- The Court of Chancery, upon application of any stockholder, may appoint custodians or, if the corporation is insolvent, receivers for the corporation when:
- The stockholders are so divided that they have failed to elect successors to directors whose terms have expired or would have expired upon qualification of their successors; or
- The directors are so divided that the required vote for board action cannot be obtained, the stockholders are unable to terminate this division, and, as a result, the business of the corporation is threatened with irreparable injury; or
- The corporation has abandoned its business and has failed within a reasonable time to take steps to dissolve, liquidate or distribute its assets.
- A custodian has all the powers and title of a receiver appointed under §291, but the custodian is to continue the business of the corporation rather than liquidate, except when the Court orders otherwise or in cases arising under paragraph (a)(3) or §352(a)(2).
- In the case of a charitable nonstock corporation, the applicant shall provide a copy of the application to the Attorney General within one week of its filing.