Arkansas § 4-33-1430 - Grounds for judicial dissolution.

§ 4-33-1430. Grounds for judicial dissolution.

The circuit court may dissolve a corporation: in a proceeding by the attorney general if it is established that: the corporation obtained its articles of incorporation through fraud; the corporation has continued to exceed or abuse the authority conferred upon it by law; or the corporation is a public benefit corporation and the corporate assets are being fraudulently misapplied or wasted. except as provided in the articles or bylaws of a religious corporation, in a proceeding by fifty (50) members or members holding five percent (5%) of the voting power, whichever is less, or by a director or any person specified in the articles, if it is established that: the directors are deadlocked in the management of the corporate affairs, and the members, if any, are unable to breach the deadlock; the directors or those in control of the corporation have acted, are acting or will act in a manner that is illegal or fraudulent; the members are deadlocked in voting power and have failed, for a period that includes at least two (2) consecutive annual meeting dates, to elect successors to directors whose terms have, or would otherwise have, expired; or the corporate assets are being fraudulently misapplied or wasted. in a proceeding by a creditor if it is established that: the creditor's claim has been reduced to judgment, the execution on the judgment returned unsatisfied and the corporation is insolvent; or the corporation has admitted in writing that the creditor's claim is due and owing and the corporation is insolvent. in a proceeding by the corporation to have its voluntary dissolution continued under court supervision. Prior to dissolving a corporation, the court shall consider whether: there are reasonable alternatives to dissolution; dissolution is in the public interest, if the corporation is a public benefit corporation; and dissolution is the best way of protecting the interests of members, if the corporation is a mutual benefit corporation.