§ 26-1327. Liability of directors or trustees on declaration of dividends-- Conditions.

Current through October 23, 2012

If the directors or trustees of any company shall declare or pay any dividend the payment of which would render it insolvent, or which would create a debt against such company, they shall be jointly and severally liable as guarantors for all the debts of the company then existing, and for all that shall be thereafter contracted while they shall, respectively, remain in office.

                
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(Mar. 3, 1901, 31 Stat. 1308, ch. 854, § 739.)

HISTORICAL AND STATUTORY NOTES

Prior Codifications

1981 Ed., § 26-427.

1973 Ed., § 26-327.