South Carolina Statutes

§ 33-8-330 — Liability for unlawful distributions.

South Carolina·Title 33 CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS·Ch. 8 DIRECTORS AND OFFICERS
(a)A director who votes for or assents to a distribution made in violation of Section 33-6-400 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 Section 33-6-400 or the articles of incorporation if it is established that he did not perform his duties in compliance with Section 33-8-300. In any proceeding commenced under this section, a director has all of the defenses ordinarily available to a director.
(b)A director held liable under subsection (a) for an unlawful distribution is entitled to contribution:
(1)from every other director who could be held liable under subsection (a) for the unlawful distribution; and (2) from each shareholder for the amount the sharehol

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Legislative History

HISTORY: Derived from 1976 Code SECTION 33-13-190 [1962 Code SECTION 12-18.19; 1962 (52) 1996; 1981 Act No. 146, SECTION 2; Repealed, 1988 Act No. 444, SECTION 2]; 1988 Act No. 444, SECTION 2. ARTICLE 4 Officers

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