5988 - Discontinuance of proceedings; reorganization.
§ 5988. Discontinuance of proceedings; reorganization. The proceedings under this subchapter may be discontinued at any time during the winding up proceedings, in the following manner: (1) If the proceedings shall have been instituted by a member or director and it is made to appear to the court that the deadlock in the corporate affairs has been broken or the management or control of the corporation has been changed, the court, in its discretion, may dismiss the proceeding and direct the receiver to redeliver to the corporation all its remaining assets. (2) If the proceedings shall have been instituted by a creditor and it is made to appear that the debts of the corporation have been paid or provided for, and that there remain or can be obtained sufficient funds to enable the corporation to resume its business, the court, in its discretion, may dismiss the proceeding and direct the receiver to redeliver to the corporation all its remaining assets. (3) When a compromise or reorganization of the corporation is proposed, whether the proceedings shall have been instituted by a member or director or by a creditor, the court, upon the summary application of any member, director, creditor, or receiver, may order a meeting of the creditors, or members to be summoned in such manner as the court may direct. If a majority in number, representing 75% in value of the creditors or if 75% of the members present in person, or if a majority in number, representing 75% in value of any class of creditors, or if 75% of the members of any class present in person, as the case may be, agree to any compromise or reorganization of the corporation, such compromise or reorganization, if approved by the court as fair and feasible, shall be binding on all creditors or on all members, or both, or on the class of creditors or class of members, or both, as the case may be, and also on the corporation and its receiver, if any. (4) If the proceedings shall have been instituted by a superior religious organization and it is made to appear that appropriate arrangements for the conduct of the affairs of the corporation have been made, the court, in its discretion, may dismiss the proceedings and direct the receiver to redeliver to the corporation its remaining assets.