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Official Code of Georgia Annotated

Title 14. CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS · Chapter 3. NONPROFIT CORPORATIONS · Article 8. DIRECTORS AND OFFICERS · Part 3. STANDARDS OF CONDUCT

14-3-831. Liability for unlawful distribution.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

  1. (a)

    Unless a director complies with the applicable standards of conduct described in Code Section 14-3-830, a director who votes for or assents to a distribution made in violation of this chapter is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating this chapter.#

  2. (b)

    A director held liable for an unlawful distribution under subsection (a) of this Code section is entitled to contribution:#

    1. (1)

      From every other director who voted for or assented to the distribution without complying with the applicable standards of conduct described in Code Section 14-3-830; and#

    2. (2)

      From each person who received an unlawful distribution for the amount of the distribution whether or not the person receiving the distribution knew it was made in violation of this chapter.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1981, § 14-3-831, enacted by Ga. L. 1991, p. 465, § 1; Ga. L. 2023, p. 419, § 1-1/SB 148, effective July 1, 2023.

Editor's notes

Ga. L. 2023, p. 419, § 1-1/SB 148, effective July 1, 2023, reenacted this Code section without change.

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t14-(v12)-pdf.pdf, Volume V12, 2017 edition, 2025 supplement, page 120; merge action: replaced; file SHA-256 b004123363dc.