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Arkansas Code Title 4. Business and Commercial Law § 4-27-833. Unlawful distributions

Current as of March 28, 2024 | Updated by FindLaw Staff

(a) Unless he complies with the applicable standards of conduct described in § 4-27-830, 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 or the articles of incorporation.

(b) A director held liable for an unlawful distribution under subsection (a) of this section 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 § 4-27-830; and

(2) from each shareholder for the amount the shareholder accepted knowing the distribution was made in violation of this chapter or the articles of incorporation.

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Cite this article: FindLaw.com - Arkansas Code Title 4. Business and Commercial Law § 4-27-833. Unlawful distributions - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-4-business-and-commercial-law/ar-code-sect-4-27-833/

Read this complete Arkansas Code Title 4. Business and Commercial Law § 4-27-833. Unlawful distributions on Westlaw. Westlaw subscription required.

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