S.D. Codified Laws § 47-1A-833
This is the official text of S.D. Codified Laws § 47-1A-833, part of South Dakota’s Codified Laws — part of the compiled statutory law of South Dakota, published by the state as "Codified Laws." Browse the sections below, each linked to its official government source.
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Directors' liability for unlawful distributions
Official statutory 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 incorporation; or
(3) On which the distribution of assets to shareholders under § 47-1A-1409 was made.
Source: SL 2005, ch 239, § 162.
(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.
Source: SL 2005, ch 239, § 162.
Status: in_force · Read it on the official government site
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