Evening journal., 1895-03-26
THE GENERAL ASSEMBLY
What the Law Makers Did in
Dover Yesterday.
THE WORK OF HOUSE AND SENATE

GHfV6 En6 OhAHAAA AtNHAAAOn tA Inb At
torneys of Every Corporation Doing
Business in This State Before IL is Per-
mitted to miscellaneous Legisla-
tion.
staf Correspondence Evening Journal.
DOVER, March 90 Representative
Walker will introduce an act entitled
IAN act relating to the appointment OF
receivers for insolvent corporations "
The bill provides for the appointment
OF receiver or recall vers by the chan
cellor to take charge Of and conduct the
business and affairs of q corporation,
upon the application of any creditor or
party whose right TO or interest in the
property or fnDds OF the corporation is
probable, and when 1t Is shown that the
property or funds are in danger OF being
lost. removed or materially injured.
This also may be done b. any stakeholder
Of an insolvent corporation After the
filing of such bin or petition no sales.
assignments, transfers, mortgages nor
conveyanoes of real or personal estate;
nor any Judgment conferred by the
corporation shall avail as gsinst the
receiver or receivers appointed on such
bill or petition, and all matters touching
auoh corporation shall, after that time
remain in statu quo.
Upon the filing OF the bill or petition,
the chancellor shall appoint q time,
within six days thereafter. not Including
Sundays for hearing aud passing upon
the application Notice of such heating
shall be published for at least three days
in some newspaper IN general circulation
at the place wherein Is located the
principal place OF business of the cor
porstion Ii the chancellor grant the
application, he shall appoint a receiver
to take charge OF the business who shall
enter upon his dutiea so soon as be givea
such security IS tho court may require,
for the faithful performance Of bis otices
and the due accounting for all moneys
received by him director, trustee OF
other officer of the cor poration, or any
of its stockholders, my be appointed q
receiver.
The receiver, fIon the time Of his
having filed the security required, shall
be invested with ali the estate oil the
corporation and shall have this wsr ia
collect all outstanding debts sud do all
other acts which might be dons by the
corporation. Upon the appointment oil
the receiver, the chancellor shall appoint
two persons who shall appraise al
the property OF the corporation and make
return under their oyth, TO the couri
within thirty days after his appointment
The inventory shall include all auct
things as are required bY Law to be ia
cluded Ia the inventory flied by appraisers
of deeedent's estate. After the ap-
praisers shall have made their return. Cd,
receiver or receivers shall proceed tx
settle the effects and debts Of the cor
porstion.
After appointment and fling Of re
quired security, the following duties ara
incumbent upon the receiver:
First After examination Of the books
vouchers, etc, of the corporation, hi
shall make return to the court Of al
debts and credits due or belonging Il
the corporation, and also OF it
liabilities, with list OF the stockholders
the number of shares held BY each auC
the amount paid thereon The return
must be made within sixty days after
the filing OF the bond
Second He must slso make publica
tion Of the same in regularly published
newspaper Of the business place OF tn
corporation, Of the above lists. with
notice to all creditors to present thei
claims within six months after hi
appointment. II any such creditor fai
to do this, the receiver be having sucl
proper notice shall be relieved from Al
liability for such debts
Third He shall, within seven month
after her appointment, cali 3 genera
meeting Of the creditors, who shall b
notified by such publication as th
chancellor may direct, to sit at a cartGi
time and place, to hear and pass upo
the validity Of all claims presente
against the corporation From tn
receivers decision as to tbs mode 0
distribution, an appeal will lie TO th
chancellor, If taken within thirty day
after its rendition.
The receiver shall be subject to Oh
control OF the court as to the time Q
making dividends, both to creditors an
directors. and as to the time Of renderin
his account and may be removed at an
time
4th. After 1t has bsen fully decide
among whom the assets are to be distrlI
uted, the receiver shall proceed to pa
the debts according to tbs priorities
those having actual liens upon I'll
property and funds ANY surplus r
naming shall be distributed pro raj
among creditors not having liens
III the chancellor shall believe it be-
for the interests OF gll concerned
allow the receiver to proceed with s1
carry on the business for awhile. he sha
issue orders to that effect.
For this purpose he may permit Il
receiver to borrow money and issI
receivers certificates as evidence
indebtedness, which may be FIRST liel
upon the assets OF the corporation, ps,
able to all procured claims against Il
same II the chancellor shall, at al
time, be satisfied that the corporation c.
be managed to more advantage by
officers be may make orders to that effsS
The receiver shall be entitled to SUI
commission as the court shall allow,
well as for reasonable counsel fees ~
necessary cost and expenses Of &
receivorship, together with oommissio
and counsel fees, shall be paid ont Of I
assets before the same are applicable
the debts of said insolvent corporation.
When the receiver or receivers sh
have, In the opinion of the chanoellt
fully performed bis or their duty or duti
with respect 20 his or their office and
or their duty is at an end, the chancell
may make such order for his or tn
discharge as he may deem proper.