Bill Text: NY S04476 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to the applicability of provisions relating to liability of shareholders for wages due to laborers, servants or employees for certain foreign corporations.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-05-27 - SUBSTITUTED BY A737 [S04476 Detail]

Download: New_York-2015-S04476-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4476
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                    March 23, 2015
                                      ___________
       Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
         printed to be committed 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;
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04400-01-5
       S. 4476                             2
    1  right  of inspection, prima facie evidence) OF THIS ARTICLE, such notice
    2  may be given within sixty days after he has been given  the  opportunity
    3  to  examine  the  record  of  shareholders.    An action to enforce such
    4  liability  shall  be commenced within ninety days after the return of an
    5  execution unsatisfied against the corporation upon a judgment  recovered
    6  against it for such services.
    7    S  2.  This  act  shall take effect on the sixtieth day after it shall
    8  have become a law.