Hawaii Revised Statutes 414D-152 – Liability for unlawful distributions

(a) Unless a director complies with the applicable standards of conduct described in § 414D-149, a director who votes for or assents to a distribution made in violation of this chapter shall be personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating this chapter.

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In Hawaii Revised Statutes 414D-152

Distribution: means the payment of a dividend or any part of the income or profit of a corporation to its members, directors, or officers. See Hawaii Revised Statutes 414D-14
Person: includes any individual or entity. See Hawaii Revised Statutes 414D-14

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

(1) Every other director who voted for or assented to the distribution without complying with the applicable standards of conduct described in § 414D-149; and

(2) 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.

Part VIII Contents

LawServer

Hawaii Revised Statutes 414D-152 – Liability for unlawful distributions

Terms Used In Hawaii Revised Statutes 414D-152

941 Law Help

Law Offices of David W. Barlow