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Proceedings upon application of shareholder or director - 15 Pa. Cons. Stat. § 1981

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                               SUBCHAPTER G
                 INVOLUNTARY LIQUIDATION AND DISSOLUTION

     Sec.
     1981.  Proceedings upon application of shareholder or director.
     1982.  Proceedings upon application of creditor.
     1983.  (Reserved).
     1984.  Appointment of receiver pendente lite and other interim
            powers.
     1985.  Liquidating receiver.
     1986.  Qualifications of receivers.
     1987.  Proof of claims.
     1988.  Discontinuance of proceedings; reorganization.
     1989.  Articles of involuntary dissolution.

        Cross References.  Subchapter G is referred to in sections
     1767, 1932, 1976, 1979, 2333, 2334 of this title.
     § 1981.  Proceedings upon application of shareholder or
                director.
        (a)  General rule.--Upon application filed by a shareholder
     or director of a business corporation, the court may entertain
     proceedings for the involuntary winding up and dissolution of
     the corporation when any one of the following is made to appear:
            (1)  The acts of the directors, or those in control of
        the corporation, are illegal, oppressive or fraudulent and
        that it is beneficial to the interests of the shareholders
        that the corporation be wound up and dissolved.
            (2)  The corporate assets are being misapplied or wasted
        and that it is beneficial to the interests of the
        shareholders that the corporation be wound up and dissolved.
            (3)  The directors are deadlocked in the direction of the
        management of the business and affairs of the corporation and
        the shareholders are unable to break the deadlock and that
        irreparable injury to the corporation is being suffered or is
        threatened by reason thereof. The court shall not appoint a
        receiver or grant other similar relief under this paragraph
        if the shareholders by agreement or otherwise have provided
        for the appointment of a provisional director or other means
        for the resolution of a deadlock but the court shall enforce
        the remedy so provided if appropriate.
        (b)  Cross reference.--See section 2536 (relating to
     application by director for involuntary dissolution).

        Cross References.  Section 1981 is referred to in section
     1767 of this title.

Last modified: November 27, 2007