§ 58-7-125. Dividends not payable when capital stock impaired; liability of stockholders for unlawful dividends. - North Carolina Statutes

§58‑7‑125.  Dividends not payable when capital stock impaired;liability of stockholders for unlawful dividends.

No dividend shall be paid byany company incorporated in this State when its capital stock is impaired, orwhen such payment would have the effect of impairing its capital stock; and anydividend so paid subjects the stockholders receiving it to a joint and severalliability to the creditors of said company to the extent of the dividend sopaid. (1899, c. 54, s. 31; 1903, c. 536, s. 3; Rev., s.4736; C.S., s. 6339; 1945, c. 386.)