conferred upon it by law; or\n(iii) the corporation is a public benefit corporation and the corporate assets are being fraudulently misapplied or wasted.\n(2) except as provided in the articles or bylaws of a religious corporation, in a proceeding by fifty (50) members or members holding five percent (5%) of the voting power, whichever is less, or by a director or any person specified in the articles, if it is established that:\n(i) the directors are deadlocked in the management of the corporate affairs, and the members, if any, are unable to breach the deadlock;\n(ii) the directors or those in control of the corporation have acted, are acting or will act in a manner that is illegal or fraudulent;\n(iii) the members are deadlocked in voting power and have failed, for a period that includes at least two (2) consecutive annual meeting dates, to elect successors to directors whose terms have, or would otherwise have, expired; or\n(iv) the corporate assets are being fraudulently misapplied or wasted.\n(3) in a proceeding by a creditor if it is established that:\n(i) the creditor's claim has been reduced to judgment, the execution on the judgment returned unsatisfied and the corporation is insolvent; or\n(ii) the corporation has admitted in writing that the creditor's claim is due and owing and the corporation is insolvent.\n(4) in a proceeding by the corporation to have its voluntary dissolution continued under court supervision.\n(b) Prior to dissolving a corporation, the court shall consider whether:\n(1) there are reasonable alternatives to dissolution;\n(2) dissolution is in the public interest, if the corporation is a public benefit corporation; and\n(3) dissolution is the best way of protecting the interests of members, if the corporation is a mutual benefit corporation.","path":["Title 4 Business and Commercial Law","Subtitle 3. Corporations and Associations","Chapter 33 The Arkansas Nonprofit Corporation Act of 1993","Subchapter 14 — Dissolution","Part C — Judicial Dissolution"],"source_url":"https://archive.org/download/gov.ar.code/release78.2020.11.06/gov.ar.code.title.04.odt","current_through":"2020-11-06","vintage":"Arkansas Code Release 78 (2020-11), retrieved 2026-09-17; absent from the newer snapshot, which serves other sections of this chapter, so it may since have been repealed or amended","retrieved_at":"2026-09-17T21:07:03Z","sha256":"8d5a03bc7476fafb9e1718ed14ea9bf7fdee3275b21450e5cdc5eadcc07113ff","source_id":"us-ar","stale":false,"prev":"us-ar/ark.-code-ann.-4-33-1423","next":"us-ar/ark.-code-ann.-4-33-1431"},"notice":"GroundRules: Original legal text. Not legal advice."}