607.0834 Liability for unlawful distributions. - Florida Statutes

607.0834 Liability for unlawful distributions.

   (1) A director who votes for or assents to a distribution made in violation of s. 607.06401 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 s. 607.06401 or the articles of incorporation if it is established that the director did not perform his or her duties in compliance with s. 607.0830. 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) for an unlawful distribution is entitled to contribution:

   (a) From every other director who could be liable under subsection (1) for the unlawful distribution; and

   (b) From each shareholder for the amount the shareholder accepted knowing the distribution was made in violation of s. 607.06401 or the articles of incorporation.

   (3) A proceeding under this section is barred unless it is commenced within 2 years after the date on which the effect of the distribution was measured under s. 607.06401(6) or (8).

History. s. 88, ch. 89-154; s. 150, ch. 90-179; s. 29, ch. 97-102.