LegalFix
Sign In

Section 33-31-833. Liability for unlawful distributions.

SC Code § 33-31-833 (2019) (N/A)
Copy with citation
Copy as parenthetical citation

(a) Unless a director complies with the applicable standards for conduct described in Section 33-31-830, a director who votes for or assents to a distribution made in violation of this chapter or the articles of incorporation is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating this chapter.

(b) A director held liable for an unlawful distribution under subsection (a) is entitled to contribution:

(1) from every other director who voted for or assented to the distribution without complying with the applicable standards of conduct described in Section 33-31-830; and

(2) from each person who received an unlawful distribution for the amount of the distribution whether or not the person receiving the distribution knew it was made in violation of this chapter.

HISTORY: 1994 Act No. 384, Section 1.

Previous Section
Section 33-31-832. Loans or guarantees for directors and officers.
Next Section
Section 33-31-834. Immunity from suit.