Liability of Directors for Declaration or Payment of Illegal Dividend

1. Law
2. Georgia Code
3. Insurance
4. Domestic Stock and Mutual Insurers
5. Domestic Mutual Insurers
6. Liability of Directors for Declaration or Payment of Illegal Dividend

Any director of a domestic mutual insurer who willfully and with knowledge votes for or concurs in a declaration or payment of a dividend which reduces surplus below the minimum required surplus shall be guilty of a misdemeanor and shall be jointly and severally liable, together with other such directors likewise voting for or concurring in willfully and with knowledge, for any loss thereby sustained by the insurer.

(Code 1933, § 56-1526, enacted by Ga. L. 1960, p. 289, § 1.)

Cross references.

- Punishment for misdemeanors generally, § 17-10-3.

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