Tex.
Civ. Practice & Remedies Code Section 64.072
Limited Duration
(a)
Except as provided by this section, a court may not administer a corporation in receivership for more than three years after the date the receiver is appointed, and the court shall wind up the affairs of the corporation within that period.(b)
A court may, from time to time, extend the duration of a corporate receivership if:(1)
litigation prevents the court from winding up the affairs of the corporation within three years; or(2)
the receiver is operating the corporation as a going concern.(c)
To extend the duration of a corporate receivership, the court must have received an application for the extension and, following notice to all attorneys of record, must conduct a hearing on the extension. As required by the best interests of all concerned parties, the court may prescribe conditions for the extension and extend it for a term within the limits provided by Subsection (d). The court shall enter into its minutes the proper order extending the receivership.(d)
A court may not extend a corporate receivership for more than five years beyond the original three years, except that the court may extend for any additional period the receivership of a corporation organized under former Article 3.05(A)(2), Texas Miscellaneous Corporation Laws Act (Article 1302-3.05, Vernon’s Texas Civil Statutes), Section 2.006, Business Organizations Code, before September 1, 2009, or a railroad corporation organized under the Business Organizations Code or former Title 112, Revised Statutes.
Source:
Section 64.072 — Limited Duration, https://statutes.capitol.texas.gov/Docs/CP/htm/CP.64.htm#64.072 (accessed Apr. 29, 2024).
