Section 9-B. Actions or special proceedings by superintendent or attorney-general  


Latest version.
  • 1. In addition to any  action  or  special  proceeding  which  may  be
      maintained  by  either  of them under any other section of this chapter,
      the superintendent or the attorney-general may  maintain  an  action  or
      special proceeding:
        (a)  To annul the corporate existence or dissolve a corporation formed
      under any article of this chapter or formed under any other  statute  or
      special  act  having  as its purpose or among its purposes a purpose for
      which a corporation may be formed under  this  chapter  that  has  acted
      beyond  its  capacity  or  power  or  to  restrain  it from the doing of
      unauthorized business.
        (b) To annul the corporate existence or dissolve any such  corporation
      that has not been duly formed.
        (c)  To  restrain  any  person  or  persons  from  acting  as  such  a
      corporation within this state without being duly  incorporated  or  from
      exercising  in this state any corporate rights, privileges or franchises
      not granted to them by the law of the state.
        (d) To dissolve a corporation under section nine-c.
        2. In any action or special proceeding brought under this section:
        (a) If an action, it is triable by jury as a matter of right.
        (b) The court may confer immunity in accordance with the provisions of
      section 50.20 of the criminal procedure law.
        (c) A temporary  restraining  order  to  restrain  the  commission  or
      continuance  of  the unlawful acts which form the basis of the action or
      special proceeding may be granted upon proof,  by  affidavit,  that  the
      defendant or defendants have committed or are about to commit such acts.
      Application for such restraining order may be made ex parte or upon such
      notice as the court may direct.
        (d)  When  final  judgment  in  such  action  or special proceeding is
      rendered against the defendant or defendants, the court may  direct  the
      costs  to be collected by execution against any or all of the defendants
      or by order of attachment or other process against  the  person  of  any
      director or officer of a corporate defendant.
        (e)  In connection with any such proposed action or special proceeding
      the superintendent or the attorney-general  may  take  proof  and  issue
      subpoenas in accordance with the civil practice law and rules.