The exodus of small businesses from proprietorship and partnership units into corporate units has brought numerous advantages, but not all attributes of the new form are beneficial. When two or more individuals form a partnership and later find they have reached an impasse, one partner may in most instances bring the relationship to a rapid termination and cause a division of the partnership assets. However, once the corporate form has been adopted, the problem becomes somewhat more difficult. It is the purpose of this comment to examine two possible remedies for a holder, or holders, of one-half of the voting stock in a corporation in which shareholders and directors have reached a deadlock; namely, petitioning a court of equity to appoint a receiver for the purpose of winding up the corporation, or to appoint a temporary receiver pending a determination of the rights of the parties.
E. C. Greenwood S. Ed.,
CORPORATIONS-RECEIVERSHIP AND DISSOLUTION AS REMEDIES FOR MANAGEMENT DEADLOCK,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol47/iss5/6