§ 2-312. Liability for distributions
West's Annotated Code of MarylandCorporations and Associations
MD Code, Corporations and Associations, § 2-312
§ 2-312. Liability for distributions
(a) If it is established that the director's duties were not performed in compliance with § 2-405.1 of this title, a director who votes for or assents to a distribution made in violation of the charter or § 2-311 of this subtitle is personally liable to the corporation for the amount of the distribution that exceeds what could have been made without violating the charter or § 2-311 of this subtitle.
(b) A director held liable under subsection (a) of this section for an unlawful distribution is entitled to contribution:
(c)(1) A proceeding to enforce the liability of a director under subsection (a) of this section may not begin more than 3 years after the date on which the effect of the distribution was measured under § 2-311(c) or (e) of this subtitle.
Credits
Added by Acts 1988, c. 280, § 1; Acts 1988, c. 281, § 1. Amended by Acts 1992, c. 621; Acts 1993, c. 5, § 1.
MD Code, Corporations and Associations, § 2-312, MD CORP & ASSNS § 2-312
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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