MARVIN MANDEL, Governor

1665

corporation's name while its charter is
forfeited.

For the definition of "assets," see §1—101.

3-514. FORFEITURE OF CHARTER FOR MISUSE OF POWERS.

(A)    AUTHORIZATION OF ATTORNEY GENERAL TO INSTITUTE
PROCEEDINGS.

AT ANY TIME, THE DEPARTMENT MAY AUTHORIZE THE
ATTORNEY GENERAL TO INSTITUTE PROCEEDINGS AGAINST A
CORPORATION TO DETERMINE WHETHER THE CORPORATION HAS
ABUSED, MISUSED, OR FAILED TO USE ITS POWERS AND
FRANCHISES IN A MANNER WHICH, IN THE PUBLIC INTEREST,
WOULD MAKE PROPER THE FORFEITURE OF ITS CHARTER.

(B)   HOW PROCEEDINGS INSTITUTED.

IF AUTHORIZED BY THE DEPARTMENT, THE ATTORNEY
GENERAL MAY PETITION A COURT OF EQUITY FOR FORFEITURE OF
THE CHARTER AND DISSOLUTION OF THE CORPORATION. THE
PETITION SHALL STATE THE FACTS ON WHICH THE FORFEITURE
AND DISSOLUTION OF THE CORPORATION IS SOUGHT.

(C)       ORDER OF COURT.

IN ITS ORDER, THE COURT SHALL:

(1)    FIND THAT NO LEGAL CAUSE FOR FORFEITURE
EXISTS, AND DISMISS THE PETITION;

(2)   DIRECT THE CORPORATION TO REMEDY ONE OR
MORE GRIEVANCES, ON PENALTY OF FORFEITURE OF THE CHARTER
IF THEY ARE NOT REMEDIED WITHIN THE TIME SET BY THE
ORDER; OR

(3) (I) FIND THAT LEGAL CAUSE FOR FORFEITURE
HAS BEEN SHOWN AND THAT THE PUBLIC INTEREST REQUIRES A
FORFEITURE;

(II)    DECLARE THE CHARTER FORFEITED AND THE
CORPORATION DISSOLVED; AND

(III)   APPOINT A RECEIVER OF THE ASSETS OF THE
CORPORATION.

REVISOR'S NOTE: This section presently appears as
Art. 23, §84.

It is placed here since the proceedings for
revival of a charter forfeited for nonpayment
of taxes or failure to file an annual report
do not apply in this situation.