13.1-1238.2 - Involuntary cancellation of business trust existence. - Virginia Statutes

§ 13.1-1238.2. Involuntary cancellation of business trust existence.

A. The existence of a business trust may be canceled involuntarily by orderof the Commission when it finds that the business trust has:

1. Continued to exceed or abuse the authority conferred upon it by law;

2. Failed to maintain a registered office or a registered agent in theCommonwealth as required by law;

3. Failed to file any document required by this chapter to be filed with theCommission; or

4. Been convicted for a violation of 8 U.S.C. § 1324a(f), as amended, foractions of its trustees or beneficial owners authorized to act on the behalfof a business trust constituting a pattern or practice of employingunauthorized aliens in the Commonwealth.

B. Before entering any such order, the Commission shall issue a rule againstthe business trust giving it an opportunity to be heard and show cause whysuch an order should not be entered. The Commission may issue the rule on itsown motion or on motion of the Attorney General.

C. The properties and affairs of a business trust whose existence has beencanceled pursuant to this section shall pass automatically to its trustees astrustees in liquidation. The trustees shall then proceed to (i) collect theassets of the business trust; (ii) sell, convey, and dispose of such of itsproperties as are not to be distributed in kind to its beneficial owners;(iii) pay, satisfy, and discharge its liabilities and obligations; and (iv)do all other acts required to liquidate its business and affairs. Afterpaying or adequately providing for the payment of all its obligations, theliquidating trustees shall distribute the remainder of its assets, either incash or in kind, among its beneficial owners according to their respectiverights and interests.

D. Any business trust convicted of the offense listed in subdivision A 4shall immediately report such conviction to the Commission and file with theCommission an authenticated copy of the judgment or record of conviction. Abusiness trust whose existence is canceled pursuant to subdivision A 4 shallnot be eligible for reinstatement for a period of not less than one year.

(2008, c. 101; 2009, c. 167.)