2010 New York Code
PEN - Penal
Article 190 - (190.00 - 190.86) OTHER FRAUDS
190.35 - Misconduct by corporate official.

§ 190.35 Misconduct by corporate official.
    A person is guilty of misconduct by corporate official when:
    1.  Being  a  director of a stock corporation, he knowingly concurs in
  any vote or act of the directors of such corporation, or any of them, by
  which it is intended:
    (a) To make a dividend except in the manner provided by law; or
    (b) To divide, withdraw or in any manner pay to  any  stockholder  any
  part  of  the  capital  stock  of  the  corporation except in the manner
  provided by law; or
    (c) To discount or receive any note  or  other  evidence  of  debt  in
  payment  of  an  installment  of  capital  stock  actually called in and
  required to be paid, or with intent to provide the means of making  such
  payment; or
    (d)  To  receive  or  discount any note or other evidence of debt with
  intent to enable any stockholder to withdraw any part of the money  paid
  in by him on his stock; or
    (e) To apply any portion of the funds of such corporation, directly or
  indirectly,  to  the  purchase of shares of its own stock, except in the
  manner provided by law; or
    2. Being a director or officer of a stock corporation:
    (a) He issues, participates in issuing, or concurs in a vote to  issue
  any increase of its capital stock beyond the amount of the capital stock
  thereof, duly authorized by or in pursuance of law; or
    (b)  He  sells,  or  agrees  to  sell,  or  is  directly or indirectly
  interested in the sale of any share of stock of such corporation, or  in
  any  agreement  to  sell  the  same,  unless at the time of such sale or
  agreement he is an  actual  owner  of  such  share,  provided  that  the
  foregoing shall not apply to a sale by or on behalf of an underwriter or
  dealer in connection with a bona fide public offering of shares of stock
  of such corporation.
    Misconduct by corporate official is a class B misdemeanor.

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