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2.Liability for Employee Wages
•The CNCA holds directors jointly and
severally, or solidarily, liable to
employees for all debts not exceeding 6
months wages for services performed for the
corporation while they are directors
•The ONCA contains a similar provision,
although directors are additionally liable
for up to 12 months vacation pay
•The CNCA provides for a “reasonable
diligence” defence to escape liability for
wages
•However, under the ONCA, directors are
strictly liable for these amounts
•In this regard, the “reasonable
diligence defence” in the ONCA does
not specifically provide that it is a defence available for liability for wages, like the provision in the CNCA
•Therefore, it appears that the defence
is not available for directors of ONCA
corporations for employee wages
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