Bill Text: NY A05926 | 2009-2010 | General Assembly | Introduced

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Bill Title: An act to repeal section 630 of the business corporation law, relating to the liability of shareholders for wages due to laborers, servants or employees, and to amend the cooperative corporations law, in relation to making conforming changes thereto

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - referred to corporations, authorities and commissions [A05926 Detail]

Download: New_York-2009-A05926-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5926
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 23, 2009
                                      ___________
       Introduced  by  M.  of  A.  SCHIMMINGER -- read once and referred to the
         Committee on Corporations, Authorities and Commissions
       AN ACT to repeal section 630 of the business corporation  law,  relating
         to  the  liability of shareholders for wages due to laborers, servants
         or employees, and  to  amend  the  cooperative  corporations  law,  in
         relation to making conforming changes thereto
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 630 of the business corporation law is REPEALED.
    2    S 2. Paragraph (b) of subdivision 1 of section 5  of  the  cooperative
    3  corporations  law,  as  amended  by  chapter 618 of the laws of 1968, is
    4  amended to read as follows:
    5    (b) The following provisions of the business corporation law shall not
    6  apply to cooperative corporations: section two hundred one (a),  section
    7  four  hundred  three,  the  final clause of section five hundred one (a)
    8  which reads "and no SUCH limitation or definition of dividend or  liqui-
    9  dation  rights shall be effective unless at the time one or more classes
   10  of outstanding shares, singly or  in  the  aggregate,  are  entitled  to
   11  unlimited  dividend  and liquidation rights", section five hundred five,
   12  section five hundred eighteen (c), section six  hundred  eight  (a)  and
   13  (b), section six hundred nine, section six hundred fourteen (a), section
   14  six  hundred  eighteen,  section  six  hundred  twenty-one,  section six
   15  hundred twenty-two, [section six hundred thirty (a) (except as  provided
   16  in  section  forty-seven  of this chapter),] section seven hundred three
   17  (a), section seven hundred four, and section eight hundred three (a).
   18    S 3. Subdivision 1 of section 47 of the cooperative corporations  law,
   19  as  amended  by  chapter  664 of the laws of 1966, is amended to read as
   20  follows:
   21    1. Members of a cooperative corporation shall not be personally liable
   22  for its debts, unless otherwise provided in its certificate of  incorpo-
   23  ration[;  provided, however, that each member and director shall jointly
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08893-01-9
       A. 5926                             2
    1  and severally be personally liable for all  debts  due  to  any  of  its
    2  laborers,  servants  or  employees, other than contractors, for services
    3  performed by them for it as defined by section six hundred thirty (b) of
    4  the  business  corporation  law. The liability imposed by this paragraph
    5  shall be subject to the notice and limitation of action provisions,  set
    6  out  in  section six hundred thirty (a) of the business corporation law,
    7  and shall be subject to section six hundred thirty (c) of such law].
    8    S 4. This act shall take effect immediately.