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A06932 Summary:

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A06932 Floor Votes:

A06932 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6932
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 25, 2013
                                       ___________
 
        Introduced  by M. of A. STECK -- read once and referred to the Committee
          on Corporations, Authorities and Commissions
 
        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:
 
     1    Section  1.  Paragraph  (a) of section 630 of the business corporation
     2  law, as amended by chapter 212 of the laws of 1984, is amended  to  read
     3  as follows:
     4    (a) The  ten  largest shareholders, as determined by the fair value of
     5  their beneficial interest as of the beginning of the period during which
     6  the unpaid services referred to in this section are performed, of  every
     7  domestic  corporation  (other  than  an investment company registered as
     8  such under an act  of  congress  entitled  "Investment  Company  Act  of
     9  1940"),  or  of  any  foreign corporation, when the unpaid services were
    10  performed in the state, no shares of which  are  listed  on  a  national

    11  securities exchange or regularly quoted in an over-the-counter market by
    12  one  or  more  members of a national or an affiliated securities associ-
    13  ation, shall jointly and severally be personally liable for  all  debts,
    14  wages  or  salaries  due  and  owing to any of its laborers, servants or
    15  employees other than contractors, for services  performed  by  them  for
    16  such  corporation. Before such laborer, servant or employee shall charge
    17  such shareholder for such services, he shall give notice in  writing  to
    18  such  shareholder that he intends to hold him liable under this section.
    19  Such notice shall be given within one  hundred  and  eighty  days  after
    20  termination  of  such  services, except that if, within such period, the
    21  laborer, servant or employee demands an examination  of  the  record  of
    22  shareholders  under  paragraph  (b)  of  section 624 (Books and records;

    23  right of inspection, prima facie evidence), such  notice  may  be  given
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09651-01-3
        A. 6932                             2
 
     1  within sixty days after he has been given the opportunity to examine the
     2  record  of  shareholders.   An action to enforce such liability shall be
     3  commenced within ninety days after the return of an  execution  unsatis-
     4  fied  against  the  corporation upon a judgment recovered against it for
     5  such services.
     6    § 2. This act shall take effect on the sixtieth  day  after  it  shall
     7  have become a law.