Nebraska § 21-1989 Liability for unlawful distributions

Nebraska Statutes

§ 21-1989 — Liability for unlawful distributions

Nebraska § 21-1989

Ch. 21Corporations and Other Companies

This text of Nebraska § 21-1989 (Liability for unlawful distributions) is published on Counsel Stack Legal Research, covering Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Neb. Rev. Stat. § 21-1989 (2026).

Text

(a)Unless a director complies with the applicable standards of conduct described in section 21-1986 , a director who votes for or assents to a distribution made in violation of the Nebraska Nonprofit Corporation Act is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating the act.

(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 section 21-1986 ; and

(2)From each person who received an unlawful distribution for the amount of the distribution whether or not the person receiving the distrib

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(a) Unless a director complies with the applicable standards of conduct described in section 21-1986 , a director who votes for or assents to a distribution made in violation of the Nebraska Nonprofit Corporation Act is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating the act.
(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 section 21-1986 ; and
(2) From 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 the act.