Utah Code 76-10-705. Concurrence by director in dividend or division of capital in violation of law
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Every director of any stock corporation except savings and loan or building and loan associations who concurs in any vote or act of the directors of the corporation or any of them, by which it is intended either:
(1) to make any dividend except as permitted by Title 16, Chapter 10a, Utah Revised Business Corporation Act ; or
Attorney's Note
Under the Utah Code, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| class B misdemeanor | up to 6 months | up to $1,000 |
Terms Used In Utah Code 76-10-705
- Act: means a voluntary bodily movement and includes speech. See Utah Code 76-1-101.5
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Director: means any of the persons having by law the direction or management of the affairs of a corporation, by whatever name the persons are described in its charter or known by law. See Utah Code 76-10-701
(2) to divide, withdraw, or in any manner pay to the stockholders, or any of them, any part of the stated capital of the corporation except as permitted by Title 16, Chapter 10a, Utah Revised Business Corporation Act , is guilty of a class B misdemeanor.