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Searching 2019-2020 Session

The Vermont Statutes Online

 

Title 11A : Vermont Business Corporations

Chapter 008 : DIRECTORS AND OFFICERS

Subchapter 003 : STANDARD OF CONDUCT

(Cite as: 11A V.S.A. § 8.33)
  • § 8.33. Liability for unlawful distributions; statute of limitations

    (a) A director who votes for or assents to a distribution made in violation of section 6.40 of this title 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 section 6.40 or the articles of incorporation if it is established that the director did not perform his or her duties in compliance with section 8.30 of this title.

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

    (1) from every other director who could be held liable under subsection (a) for the unlawful distribution; and

    (2) from each shareholder for the amount the shareholder accepted knowing the distribution was made in violation of section 6.40 of this title or the articles of incorporation.

    (c) A proceeding under this section is barred unless it is commenced within six years after the date on which the effect of the distribution was measured under section 6.40(e) of this title. (Added 1993, No. 85, § 2, eff. Jan. 1, 1994.)