56-3-108 - Dividends Unauthorized payment Penalty. - Tennessee Statutes

56-3-108. Dividends Unauthorized payment Penalty.

(a)  It is not lawful for the directors, trustees, or managers of any insurance company incorporated by the laws of this state to make any dividend except from the surplus profits.

(b)  Any dividend made contrary to this chapter shall subject the company making the dividend to a forfeiture of its charter, and each stockholder receiving it to a liability to the creditors of the company to the extent of double the amount of the dividend declared.

[Acts 1895, ch. 160, § 25; Shan., § 3309; Code 1932, § 6129; T.C.A. (orig. ed.), §§ 56-234, 56-329.]