[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 832 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 832
To provide that bonuses and other extraordinary or excessive
compensation of corporate insiders and wrongdoers may be included in
the bankruptcy estate.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 9, 2003
Mr. Grassley introduced the following bill; which was read twice and
referred to the Committee on the JudiciaryYYYYYYYYYYYYYYYYYYYYY
_______________________________________________________________________
A BILL
To provide that bonuses and other extraordinary or excessive
compensation of corporate insiders and wrongdoers may be included in
the bankruptcy estate.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Corporate Accountability in
Bankruptcy Act''.
SEC. 2. BANKRUPTCY PROVISIONS.
(a) Preferences.--Section 547 of title 11, United States Code, is
amended by adding at the end the following:
``(h) A trustee may avoid any transfer made within 1 year before
the date of the filing of the petition that was made to an insider,
officer, or director for any bonuses, loans, nonqualified deferred
compensation, or other extraordinary or excessive compensation as
determined by the court.''.
(b) Fraudulent Transfers and Obligations.--Section 548(a) of title
11, United States Code, is amended by adding at the end the following:
``(3) The trustee may avoid any transfer of an interest of the
debtor in property, or any obligation incurred by the debtor, including
any bonuses, loans, nonqualified deferred compensation, or other
extraordinary or excessive compensation as determined by the court,
paid to any officer, director, or employee of an issuer of securities
(as defined in section 2(a) of the Public Company Accounting Reform and
Investor Protection Act of 2002), if--
``(A) that transfer of interest or obligation was made or
incurred on or within 4 years before the date of the filing of
the petition; and
``(B) a court of competent jurisdiction or an
administrative agency of the United States has found that the
officer, director, or employee committed--
``(i) a violation of the Federal securities laws
(as defined in section 3(a)(47) of the Securities
Exchange Act of 1934), State securities laws, or any
regulation or order issued under Federal or State
securities laws; or
``(ii) fraud, deceit, or manipulation in a
fiduciary capacity or in connection with the purchase
or sale of any security registered under section 12 or
15(d) of the Securities Exchange Act of 1934 or under
section 6 of the Securities Act of 1933.''.
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