South Carolina General Assembly

116th Session, 2005-2006

S. 1307

STATUS INFORMATION

General Bill

Sponsors: Senators Malloy, Ritchie, Sheheen and Martin

Document Path: l:\s-jud\bills\malloy\jud0062.gm.doc

Introduced in the Senate on April 4, 2006

Introduced in the House on May 2, 2006

Last Amended on April 26, 2006

Currently residing in the House Committee on Labor, Commerce and Industry

Summary: Dissolved corporation

HISTORY OF LEGISLATIVE ACTIONS

DateBodyAction Description with journal page number

4/4/2006SenateIntroduced, read first time, placed on calendar without reference SJ33

4/26/2006SenateAmended SJ93

4/26/2006SenateRead second time SJ93

4/27/2006SenateRead third time and sent to House SJ33

5/2/2006HouseIntroduced and read first time HJ22

5/2/2006HouseReferred to Committee on Labor, Commerce and IndustryHJ22

VERSIONS OF THIS BILL

4/4/2006

4/4/2006-A

4/26/2006

Indicates Matter Stricken

Indicates New Matter

AMENDED

April 26, 2006

S.1307

Introduced by Senators Malloy, Ritchie, Sheheen and Martin

S. Printed 4/26/06--S.

Read the first time April 4, 2006.

[1307-1]

A BILL

TO AMEND SECTION 3314107, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO UNKNOWN CLAIMS AGAINST DISSOLVED CORPORATIONS, SO AS TO STANDARDIZE THE TIME FOR ENFORCING THE CLAIM AS TEN YEARS AFTER PUBLICATION OF THE NEWSPAPER NOTICE.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION1.Section 3314107 of the 1976 Code is amended to read:

“Section 3314107.(a)A dissolved corporation may publish notice of its dissolution and request that persons with claims against the corporation present them in accordance with the notice.

(b)The notice must:

(1)be published once in a newspaper of general circulation in the county where the dissolved corporation’s principal office (or, if none in this State, its registered office) is or was last located;

(2)describe the information that must be included in a claim and provide a mailing address where the claim may be sent; and

(3)state that a claim against the corporation is barred unless a proceeding to enforce the claim is commenced within five years after the publication of the notice.

(c)If the dissolved corporation publishes a newspaper notice in accordance with subsection (b), the claim of each of the following claimants is barred unless the claimant commences a proceeding to enforce the claim against the dissolved corporation within tenfive years after the publication date of the newspaper notice:

(1)a claimant who did not receive written notice pursuant to Section 3314106;

(2)a claimant whose claim was timely sent to the dissolved corporation but not acted on; and

(3)a claimant whose claim is contingent or based on an event occurring after the effective date of the dissolution.

(d)A claim may be enforced under this section:

(1)against the dissolved corporation to the extent of its undistributed assets; or

(2)if the assets have been distributed in liquidation, against a shareholder of the dissolved corporation to the extent of his pro rata share of the claim or the corporate assets distributed to him in liquidation, whichever is less, but a shareholder’s total liability for all claims under this section may not exceed the total amount of assets distributed to him.”

SECTION2.By passing this act, the General Assembly intends and declares that any previous discrepancy in time periods shall be to the benefit of a party who published the notice by dissolved corporation in accordance with the provisions of Section 33-14-107(b)(3) as it existed prior to the date of this act.

SECTION3.This act takes effect upon approval by the Governor and is effective for notices by dissolved corporations published subsequent to the effective date.

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