Indiana Statutes
§ 23-1-35-4 — Unlawful distribution; liability; contribution
Indiana·Title 23 BUSINESS AND OTHER ASSOCIATIONS·Art. 1 INDIANA BUSINESS CORPORATION LAW·Ch. 35 Standards of Conduct for Directors
(a)Subject to section 1(e) of this chapter, a
director who votes for or assents to a distribution made in violation of
this article 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 article or the articles of
incorporation.
(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, subject to section 1(e) of this chapter; and
(2)from each shareholder for the amount the shareholder
accepted.
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Related
Designplan, Inc. and Jill D. Willey v. John R. Price and The National Bank of Indianapolis Corporation
(Indiana Court of Appeals, 2013)
Legislative History
As added by P.L.149-1986, SEC.19. Amended by P.L.107-1987,
SEC.13.
Nearby Sections
15
§ 23-0.5-1-1
Short title§ 23-0.5-1-2
Application§ 23-0.5-1-3
Application; exceptions§ 23-0.5-1-4
Delivery of record§ 23-0.5-1-5
Rules and procedures§ 23-0.5-1-6
Terms dependent on facts ascertainable outside the plan or filed
document; articles of amendment§ 23-0.5-1.5-1
Application of definitions§ 23-0.5-1.5-10
"Filed record"§ 23-0.5-1.5-11
"Filing entity"§ 23-0.5-1.5-12
"Foreign"§ 23-0.5-1.5-13
"General partnership"§ 23-0.5-1.5-14
"Governance interest"§ 23-0.5-1.5-15
"Governing person"§ 23-0.5-1.5-16
"Interest"§ 23-0.5-1.5-17
"Interest holder"