By: Sheila Raftery Wiggins
Many franchise locations are operated by a privately held corporation. In New York, the top 10 shareholders of a privately held New York corporation (determined by value of their interest) can be held liable for unpaid wages. Effective January 19, 2016, the top 10 shareholders of privately held corporations organized in other states can now be held similarly liable. LESSON: A shareholder should not be “silent” regarding the operation of the business.