Indiana Code 23-17-13-4. Unlawful distributions; liability
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Sec. 4. (a) Subject to section 1(d) of this chapter, a director who votes for or assents to a distribution made in violation of this article or articles of incorporation is personally liable to the corporation for the amount of the distribution that exceeds the amount that could have been distributed without violating this article or articles of incorporation.
(1) Every other director who voted for or assented to the distribution, subject to section 1(d) of this chapter.
(b) A director who is held liable for an unlawful distribution under subsection (a) is entitled to contribution from the following:
Terms Used In Indiana Code 23-17-13-4
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(2) Each person who received an unlawful distribution for the amount of the distribution accepted whether or not the person receiving the distribution knew the distribution was made in violation of this article, articles of incorporation, or the bylaws.
As added by P.L.179-1991, SEC.1.