Section 18-1904 - ILLEGAL DIVIDENDS AND REDUCTIONS OF CAPITAL.

ID Code § 18-1904 (2019) (N/A)

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18-1904. ILLEGAL DIVIDENDS AND REDUCTIONS OF CAPITAL. Every director of any stock corporation who concurs in any vote or act of the directors of such corporation, or any of them, by which it is intended, either:

1. To make any dividend, except from the surplus profits arising from the business of the corporation, and in the cases and manner allowed by law; or,

2. To divide, withdraw or in any manner, except as provided by law, pay to the stockholders, or any of them, any part of the capital stock of the corporation; or,

3. To discount or receive any note or other evidence of debt in payment of any instalment actually called in and required to be paid, or with the intent to provide the means of making such payment; or,

4. To receive or discount any note or other evidence of debt, with the intent to enable any stockholder to withdraw any part of the money paid in by him or his stock; or,

5. To receive from any other stock corporation, in exchange for the shares, notes, bonds or other evidences of debt of their own corporation, shares of the capital stock of such other corporation, or notes, bonds or other evidences of debt issued by such other corporation;

Is guilty of a misdemeanor.

History:

[18-1904, added 1972, ch. 336, sec. 1, p. 880.]

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