Inheriting a Business and Worried About Assets in the Meantime? Is a West Palm Beach Receivership the Answer?

Was a relative involved in a joint venture or other business  operation with other parties? Are you now in the process of administering the estate of a person with holdings in a closely held corporation in West Palm Beach? You may be concerned that assets are being wasted in your loved one’s absence or that other abuses are going on. Do you know what a West Palm Beach receivership does? Check out this case out of the Third District Court of Appeals in and for Miami-Dade County to learn more.

Receivership

• Do you know what a receiver does?
• A receiver is an individual chosen by the West Palm Beach court to take control of the assets and business operations of a corporation or other joint venture.
• When are these common?
• When disputes and infighting erupt between parties a West Palm Beach court may feel that a receiver is the only way to ensure proper actions for the benefit of all shareholders.
• Do not forget often there are minor shareholders who will suffer due to fights among major shareholders.
• A receivership may be an appropriate remedy when you have one of the major shareholders die.
• After all his or her interest does not die rather it is something that can and will beinherited.
• Thus the beneficiaries of a West Palm Beach estate may have standing to request a receivership to safeguard business assets.
• Do you know which court you will have to petition?
• Should you go to probate court or civil court to request the receivership?
• Furthermore can the other owners appeal a finding that a receivership is proper?
• Check out this case out of the Third District Court of Appeals to learn more on appealing a receivership.

Romay v. Caribevision Holdings Inc.

• This was an appeal from a non final order that took place in the Third District Court of Appeal in Miami.
• The Appellant felt that the court had erred in appointing a receiver.
• This was done after some questionable transactions resulted in a large change in the equity holdings of the company.
• The Appellees felt that a receivership was the best way to ensure assets were protected and managed with due care throughout the court disputes.
• The appellate court did not really take the time to agree or disagree, and held that the standard on review is abuse of discretion.
• Do you know what that means?
• Basically as long as the trial court was acting within its bounds and powers the appellate court was not going to question such decisions.

Want to learn more about receiverships in West Palm Beach?

Check out the entire case of Romay v. Caribevision Holdings, Inc. which was filed in the Third District Court of Appeals on July 29, 2015, Case No. 3D15-922.