The Senate passed a bill on Friday that would nullify a court decision that allows members of a limited liability company to be held personally responsible in some instances of wrongdoing.
Senate Bill 422 deals with a legal action known as “piercing the veil.” That’s legal jargon for a court essentially holding the members of an LLC personally responsible if their business runs afoul of the law. It’s a practice used with litigation involving corporations.
Supporters of the bill argued it makes it easier to do business in West Virginia without the fear of lawsuits.
Opponents of the bill argued that if this bill becomes law it would encourage shell LLCs to crop up in West Virginia, and that members of those LLCs would have no incentive to make sure they have the proper business insurance.
Also on Friday, the Senate passed a measure, Senate Bill 626, that would regulate purchases of automobile catalytic converters. This bill would create a crime for possessing a catalytic converter without documented proof of legal purchase. The legislation is in response to a rash of catalytic converter thefts around the state.
The bills now head to the House of Delegates for consideration.
The Senate is adjourned until Monday, March 22 at 11 a.m.
