Aug. 25 at 9:54 PM
$CBIA Asked AI about custodianship. Here's the response:
Good question — you’re essentially asking about custodianship in the context of abandoned public companies, usually OTC/Expert Market tickers where management has gone missing and the company is delinquent in filings.
Here’s the general landscape:
1. No automatic time limit
There isn’t a fixed federal law that says “after X years a custodian can take over.” Instead, custodianship is a legal process, usually initiated in state court where the company is incorporated (commonly Nevada, Delaware, Wyoming).
2. Custodianship process
A third party (often an investor or group) petitions the court to appoint them as custodian of the abandoned corporation.
They must show that:
The company has no functioning management (CEO/board is missing/unresponsive).
The company has failed in its obligations (no filings, no annual meetings, no activity).
If the court agrees, it can appoint them custodian to revive the entity.
