District of Columbia Statutes
§ 31-4426 — Liability of directors.
District of Columbia § 31-4426
This text of District of Columbia § 31-4426 (Liability of directors.) is published on Counsel Stack Legal Research, covering District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Bluebook
D.C. Code § 31-4426 (2026).
Text
The directors of any company organized under the laws of the District shall be personally liable when they have participated in or assented to any act which shall cause injury to policyholders, creditors, or stockholders resulting from:
(1)ultra vires acts;
(2)illegal corporate acts done with their connivance, knowledge, or consent;
(3)issuing unpaid or part-paid stock and marking or representing it as paid up in full;
(4)dividend payments declared whether negligently or purposely impairing the capital stock and minimum surplus;
(5)mismanagement;
(6)loaning corporate funds to stockholders or discounting their notes out of corporate moneys;
(7)making false notices or reports that deceive the public; or, (8) transferring property to officers or stockholders to defraud policyholders or
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Legislative History
June 19, 1934, 48 Stat. 1150, ch. 672, ch. III, § 26; May 21, 1997, D.C. Law 11-268, § 10, 44 DCR 1730; Mar. 24, 1998, D.C. Law 12-81, § 24(b), 45 DCR 745
Nearby Sections
15
§ 31-1001
Report requirement.§ 31-1004
Confidentiality.§ 31-101
Definitions.§ 31-103
Functions and duties.§ 31-105
Transfers.§ 31-106
Organization.§ 31-106.01
Student Loan Ombudsman.§ 31-106.02a
Prohibited conduct – student loan servicers.§ 31-106.02b
Affirmative duties – student loan servicers.§ 31-106.02c
Prohibited acts – private education lenders.Cite This Page — Counsel Stack
Bluebook (online)
District of Columbia § 31-4426, Counsel Stack Legal Research, https://law.counselstack.com/statute/dc/31-4426.