2019 Montana Code Annotated
Title 35. Corporations, Partnerships, and Associations
Chapter 1. Business Corporations
Part 7. Distributions(Repealed effective June 1, 2020)
35-1-713. Liability for unlawful distributions
35-1-713. (Temporary) Liability for unlawful distributions. (1) Unless the director complies with the applicable standards of conduct described in 35-1-418, a director who votes for or assents to a distribution made in violation of this chapter 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 this chapter or the articles of incorporation.
(2) A director held liable for an unlawful distribution under subsection (1) is entitled to contribution:
(a) from every other director who voted for or assented to the distribution and who did not comply with the applicable standards of conduct described in 35-1-418; and
(b) from each shareholder for the amount the shareholder accepted if the shareholder knows the distribution was made in violation of this chapter or the articles of incorporation. (Repealed effective June 1, 2020--secs. 269, 274, Ch. 271, L. 2019.)
History: En. Sec. 93, Ch. 368, L. 1991.
