(1) A director who votes for or assents to a distribution made in violation of section 7-106-401 or the articles of incorporation is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating section 7-106-401 or the articles of incorporation if it is established that the director did not perform the director's duties in compliance with section 7-108-401. In any proceeding commenced under this section, a director has all of the defenses ordinarily available to a director.
(2) A director held liable under subsection (1) of this section for an unlawful distribution is entitled to contribution:
From every other director who could be held liable under subsection (1) of this section for the unlawful distribution; and
From each shareholder who accepted the distribution knowing the distribution wasmade in violation of section 7-106-401 or the articles of incorporation, the amount of the contribution from the shareholder being the amount of the distribution to that shareholder that exceeds what could have been distributed to that shareholder without violating section 7-106401 or the articles of incorporation.
Source: L. 2019: Entire part amended with relocations, (SB 19-086), ch. 166, p. 1933, § 35, effective July 1, 2020.
Editor's note: This section is similar to former § 7-108-403 as it existed prior to July 1, 2020.