Part 2 — Provincial Companies Subpart 1 Status and Powers of Provincial Companies
363 Liability for wages
provincial company are jointly and severally liable to each
employee of the company for all debts not exceeding 6 months'
wages payable to the employee for services performed for the
company while they are directors.
(2) A director is not liable under subsection (1) unless
RSA 2000
(a) the provincial company has been sued for the debt within 6
months after it has become due and execution has been
returned unsatisfied in whole or in part,
(b) the company has commenced liquidation and dissolution
proceedings or has been dissolved and a claim for the debt
has been proven within 6 months after the earlier of the date
of commencement of the liquidation and dissolution
proceedings and the date of dissolution, or
(c) a winding-up order has been issued in respect of the
company under the Winding-up and Restructuring Act
(Canada) and a claim for the debt has been allowed or
proven within 6 months after the issue of the winding-up
order.
(3) A director is not liable under subsection (1) unless the director
is sued for a debt referred to in that subsection while a director or
within 2 years after the person has ceased to be a director.
(4) Where execution referred to in subsection (2)(a) has issued, the
amount recoverable from a director is the amount remaining
unsatisfied after execution.
(5) Where a director of a provincial company pays a debt referred
to in subsection (1) that is proven in liquidation and dissolution or
winding-up proceedings, the director is entitled to any preference
that the employee would have been entitled to and, where a
judgment has been obtained, the director is entitled to an
assignment of the judgment.
(6) A director of a provincial company who has satisfied a claim
under this section is entitled to a contribution from the other
directors of the company who are liable for the claim.
1999 cI-5.1 s363