§ 23-17-13-4 — Unlawful distributions; liability

Indiana § 23-17-13-4

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 17: NONPROFIT CORPORATIONS
• Ch. 13: Standards of Conduct for Directors

Text

(a) Subject to section 1(d) of this chapter, a
director who votes for or assents to a distribution made in violation of
this article or articles of incorporation is personally liable to the
corporation for the amount of the distribution that exceeds the amount
that could have been distributed without violating this article or articles
of incorporation.
(b) A director who is held liable for an unlawful distribution under
subsection (a) is entitled to contribution from the following:
(1) Every other director who voted for or assented to the
distribution, subject to section 1(d) of this chapter.
(2) Each person who received an unlawful distribution for the
amount of the distribution accepted whether or not the person
receiving the distribution knew the distribution was made in
violation of this article, articles of incorporation, or the bylaws.

Legislative History

As added by P.L.179-1991, SEC.1.