A. Whether or not the notice described in subsection B of § 13.1-1254 is mailed, if any business trust fails to pay its annual registration fee on or before December 31 of the year assessed, its existence shall be automatically canceled as of that day.
B. If any business trust whose registered agent has filed with the Commission a statement of resignation pursuant to § 13.1-1222 fails to file a statement of change pursuant to § 13.1-1221 within 31 days after the date on which the statement of resignation was filed, the Commission shall mail notice to the business trust of impending cancellation of its existence. If the business trust fails to file the statement of change before the last day of the second month immediately following the month in which the impending cancellation notice was mailed, the existence of the business trust shall be automatically canceled as of that day.
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. No beneficial owner, trustee, or other agent of a business trust shall have any personal obligation for any liabilities of the business trust, whether such liabilities arise in contract, tort, or otherwise, solely by reason of the cancellation of the business trust's existence pursuant to this section.
2008, c. 101; 2013, c. 25.
Structure Code of Virginia
Chapter 14 - Virginia Business Trust Act
§ 13.1-1202. Filing requirements
§ 13.1-1203. Issuance of certificate by Commission; recordation of documents
§ 13.1-1204. Fees for filing documents and issuing certificates
§ 13.1-1205. Unlawful to sign false documents; penalty
§ 13.1-1206. Unlawful to transact or offer to transact business as a business trust; penalty
§ 13.1-1207. Tax classification
§ 13.1-1208. Separate legal entity
§ 13.1-1212. Articles of trust
§ 13.1-1213. Articles of correction
§ 13.1-1216. Amendment of articles of trust
§ 13.1-1217. Restatement of articles of trust
§ 13.1-1219. Governing instrument
§ 13.1-1220. Registered office and registered agent
§ 13.1-1221. Change of registered office or registered agent
§ 13.1-1222. Resignation of registered agent
§ 13.1-1223. Service on business trust
§ 13.1-1224. Beneficial owners
§ 13.1-1225. Limited liability
§ 13.1-1226. Beneficial interests
§ 13.1-1227. Distributions to beneficial owners
§ 13.1-1228. Trustee management; limitation on duties and liabilities of others
§ 13.1-1233. Payment of and security for expenses
§ 13.1-1234. Dissolution generally
§ 13.1-1235. Judicial dissolution
§ 13.1-1237. Distribution of assets upon dissolution
§ 13.1-1238. Articles of cancellation
§ 13.1-1238.1. Automatic cancellation of business trust existence
§ 13.1-1238.2. Involuntary cancellation of business trust existence
§ 13.1-1239. Reinstatement of a business trust that has ceased to exist
§ 13.1-1240. Dissolution of series
§ 13.1-1241. Authority to transact business required; governing law
§ 13.1-1242. Application for certificate of registration
§ 13.1-1245. Amendments; amended applications for registration
§ 13.1-1246. Voluntary cancellation of certificate of registration
§ 13.1-1246.1. Automatic cancellation of registration
§ 13.1-1246.2. Involuntary cancellation of registration
§ 13.1-1246.3. Reinstatement of a certificate of registration that has been canceled
§ 13.1-1247. Transaction of business without registration; civil penalty
§ 13.1-1248. Actions by Attorney General
§ 13.1-1249. Transactions not constituting doing business
§ 13.1-1250. Merger of foreign business trust registered to transact business in Commonwealth
§ 13.1-1254. Penalty for failure to timely pay annual registration fees or file statement of change
§ 13.1-1256. Collection by suit and of unpaid bills
§ 13.1-1257. Authorization for merger
§ 13.1-1259. Exchange of securities; termination or amendment of merger
§ 13.1-1261. Articles of merger
§ 13.1-1262. Governing instrument
§ 13.1-1263.1. Abandonment of merger
§ 13.1-1266. Plan of domestication
§ 13.1-1267. Action on plan of domestication by a domestic business trust
§ 13.1-1268. Articles of domestication
§ 13.1-1269. Surrender of articles of trust upon domestication
§ 13.1-1270. Effect of domestication
§ 13.1-1271. Abandonment of domestication
§ 13.1-1272. Entity conversion
§ 13.1-1273. Plan of entity conversion
§ 13.1-1274. Action on plan of entity conversion
§ 13.1-1275. Articles of entity conversion
§ 13.1-1276. Effect of entity conversion
§ 13.1-1277. Abandonment of entity conversion
§ 13.1-1279. Inspection of records by beneficial owners
§ 13.1-1280. Scope of inspection right
§ 13.1-1281. Court-ordered inspection
§ 13.1-1282. Construction and application of chapter and governing instrument
§ 13.1-1283. Reservation of power to amend or repeal
§ 13.1-1284. Application to existing real estate investment trusts and foreign business trusts