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LLC disputes frequently lead to the court’s appointment of a receiver under California Code of Civil Procedure section 564. The receiver effectively steps into the shoes of the LLC’s manager, and calls the shots regarding the LLC’s operations and assets.
Here is a quick overview of receiverships for LLCs:
The receiver’s role
The receiver’s role is to preserve the status quo between the parties while litigation is pending. Receivership is a provisional equitable remedy. Receivership is considered an “ancillary” remedy which does not effect the ultimate outcome of the action.