Ontario Severance

D. v. G.

1929 CanLII 744 (ON SC)Ontario Superior Court of JusticeDecided Employment standards

Directors' Liability for Unpaid Wages in Bankruptcy

Summary

This case addresses the liability of directors for unpaid wages owed to employees when the employer company is declared bankrupt. The court held that directors remained jointly and severally liable for wages incurred during their tenure under section 100(1) of the Companies Act, as they had not resigned or discharged their obligations. The court also upheld the plaintiff's right to sue for assigned wage claims from other employees.

Outcome

Directors held liable for unpaid wages; assignment of claims upheld.

Award

Directors held jointly and severally liable for unpaid wages not exceeding one year’s wages.

Key Factors

  • directors' liability
  • unpaid wages
  • bankruptcy
  • assignment of claims
  • Companies Act

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This summary was written by AI from the published decision and its headnote. It is not an official version of the decision; read the full text on CanLII before relying on it. This is legal information, not legal advice. Ontario Severance is an educational tool. If you are facing a serious employment law matter, consult with a qualified employment lawyer in Ontario.