Kentucky Statutes 271B.6-220 – Liability of shareholders
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(1) A purchaser from a corporation of its own shares shall not be liable to the corporation or its creditors with respect to the shares except to pay the consideration for which the shares were authorized to be issued or specified in the subscription agreement.
(2) Unless otherwise provided in the articles of incorporation, a shareholder of a corporation shall not be personally liable for the acts or debts of the corporation except that he or she may become personally liable by reason of his own acts or conduct.
(3) That a corporation has a single shareholder is not a basis for setting aside the rule recited in subsection (2) of this section.
Effective: July 12, 2012
History: Amended 2012 Ky. Acts ch. 81, sec. 88, effective July 12, 2012. — Created
1988 Ky. Acts ch. 23, sec. 39, effective January 1, 1989.
(2) Unless otherwise provided in the articles of incorporation, a shareholder of a corporation shall not be personally liable for the acts or debts of the corporation except that he or she may become personally liable by reason of his own acts or conduct.
Terms Used In Kentucky Statutes 271B.6-220
- Articles of incorporation: include amended and restated articles of incorporation and articles of merger. See Kentucky Statutes 271B.1-400
- 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.
- Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Shareholder: means the person in whose name shares are registered in the records of a corporation or the beneficial owner of shares to the extent of the rights granted by a nominee certificate on file with a corporation. See Kentucky Statutes 271B.1-400
(3) That a corporation has a single shareholder is not a basis for setting aside the rule recited in subsection (2) of this section.
Effective: July 12, 2012
History: Amended 2012 Ky. Acts ch. 81, sec. 88, effective July 12, 2012. — Created
1988 Ky. Acts ch. 23, sec. 39, effective January 1, 1989.