{"data":{"id":"us-ky/krs-273.333","jurisdiction":"us-ky","citation":"KRS 273.333","heading":"Procedure in liquidation of corporation by court.","body":"(1) In a proceeding to liquidate the assets and affairs of a corporation, the court shall\nhave the power to issue injunctions, to appoint a receiver or receivers pendente lite\nwith such powers and duties as the court from time to time may direct, and to take\nsuch other proceedings as may be requisite to preserve the corporate assets\nwherever situated, and to carry on the affairs of the corporation until a full hearing\ncan be had.\n(2) After a hearing had upon such notice as the court may direct to be given to al l\nparties to the proceedings and to any other parties in interest designated by the\ncourt, the court may appoint a liquidating receiver or receivers with authority to\ncollect the assets of the corporation and, as appropriate, to enter into agreements\nwith creditors for the satisfaction of the corporation's liabilities. Such liquidating\nreceiver or receivers shall have authority, subject to the order of the court, to sell,\nconvey and dispose of all or any part of the assets of the corporation wherever\nsituated, either at public or private sale. The order appointing such liquidating\nreceiver or receivers shall state their powers and duties. Such powers and duties\nmay be increased or diminished at any time during the proceedings.\n(3) The assets of the corporati on or the proceeds resulting from a sale, conveyance, or\nother disposition thereof shall be applied and distributed as follows:\n(a) All costs and expenses of the court proceedings and all liabilities and\nobligations of the corporation shall be paid, satisf ied and discharged, or\nadequate provisions shall be made therefor;\n(b) Assets held by the corporation upon condition requiring return, transfer or\nconveyance, which condition occurs by reason of the dissolution or\nliquidation, shall be returned, transferred or conveyed in accordance with such\nrequirements;\n(c) Assets received and held by the corporation subject to limitations permitting\ntheir use only for charitable, religious, eleemosynary, benevolent, educational\nor similar purposes, but not held upon a c ondition requiring return, transfer or\nconveyance by reason of the dissolution or liquidation, shall be transferred or\nconveyed to one (1) or more domestic or foreign corporations, societies or\norganizations engaged in activities substantially similar to t hose of the\ndissolving or liquidating corporation as the court may direct;\n(d) Other assets, if any, shall be distributed in accordance with the provisions of\nthe articles of incorporation or by the bylaws to the extent that the articles of\nincorporation or bylaws determine the distributive right of members, or any\nclass or classes of members, or provide for distribution to others;\n(e) Any remaining assets may be distributed to such persons, societies,\norganizations or domestic or foreign corporations, whether for profit or not for\nprofit, specified in the plan of distribution adopted as provided in KRS\n273.161 to 273.390, or where no plan of distribution has been adopted, as the\ncourt may direct.\n(4) The court shall have power to allow, from time to time, a s expenses of the\nliquidation, compensation to the receiver or receivers and to attorneys in the\nproceeding, and to direct the payment thereof out of the assets of the corporation or\nthe proceeds of any sale or disposition of such assets.\n(5) A receiver of a corporation appointed under the provisions of this section shall have\nauthority to sue and defend in all courts in his own name as receiver of such\ncorporation. The court appointing such receiver shall have exclusive jurisdiction of\nthe corporation and its property, wherever situated.","path":["KRS Chapter 273"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40441","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:24Z","sha256":"3d7cb4276824e00592adcaee7f7341436cd0f92738a0a571fdc2214b14cfe961","source_id":"us-ky","stale":false,"prev":"us-ky/krs-273.330","next":"us-ky/krs-273.337"},"notice":"GroundRules: Original legal text. Not legal advice."}