§ 12623 Receiver Appointment In Dissolution

• •A court can appoint a receiver when a dissolution case starts or later if harm is likely.
• •The receiver takes control of the company’s affairs and property to protect it.
• •Notice must be given and security posted, except the Attorney General is exempt from posting security.

A family-owned bakery is being sued to shut it down. While the case is still in court, the judge appoints a receiver to take over the bakery, keep it open, pay the bills, and protect its assets until the court decides whether to dissolve the business.

Because the court believes the bakery could suffer losses if it stays closed during the lawsuit, it can appoint a receiver to manage the bakery’s day‑to‑day operations and preserve its property. The receiver steps in, makes sure the business keeps running, and the court must give notice and require security, though the Attorney General does not need to post security.