§ 12622 Board Deadlock Provisional Director

This law lets a court name a temporary director when a corporation's board is deadlocked, and it says the same rules that apply to other temporary directors also apply here.

Key Takeaways

•A deadlocked board can trigger the court to appoint a temporary director.
•The temporary director follows the same rules as other provisional directors.
•This applies only when the deadlock matches the specific condition in Section 12620(b)(2).

Example

A small family-owned company has two co-owners who both sit on the board, and they can't agree on any major decision, causing a deadlock.

Because the board is deadlocked, the court can appoint a provisional director to help break the tie and keep the company running.

If the ground for the complaint for involuntary dissolution of the corporation is a deadlock in the board as set forth in paragraph (2) of subdivision (b) of Section 12620 the court may appoint a provisional director. The provisions of subdivision (d) of Section 12365 apply to any such provisional director so appointed. (Added by Stats. 1982, Ch. 1625, Sec. 3. Operative January 1, 1984.)

This law lets a court name a temporary director when a corporation's board is deadlocked, and it says the same rules that apply to other temporary directors also apply here.

Key Takeaways

•A deadlocked board can trigger the court to appoint a temporary director.
•The temporary director follows the same rules as other provisional directors.
•This applies only when the deadlock matches the specific condition in Section 12620(b)(2).

Example

A small family-owned company has two co-owners who both sit on the board, and they can't agree on any major decision, causing a deadlock.

Because the board is deadlocked, the court can appoint a provisional director to help break the tie and keep the company running.

Key Takeaways

Example

Key Terms

References

§ 12622 Board Deadlock Provisional Director

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References