Provisional Director Los Angeles
A provisional director in Los Angeles is a neutral, court-appointed individual who holds all the rights and powers of a corporate director until a board deadlock is resolved or the appointment is terminated by court order or majority vote of the shareholders. Appointed under California Corporations Code §308, provisional directors are commonly used in Los Angeles County courts to restore decision-making capacity and protect business continuity during shareholder or director disputes.
Who We Work With
FedReceiver works closely with Los Angeles attorneys handling corporate disputes where board members or shareholders are deadlocked. In cases where business operations are at risk, the Los Angeles Superior Court may appoint a provisional director in Los Angeles under California Corporations Code §308 to break the deadlock and preserve the company’s value. Our team is regularly appointed in local disputes where corporate governance has collapsed and judicial intervention is necessary.
Qualifications of a Provisional Director
Under California law, a provisional director must be an impartial person. This individual cannot be a shareholder, a creditor of the corporation, or related within the third degree to any existing director or judge involved in the case. FedReceiver provides qualified professionals who meet all statutory requirements and have been approved by courts across Los Angeles County.
Uses of a Provisional Director
Appointing a provisional director in Los Angeles is often considered a less invasive alternative to full receivership. Rather than taking over the company, the provisional director acts as a voting member of the board to help resolve internal disputes. The court’s order outlines the scope of authority and how compensation and termination will be handled. The director must understand the underlying issues, remain neutral, and cast votes that are informed and in the company’s best interest.
Directors & Officers Insurance (D&O Coverage)
Because provisional directors do not have quasi-judicial immunity like court-appointed receivers, it is essential that D&O insurance coverage is in place. Businesses in Los Angeles considering a provisional director appointment should confirm that the director will be protected in the event of any claims or litigation.
What Makes a Provisional Director Successful
A successful Los Angeles provisional director conducts independent research, consults with legal counsel, and provides a reasoned and supportable vote on disputed board issues. They also aim to help the board reach consensus where possible. Per California Corporations Code §308(c), the director serves until the deadlock is resolved or the court issues an order for removal.
When Is a Provisional Director Needed in Los Angeles?
A provisional director in Los Angeles may be appointed when a corporation or nonprofit faces governance deadlock. This includes board disputes, voting stalemates, or an inability to conduct elections. In such cases, the Los Angeles Superior Court may assign a neutral director to restore decision-making and protect the organization’s interests.
Clients Who Trusted Us
Locations Served
We provide provisional director services in California.
Los Angeles, Riverside, San Francisco, San Bernardino, Sacramento, Ventura, San Diego, Orange County, and the California District Court
How we work together
Our experience with the Los Angeles Superior Court system allows us to provide seamless, efficient provisional directorships that resolve governance disputes and restore corporate function. Here’s how the process typically works:
Reach out
Reach out to us via our contact page.
Set an Appointment
An initial call will allow for an initial assessment of the proposed case.
Sample Pleadings & Orders
FedReceiver has a vast library of exemplars including motions seeking appointment of provisional director, orders appointing provisional director and memorandum of points & authorities.
References
We offer excellent references with local and national law firms, accounting firms and clients.
Court Experience
Given our decades of experience and hundreds of cases, we have appeared in state/federal court and have excellent relationships with numerous courts/judges.
Review the chapter authored by Mr. Donell
Reviving the Financially Distressed Business
Reviving The Financially Distressed Business is the essential guide for business owners and corporate leaders whose companies are under—or anticipating—financial difficulties. See Chapter 11, Receiverships, written by Court Receiver Stephen Donell, CCIM, CPM
Steve Donell’s contribution to the book “Reviving a Financially Distressed Business” reflects not only his expertise as a receiver, but his sound judgment on how receivership can be used to effectively advance a financially troubled business.”
– Brian Davidoff, Esq. Author and Editor
About Our Provisional Directors Serving Los Angeles
Trusted Court-Appointed Provisional Directors for Los Angeles Corporate Disputes
Our professionals are frequently appointed by the Los Angeles Superior Court to serve as provisional directors or managers in corporate and LLC disputes. These appointments grant us full board-level authority under California Corporations Code §308 or Cal. Code Civ. Proc. §564(b)(9) to resolve deadlock, make critical decisions, and preserve business value.
We are proud to have a team of experienced professionals based in Los Angeles. All of our professionals bring deep familiarity with Los Angeles courts, business dynamics, and fiduciary standards.
Stephen J. Donell Los Angeles
President of FedReceiver, Inc., Jalmar Properties, Inc. and Donell Expert Services, Inc.
Todd D. Donell Los Angeles
Executive Vice President of FedReceiver, Inc. and Jalmar Properties, Inc.
James H. Donell Los Angeles
Founder and CEO of FedReceiver, Inc. and Jalmar Properties, Inc.
Sarah R. Bates Los Angeles
Vice President of FedReceiver, Inc. and Jalmar Properties, Inc.
