§ 564-f-20-2013

564-F:20-2013 Judicial Dissolution. – (a) A court may dissolve a foundation if: (1) The foundation procured its certificate of formation through fraud, duress, or undue influence; (2) The foundation's purposes are not lawful or are contrary to the public policy of this state; (3) The foundation has exceeded or abused its lawful authority under this chapter; (4) The foundation has carried on, conducted, or transacted its affairs in a persistently fraudulent or illegal manner; or (5) The foundation has abused its power contrary to the public policy of this state. (b) A court may dissolve a foundation if: (1) All of the foundation officials consent to the termination; (2) All of the beneficiaries consent to the termination; (3) To the extent that the foundation is a charitable trust, the director of charitable trusts consents to the dissolution; and (4) The dissolution does not violate any of the foundation's material purposes. (c) A court may dissolve a foundation if: (1) Because of circumstances that the founder did not anticipate, the dissolution will further the foundation's purposes; and (2) The dissolution does not violate any of the foundation's material purposes.

cause of circumstances that the founder did not anticipate, the dissolution will further the foundation's purposes; and (2) The dissolution does not violate any of the foundation's material purposes. (d) Any of the following persons may commence a judicial proceeding seeking the foundation's dissolution under this section: (1) A foundation official; (2) A beneficiary unless the governing documents prohibit the beneficiary from commencing a judicial proceeding seeking the foundation's dissolution; (3) To the extent that the foundation is a charitable trust, the director of charitable trusts; and (4) With respect to a dissolution under subsection (a), the attorney general. Source. 2017, 257:47, eff. Oct. 1, 2017.