Section 47-17-7 - Liability of directors for improper distribution of assets. - South Dakota Statutes

47-17-7. Liability of directors for improper distribution of assets. Directors of cooperatives who negligently or in bad faith vote for any distribution of assets contrary to chapters 47-15 to 47-20, inclusive, or the articles are jointly and severally liable to the cooperative for the value of assets distributed in excess of the amount which could have been distributed without violating said chapters or the articles.

Source: SDC 1939, § 11.1129 as enacted by SL 1965, ch 23, § 1.