California Corporations Code

§ 7236

CORP § 7236 Effective Jan 1, 2001Div. 2 · Title 1 · Part 3 · Ch. 2 · Art. 3

Statute text

(a)Subject to the provisions of Section 7231, directors of a corporation who approve any of the following corporate actions shall be jointly and severally liable to the corporation for the benefit of all of the creditors entitled to institute an action under paragraph (1) or (2) of subdivision (c) or to the corporation in an action by the head organization or members under paragraph (1) or (3) of subdivision (c):

(1)The making of any distribution contrary to Chapter 4 (commencing with Section 7410).

(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 Chapter 15 (commencing with Section 8510), Chapter 16 (commencing with Section 8610), and Chapter 17 (commencing with Section 8710).

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Legislative history

Amended by Stats. 2000, Ch. 135, Sec. 23. Effective January 1, 2001.