Nevada Business Associations; Securities; Commodities
Action against stockholder by judgment creditor; limitations.
On application to a court of competent jurisdiction by any judgment creditor of a stockholder, the court may charge the stockholders stock with payment of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgment creditor has only the rights of an assignee of the stockholders stock.
Subject to the provisions of NRS 78.747, this section:
Provides the exclusive remedy by which a judgment creditor of a stockholder or an assignee of a stockholder may satisfy a judgment out of the stock of the judgment debtor. No other remedy, including, without limitation, foreclosure on the stockholders stock or a court order for directions, accounts and inquiries that the debtor or stockholder might have made, is available to the judgment creditor attempting to satisfy the judgment out of the judgment debtors interest in the corporation, and no other remedy may be ordered by a court.
Does not deprive any stockholder of the benefit of any exemption applicable to the stockholders stock.
Applies only to a corporation that:
Has fewer than 100 stockholders of record at any time.
Is not a publicly traded corporation or a subsidiary of a publicly traded corporation, either in whole or in part.
Is not a professional corporation as defined in NRS 89.020.
Does not apply to any liability of a stockholder that exists as the result of an action filed before July 1, 2007.
Does not supersede any written agreement between a stockholder and a creditor if the written agreement does not conflict with the corporations articles of incorporation, bylaws or any shareholder agreement to which the stockholder is a party.
As used in this section, rights of an assignee means the rights to receive the share of the distributions or dividends paid by the corporation to which the judgment debtor would otherwise be entitled. The term does not include the rights to participate in the management of the business or affairs of the corporation or to become a director of the corporation.