"I Say You Are No Longer A Board"

Allen Matkins
Contact

Several Nevada statutes provide for the appointment of a receiver or custodian of a corporation, including NRS 32.010, NRS 78.347, NRS 78.630 and NRS 78.650.  Yesterday, the Ninth Circuit Court of Appeals addressed whether directors of a Nevada corporation could cause the filing of a voluntary Chapter 11 bankruptcy petition after the appointment of a receiver.  In re Sino Clean Energy, Inc., (9th Cir. Case No. No. 17-15316, Aug. 27, 2018).  The answer was clear that they do not:

"Applying Nevada law to the facts in the record, the individuals who filed the bankruptcy petition were not members of the board of directors of SCEI at the time they filed the petition, and they were not authorized to file a bankruptcy petition on behalf of SCEI."

One can almost here an echo of Oliver Cromwell's famous admonition to the Rump Parliament: "You are no longer a Parliament, I say you are no Parliament".

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins | Attorney Advertising

Written by:

Allen Matkins
Contact
more
less

Allen Matkins on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide