§ 1803 Receiver Appointment In Dissolution

Corporations Code·California

AI SummaryVerified

This law says a court can put someone in charge of a company if it looks like the company or its owners will be hurt while waiting for a decision on shutting down the company.

Key Takeaways

•A receiver can be appointed if the court thinks the company or its owners will be harmed while waiting for a decision.
•The receiver will manage the company and protect its property during this time.
•The court will hold a hearing and may require security before appointing a receiver.

Example

A small business is fighting in court over whether it should be shut down. The owners are not getting along, and the business is losing money fast.

The court can appoint a receiver to take over the business and manage it until the court decides if the business should be closed. This helps protect the business and its owners from more harm.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1803 Receiver Appointment In Dissolution

If, at the time of the filing of a complaint for involuntary dissolution or at any time thereafter, the court has reasonable grounds to believe that unless a receiver of the corporation is appointed the interests of the corporation and its shareholders will suffer pending the hearing and determination of the complaint, upon the application of the plaintiff, and after a hearing upon such notice to the corporation as the court may direct and upon the giving of security pursuant to Sections 566 and 567 of the Code of Civil Procedure, the court may appoint a receiver to take over and manage the business and affairs of the corporation and to preserve its property pending the hearing and determination of the complaint for dissolution. (Added by Stats. 1975, Ch. 682.)

Last verified: January 10, 2026

Key Terms

receiver involuntary dissolution corporation shareholders security Sections 566 and 567 of the Code of Civil Procedure

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 1803.

§ 1803 Receiver Appointment In Dissolution

Corporations Code·California

AI SummaryVerified

§ 1803 Receiver Appointment In Dissolution

This law says a court can put someone in charge of a company if it looks like the company or its owners will be hurt while waiting for a decision on shutting down the company.

Key Takeaways

•A receiver can be appointed if the court thinks the company or its owners will be harmed while waiting for a decision.
•The receiver will manage the company and protect its property during this time.
•The court will hold a hearing and may require security before appointing a receiver.

Example

A small business is fighting in court over whether it should be shut down. The owners are not getting along, and the business is losing money fast.

The court can appoint a receiver to take over the business and manage it until the court decides if the business should be closed. This helps protect the business and its owners from more harm.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1803 Receiver Appointment In Dissolution

Last verified: January 10, 2026

Key Terms

receiver involuntary dissolution corporation shareholders security Sections 566 and 567 of the Code of Civil Procedure

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 1803.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References