No corporation or association shall declare any dividend or distribute any money among its members as profits when such dividend or money is not declared or distributed from the actual legitimate net earnings and in any manner increases its debts. Should the president, directors, or other agent of any corporation declare a dividend or dividends in violation of the above provisions they shall be subject to an action for double the amount of damages that any person or persons may sustain in consequence of the declaring of such dividend or dividends.
(Ga. L. 1877, p. 35, §§ 1-3; Code 1882, §§ 4604a, 4604b, 4604c; Penal Code 1895, § 691; Ga. L. 1902, p. 58, § 1; Penal Code 1910, § 740; Code 1933, § 22-713; Code 1933, § 22-4106, enacted by Ga. L. 1968, p. 565, § 1.)
RESEARCH REFERENCES
Am. Jur. 2d.
- 18B Am. Jur. 2d, Corporations, § 1105 et seq.
C.J.S.- 18 C.J.S., Corporations, § 361 et seq. 19 C.J.S., Corporations, §§ 571, 575, 576.
ARTICLE 5 RENEWAL OR REVIVAL OF CHARTER
Law reviews.
- For article, "An Introduction to the New Georgia Corporation Law," see 4 Ga. St. B. J. 419 (1968).
RESEARCH REFERENCES
ALR.
- Extension or renewal of period of corporate existence, 108 A.L.R. 59.
Reinstatement of repealed, forfeited, expired, or suspended corporate charter as validating acts in interim, 13 A.L.R.2d 1220.
Reinstatement of repealed, forfeited, expired, or suspended corporate charter as validating interim acts of corporation, 42 A.L.R.4th 392.