California Corporations Code

§ 5237

CORP § 5237 Effective Jan 1, 2000Div. 2 · Title 1 · Part 2 · Ch. 2 · Art. 3

Statute text

(a)Subject to the provisions of Section 5231, directors of a corporation who approve any of the following corporate actions shall be jointly and severally liable to the corporation for:

(1)The making of any distribution.

(2)The distribution of assets after institution of dissolution proceedings of the corporation, without paying or adequately providing for all known liabilities of the corporation, excluding any claims not filed by creditors within the time limit set by the court in a notice given to creditors under Chapters 15 (commencing with Section 6510), 16 (commencing with Section 6610) and 17 (commencing with Section 6710).

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Legislative history

Amended by Stats. 1999, Ch. 453, Sec. 2. Effective January 1, 2000.