🚀 go-pugleaf

: Paul Klimstra (ab837@freenet.hamilton.on.ca) wrote:
: : Just out of interest, and of very little relation to the above topic, if
: : the TFN folds, do the directors become liable for its debts?

Directors are liable for some debts, mainly back wages and unpaid taxes.

: Paul Klimstra continues:
: : I mean, if
: : they're free to spend the assets on a whim, shouldn't they be held
: : accountable for its debts?
Peter Selk (bk078@torfree.net) wrote:
: First off, I must note that nobody said anything about a whim until you 
: did.  I noted that if the directors thought it best to spend money on 
: legal fees, or whatever else for that matter, they have the power to do 
: so.

TFN directors are restricted by bylaws on "whatever else" to spend on. E.g.
Unlike directors of other corporations, TFN directors are unpaid. (Letters
Patent bylaw 31 follows). 
 
-------------------------TFN Letters Patent-----------------------------
31.	Remuneration of Directors.   The directors shall serve without 
	remuneration and no director shall directly or indirectly receive any 
	profit from their position as such. [...]

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For anyone interested, the next election of directors occurs in Nov 1997.
At least 6 seats will be up for election. In Nov 1996, 13 seats were up
for election, because all but 2 directors resigned prior to the election.

Cheers. 
-- 
|Board member                                              Bill Chow, B.Com.|
|Toronto Free-Net Inc.                                Toronto,Ontario,CANADA|
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