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BILL AS INTRODUCED 2007-2008

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H.544

Introduced by Representatives Sharpe of Bristol, Deen of Westminster, Fisher of Lincoln and Head of S. Burlington

Referred to Committee on

Date:

Subject:  Corporations; wage claims; piercing the corporate veil

Statement of purpose:  This bill proposes to make officers, directors, or agents of a dissolved corporation that has not entered bankruptcy liable for unpaid wages as long as the officer, director, or agent has actively asserted substantial control over the management or financial affairs of the corporation.  This bill would not extend liability beyond unpaid wages.

AN ACT RELATING TO COLLECTION OF WAGES FROM DISSOLVED CORPORATIONS

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  11A V.S.A. § 14.08(c) is amended to read:

(c)  Directors of a dissolved corporation or governing persons of a successor entity which has complied with subsection (a) or (b) of this section shall not be personally liable to the claimants of the dissolved corporation, except that an officer, agent, or director may be personally liable for a claimant’s unpaid wages when the officer, agent, or director actively asserted substantial control over the management or financial affairs of the corporation, and no part of the wages owed have been paid as the result of a bankruptcy proceeding pursuant to Title 11 of the United States Code.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us