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§ 47-1A-833 Directors' liability for unlawful distributions.

SD Codified L § 47-1A-833 (2019) (N/A)
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47-1A-833. Directors' liability for unlawful distributions. A director who votes for or assents to a distribution in excess of what may be authorized and made pursuant to § 47-1A-640 or 47-1A-1409 is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating § 47-1A-640 or 47-1A-1409 if the party asserting liability establishes that when taking the action the director did not comply with §§ 47-1A-830 and 47-1A-830.1. A proceeding to enforce the liability of a director under this section is barred unless it is commenced within two years after the date:

(1) On which the effect of the distribution was measured under § 47-1A-640.2 or 47-1A-640.4;

(2) As of which the violation of § 47-1A-640 occurred as the consequence of disregard of a restriction in the articles of incorporation; or

(3) On which the distribution of assets to shareholders under § 47-1A-1409 was made.Source: SL 2005, ch 239, § 162.

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§ 47-1A-831.2 Limitations on the effect of §§ 47-1A-831 and 47-1A-831.1.
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§ 47-1A-833.1 Contribution or recoupment--Limitation of actionSUBPART D. OFFICERS.