New Jersey Statutes 14A:12-13.1. Creditors barred from suing shareholders of certain dissolved corporations
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In New Jersey Statutes 14A:12-13.1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
1. (1) A creditor as defined in subsection (3) of N.J.S. 14A:12-12 or subsection (b) of N.J.S.14A:14-1, and all those claiming through or under the creditor, shall be forever barred from suing a shareholder on any claim, or otherwise realizing upon or enforcing any claim against a shareholder, unless that claim was filed against the shareholder, pursuant to N.J.S. 14A:12-13 or N.J.S.14A:14-15, or otherwise, within five years after the corporation was dissolved.
(2) This section shall not: (a) apply to claims against shareholders which are in litigation on the effective date of this section; (b) operate to extend any otherwise applicable statute of limitations; or (c) affect any rights of creditors under the “Uniform Voidable Transactions Act,” R.S.25:2-20 et seq.
L.2001, c.231, s.1; amended 2021, c.92, s.20.