|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jun 17, 2014||referred to rules|
senate Bill S7897
Archive: Last Bill Status - In Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S7897 - Details
S7897 - Summary
Relates to the applicability of provisions relating to liability of shareholders for wages due to laborers, servants or employees for certain foreign corporations.
S7897 - Sponsor Memo
BILL NUMBER:S7897 TITLE OF BILL: An act to amend the business corporation law, in relation to the applicability of provisions relating to liability of shareholders for wages due to laborers, servants or employees for certain foreign corporations PURPOSE OR GENERAL IDEA OF BILL: The bill ends discrimination against New York corporations and in favor of foreign (out of state) corporations insofar as liability for unpaid wages is concerned. SUMMARY OF PROVISIONS: The bill amends Business Corporation Law 630 to treat New York and foreign corporations alike in terms of liability for unpaid wages of employees. Currently liability is imposed only on New York corporations. JUSTIFICATION: Business Corporation Law S 630 imposes liability for unpaid wages on the 10 largest shareholders of a closely held corporation after a judgment against the corporation has been returned unsatisfied. This statute was part of an historic 19th century compromise in which New York first gave all citizens the right to form corporations and thereby insulate them-
S7897 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7897 I N S E N A T E June 17, 2014 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the business corporation law, in relation to the appli- cability of provisions relating to liability of shareholders for wages due to laborers, servants or employees for certain foreign corpo- rations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (a) of section 630 of the business corporation law, as amended by chapter 212 of the laws of 1984, is amended to read as follows: (a) The ten largest shareholders, as determined by the fair value of their beneficial interest as of the beginning of the period during which the unpaid services referred to in this section are performed, of every DOMESTIC corporation (other than an investment company registered as such under an act of congress entitled "Investment Company Act of 1940"), OR OF ANY FOREIGN CORPORATION, WHEN THE UNPAID SERVICES WERE PERFORMED IN THE STATE, no shares of which are listed on a national securities exchange or regularly quoted in an over-the-counter market by one or more members of a national or an affiliated securities associ- ation, shall jointly and severally be personally liable for all debts, wages or salaries due and owing to any of its laborers, servants or employees other than contractors, for services performed by them for such corporation. Before such laborer, servant or employee shall charge such shareholder for such services, he shall give notice in writing to such shareholder that he intends to hold him liable under this section. Such notice shall be given within one hundred and eighty days after termination of such services, except that if, within such period, the laborer, servant or employee demands an examination of the record of shareholders under paragraph (b) of section 624 (Books and records; right of inspection, prima facie evidence), such notice may be given within sixty days after he has been given the opportunity to examine the record of shareholders. An action to enforce such liability shall be commenced within ninety days after the return of an execution unsatis- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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