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This entry was published on 2017-06-02
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SECTION 114
Visitation of supreme court
Not-for-Profit Corporation (NPC) CHAPTER 35, ARTICLE 1
§ 114. Visitation of supreme court.

Charitable corporations, whether formed under general or special laws,
with their books and vouchers, shall be subject to the visitation and
inspection of a justice of the supreme court, or of any person appointed
by the court for that purpose. If it appears by the verified petition of
a member, director, officer or creditor of any such corporation, that
it, or its directors, officers, members, key persons or agents, have
misappropriated any of the funds or property of the corporation, or
diverted them from the purpose of its incorporation, or that the
corporation has acquired property in excess of the amount which it is
authorized by law to hold, or has engaged in any business other than
that stated in its certificate of incorporation, the court may order
that notice of at least eight days, with a copy of the petition, be
served on the corporation, the attorney general and the persons charged
with misconduct, requiring them to show cause at a time and place
specified, why they should not be required to make and file an inventory
and account of the property, effects and liabilities of such corporation
with a detailed statement of its transactions during the twelve months
next preceding the granting of such order. On the hearing of such
application, the court may make an order requiring such inventory,
account and statement to be filed, and proceed to take and state an
account of the property and liabilities of the corporation, or may
appoint a referee for that purpose. When such account is taken and
stated, after hearing all the parties to the application, the court may
enter a final order determining the amount of property so held by the
corporation, its annual income, whether any of the property or funds of
the corporation have been misappropriated or diverted to any other
purpose than that for which such corporation was incorporated, and
whether such corporation has been engaged in any activity not covered by
its certificate of incorporation. An appeal may be taken from the order
by any party aggrieved to the appellate division of the supreme court,
and to the court of appeals, as in a civil action. No corporation shall
be required to make and file more than one inventory and account in any
one year, nor to make a second account and inventory, while proceedings
are pending for the statement of an account under this section.