South Carolina § 33-8-330 Liability for unlawful distributions.

South Carolina Statutes

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

South Carolina § 33-8-330

Title 33CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS

Ch. 8DIRECTORS AND OFFICERS

This text of South Carolina § 33-8-330 (Liability for unlawful distributions.) is published on Counsel Stack Legal Research, covering South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.C. Code Ann. § 33-8-330 (2026).

Text

(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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(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 shareholder accepted knowing the distribution was made in violation of Section 33-6-400 or the articles of incorporation.

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