                                 CODE OF VIRGINIA

INVOLUNTARY CANCELLATION OF BUSINESS TRUST EXISTENCE (§ 13.1-1238.2)

A. The existence of a business trust may be canceled involuntarily by order of
the Commission when it finds that the business trust has:

   1. Continued to exceed or abuse the authority conferred upon it by law;

   2. Failed to maintain a registered office or a registered agent in the
   Commonwealth as required by law;

   3. Failed to file any document required by this chapter to be filed with the
   Commission; or

   4. Been convicted for a violation of 8 U.S.C. &#xA7; 1324a (f), as amended,
   for actions of its trustees or beneficial owners authorized to act on the
   behalf of a business trust constituting a pattern or practice of employing
   unauthorized aliens in the Commonwealth.

B. Before entering any such order, the Commission shall issue a rule against the
business trust giving it an opportunity to be heard and show cause why such an
order should not be entered. The Commission may issue the rule on its own motion
or on motion of the Attorney General.

C. The properties and affairs of a business trust whose existence has been
canceled pursuant to this section shall pass automatically to its trustees as
trustees in liquidation. The trustees shall then proceed to (i) collect the
assets of the business trust; (ii) sell, convey, and dispose of such of its
properties as are not to be distributed in kind to its beneficial owners; (iii)
pay, satisfy, and discharge its liabilities and obligations; and (iv) do all
other acts required to liquidate its business and affairs. After paying or
adequately providing for the payment of all its obligations, the liquidating
trustees shall distribute the remainder of its assets, either in cash or in
kind, among its beneficial owners according to their respective rights and
interests.

D. Any business trust convicted of the offense listed in subdivision A 4 shall
immediately report such conviction to the Commission and file with the
Commission an authenticated copy of the judgment or record of conviction. A
business trust whose existence is canceled pursuant to subdivision A 4 shall not
be eligible for reinstatement for a period of not less than one year.

HISTORY: 2008, c. 101; 2009, c. 167.