South Dakota § 47-1A-833 Directors' liability for unlawful distributions.

South Dakota Statutes

§ 47-1A-833 — Directors' liability for unlawful distributions.

South Dakota § 47-1A-833

Title 47CORPORATIONS

Ch. 47-1SOUTH DAKOTA BUSINESS CORPORATION ACT

This text of South Dakota § 47-1A-833 (Directors' liability for unlawful distributions.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 47-1A-833 (2026).

Text

A director who votes for or assents to a distribution in excess of what may be authorized and made pursuant to § 47-1A-640 or 47-1A-1409 is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating § 47-1A-640 or 47-1A-1409 if the party asserting liability establishes that when taking the action the director did not comply with §§ 47-1A-830 and 47-1A-830.1 . A proceeding to enforce the liability of a director under this section is barred unless it is commenced within two years after the date:

(1)On which the effect of the distribution was measured under § 47-1A-640.2 or 47-1A-640.4 ;

(2)As of which the violation of § 47-1A-640 occurred as the consequence of disregard of a restriction in the articles of in

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A director who votes for or assents to a distribution in excess of what may be authorized and made pursuant to § 47-1A-640 or 47-1A-1409 is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating § 47-1A-640 or 47-1A-1409 if the party asserting liability establishes that when taking the action the director did not comply with §§ 47-1A-830 and 47-1A-830.1 . A proceeding to enforce the liability of a director under this section is barred unless it is commenced within two years after the date: (1) On which the effect of the distribution was measured under § 47-1A-640.2 or 47-1A-640.4 ; (2) As of which the violation of § 47-1A-640 occurred as the consequence of disregard of a restriction in the articles of incorporation; or (3) On which the distribution of assets to shareholders under § 47-1A-1409 was made.