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This entry was published on 2014-09-22
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SECTION 1104
Petition in case of deadlock among directors or shareholders
Business Corporation (BSC) CHAPTER 4, ARTICLE 11
§ 1104. Petition in case of deadlock among directors or shareholders.

(a) Except as otherwise provided in the certificate of incorporation
under section 613 (Limitations on right to vote), the holders of shares
representing one-half of the votes of all outstanding shares of a
corporation entitled to vote in an election of directors may present a
petition for dissolution on one or more of the following grounds:

(1) That the directors are so divided respecting the management of the
corporation's affairs that the votes required for action by the board
cannot be obtained.

(2) That the shareholders are so divided that the votes required for
the election of directors cannot be obtained.

(3) That there is internal dissension and two or more factions of
shareholders are so divided that dissolution would be beneficial to the
shareholders.

(b) If the certificate of incorporation provides that the proportion
of votes required for action by the board, or the proportion of votes of
shareholders required for election of directors, shall be greater than
that otherwise required by this chapter, such a petition may be
presented by the holders of shares representing more than one-third of
the votes of all outstanding shares entitled to vote on non-judicial
dissolution under section 1001 (Authorization of dissolution).

(c) Notwithstanding any provision in the certificate of incorporation,
any holder of shares entitled to vote at an election of directors of a
corporation, may present a petition for its dissolution on the ground
that the shareholders are so divided that they have failed, for a period
which includes at least two consecutive annual meeting dates, to elect
successors to directors whose terms have expired or would have expired
upon the election and qualification of their successors.