Marginal note:Liability for wages
210 (1) Subject to subsections (2) and (3), the directors of a bank are jointly and severally liable to each employee of the bank for all debts not exceeding six months wages payable to the employee for services performed for the bank while they are directors.
Marginal note:Conditions precedent
(2) A director is not liable under subsection (1) unless
(a) the bank has been sued for the debt within six months after it has become due and execution has been returned unsatisfied in whole or in part;
(b) the bank has commenced liquidation and dissolution proceedings or has been dissolved and a claim for the debt has been proven within six 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 bank under the Winding-up and Restructuring Act and a claim for the debt has been allowed or proven within six 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 two years after the director has ceased to be a director.
Marginal note:Amount due after execution
(4) Where execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.
Marginal note:Subrogation of director
(5) Where a director of a bank 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.
Marginal note:Contribution entitlement
(6) A director of a bank who has satisfied a claim under this section is entitled to a contribution from the other directors of the bank who are liable for the claim.
- 1991, c. 46, s. 210
- 1996, c. 6, s. 167
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