Provisional Director Phoenix
A Phoenix provisional director is a neutral individual appointed by the court to temporarily serve on a corporate board when a deadlock prevents the company from functioning effectively. A provisional director has the same rights and powers as other directors until the deadlock is resolved or the court orders their removal.
Who We Work With
We work with Arizona attorneys and business owners involved in corporate disputes where governance deadlock threatens operations or risks impairment of property and business assets. Provisional director appointments are authorized under Arizona Revised Statutes Title 10 – Corporations and Associations, which governs corporate management and remedies for deadlock.
Qualifications of a Provisional Director
By law, a provisional director must be impartial and independent. This means they cannot be a shareholder, a creditor of the corporation, or related within the third degree to other directors or to the appointing judge. This ensures unbiased decision-making in the best interests of the corporation.
Uses of a Provisional Director
In many cases, appointing a provisional director can be an effective alternative to appointing a Phoenix partnership dispute receiver or business receiver. Acting as a neutral decision-maker, the provisional director reviews disputed issues and casts votes to resolve deadlocks, allowing the business to continue operations without lengthy delays.
D&O Insurance
Unlike receivers, provisional directors do not benefit from quasi-judicial immunity. It is advisable for corporations to confirm that Directors and Officers (D&O) insurance is in place and that coverage extends to provisional directors in the event of claims or litigation.
A Successful Provisional Director
A successful provisional director conducts thorough research, considers competing positions, and issues fair, well-reasoned votes to resolve disputes. Their role is to stabilize governance, resolve as many disagreements as possible, and maintain business continuity until the court removes them or the deadlock is broken.
The ABCs of a Phoenix Provisional Director
Provisional directors are most useful in situations where board or shareholder disputes paralyze decision-making. By stepping in as a neutral third party, they ensure that corporations in Phoenix can move forward without risking the loss of assets, opportunities, or compliance with corporate governance laws.
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, expertise, training and resources are utilized to effectuate a successful provisional directorship.
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 Managers & Directors in Phoenix
Complex disputes within corporations, partnerships, or LLCs sometimes make it impossible for ownership groups or boards to function effectively. In such cases, courts may appoint provisional directors or managers in Phoenix to break governance deadlocks and ensure business continuity.
Our professionals have been appointed as provisional directors and managers with full rights, duties, and powers of directors, officers, and members, in accordance with applicable statutes such as the Arizona Revised Statutes, Title 10 – Corporations and Associations. These appointments allow us to step into leadership roles neutrally, preserving operations and protecting stakeholder interests until disputes are resolved or court orders are fulfilled.
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.
