Iowa Statutes

§ 504.835 — Liability for unlawful distributions

Iowa § 504.835
JurisdictionIowa
Title XIIBUSINESS ENTITIES
Ch. 504REVISED IOWA NONPROFIT CORPORATION ACT

This text of Iowa § 504.835 (Liability for unlawful distributions) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iowa Code § 504.835 (2026).

Text

1.Unlessadirectorcomplieswiththeapplicablestandardsofconductdescribedinsection 504.831, a director who votes for or assents to a distribution made in violation of this chapter is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating this chapter.
2.A director held liable for an unlawful distribution under subsection 1 is entitled to contribution from both of the following:
a.Every other director who voted for or assented to the distribution without complying with the applicable standards of conduct described in section 504.831.
b.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 ch

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Bluebook (online)
Iowa § 504.835, Counsel Stack Legal Research, https://law.counselstack.com/statute/ia/504.835.