The 2023 Florida Statutes (including Special Session C)

Title XXXVI
BUSINESS ORGANIZATIONS

Chapter 607
FLORIDA BUSINESS CORPORATION ACT

View Entire Chapter

F.S. 607.1432

607.1432 Receivership or custodianship.—

(1) A court in a judicial proceeding brought under s. 607.1430 may appoint one or more receivers to wind up and liquidate, or one or more custodians to manage, the business and affairs of the corporation. The court shall hold a hearing, after notifying all parties to the proceeding and any interested persons designated by the court, before appointing a receiver or custodian. The court appointing a receiver or custodian has exclusive jurisdiction over the corporation and all of its property wherever located.

(2) The court may appoint a natural person or an eligible entity authorized to act as a receiver or custodian. The eligible entity may be a domestic eligible entity or a foreign eligible entity authorized to transact business in this state. The court may require the receiver or custodian to post bond, with or without sureties, in an amount the court directs.

(3) The court shall describe the powers and duties of the receiver or custodian in its appointing order, which may be amended from time to time. Among other powers:

(a) The receiver:

1. May dispose of all or any part of the assets of the corporation wherever located, at a public or private sale, if authorized by the court; and

2. May sue and defend in his, her, or its own name as receiver of the corporation in all courts of this state.

(b) The custodian may exercise all of the powers of the corporation, through or in place of its board of directors or officers, to the extent necessary to manage the affairs of the corporation in the best interests of its shareholders and creditors.

(4) The court during a receivership may redesignate the receiver a custodian, and during a custodianship may redesignate the custodian a receiver, if doing so is determined by the court to be in the best interests of the corporation and its shareholders and creditors.

(5) The court from time to time during the receivership or custodianship may order compensation paid and expense disbursements or reimbursements made to any receiver or custodian and his, her, or its counsel from the assets of the corporation or proceeds from the sale of the assets.

(6) The court has jurisdiction to appoint an ancillary receiver for the assets and business of a corporation. The ancillary receiver shall serve ancillary to a receiver located in any other state, whenever the court deems that circumstances exist requiring the appointment of such a receiver. The court may appoint such an ancillary receiver for a foreign corporation even though no receiver has been appointed elsewhere. Such receivership shall be converted into an ancillary receivership when an order entered by a court of competent jurisdiction in the other state provides for a receivership of the corporation.

History.—s. 133, ch. 89-154; s. 35, ch. 97-102; s. 191, ch. 2019-90; s. 52, ch. 2020-32.

F.S. 607.1432 on Google Scholar

F.S. 607.1432 on Casetext

Amendments to 607.1432

Arrestable Offenses / Crimes under Fla. Stat. 607.1432

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 607.1432.

Annotations, Discussions, Cases:

Cases from cite.case.law:

GRAHAM, v. R. UPHOLD, 245 So. 3d 964 (Fla. App. Ct. 2018)

. . . Uphold moved under sections 607.1431(3) and 607.1432, Florida Statutes, for the court to appoint a custodian . . . preserve BBI's assets and to carry on and manage its business and affairs" under sections 607.1431(3) and 607.1432 . . . Similarly, the trial court relied on its authority under section 607.1432 to appoint the custodian. . . . appointment of a custodian, the court did not have the authority under either section 607.1431(3) or section 607.1432 . . .

ROMAY, v. CARIBEVISION HOLDINGS, INC., 173 So. 3d 1055 (Fla. Dist. Ct. App. 2015)

. . . Caribevision Holdings, Inc., 147 So.3d 125 (Fla. 3d DCA 2014), sections 607.1432(6) and 608.4492(6) of . . .

ROMAY, v. CARIBEVISION HOLDINGS, INC., 147 So. 3d 125 (Fla. Dist. Ct. App. 2014)

. . . Section 607.1432(6), Florida Statutes (2013), states: The court has jurisdiction to appoint an ancillary . . .

TRANS HEALTHCARE, INC. v. CREEKMORE,, 137 So. 3d 1112 (Fla. Dist. Ct. App. 2014)

. . . statutory “ancillary receivership” provision available under the Florida Business Corporation Act, section 607.1432 . . .

GRANADA LAKES VILLAS CONDOMINIUM ASSOCIATION, INC. v. METRO- DADE INVESTMENTS CO., 125 So. 3d 756 (Fla. 2013)

. . . group home facility owned and operated by a corporation or partnership” under certain circumstances); § 607.1432 . . .

MATHES, n k a v. MATHES,, 91 So. 3d 207 (Fla. Dist. Ct. App. 2012)

. . . judgment, this divorce had transformed into something similar to a receivership pursuant to section 607.1432 . . .

PHILLIPS, v. GREENE,, 994 So. 2d 371 (Fla. Dist. Ct. App. 2008)

. . . Section 607.1432(1), Florida Statutes (2007), allows for the appointment of a corporate receiver or custodian . . . However, section 607.1432(1) requires notice to all interested parties and a hearing before a receiver . . .

E. BATUR, v. SIGNATURE PROPERTIES OF NORTHWEST FLORIDA, INCORPORATED, a H. LLC, a LLC, a, 903 So. 2d 985 (Fla. Dist. Ct. App. 2005)

. . . and conferring broad powers on the custodian, the trial court entered an order pursuant to section 607.1432 . . . Section 607.1432(3)(b), Florida Statutes (2002), defines a custodian's powers as "all of the powers of . . .

BOOM, v. YLB INVESTMENTS,, 687 So. 2d 964 (Fla. Dist. Ct. App. 1997)

. . . The custodian was appointed pursuant to section 607.1432, Florida Statutes (1995), which does not mandate . . .

In SUNRISE ISLAND, LTD. SUNRISE ISLAND, LTD. v. GOLDMAN SACHS COMPANY, M. BALLARD, IRA No. In LIMITED GAMING OF AMERICA INC. LIMITED GAMING OF AMERICA INC. v. GOLDMAN SACHS COMPANY, M. BALLARD, IRA No., 203 B.R. 171 (Bankr. N.D. Okla. 1996)

. . . . § 607.1432, 607.0832. . . . See Fla.Stat. § 607.1432. . . .

BRICKELL STATION TOWERS, INC. v. JDC AMERICA CORPORATION,, 560 So. 2d 1391 (Fla. Dist. Ct. App. 1990)

. . . See §§ 660.41, 607.281, 607.1432, Fla. Stat. (1989). . . .