58.1-7 - Same; liability of recipient of improper corporate distribution. - Virginia Statutes

§ 58.1-7. Same; liability of recipient of improper corporate distribution.

If any corporation assessed with a tax, including penalties and interestthereon, distributes its assets without first paying such assessment to theCommonwealth or to the proper political subdivision, as the case may be, anyperson with actual notice of such assessment receiving any moneys or otherproperty from such distribution shall be held personally liable for suchassessment to an amount not in excess of his participation in suchdistribution and any purchaser with actual notice of any such assessmentshall be liable therefor to the extent of the assets of the corporationcoming into his hands. Nothing in this section shall be construed so as toaffect the rights of any bona fide purchaser for value.

(Code 1950, § 58-25; 1984, c. 675.)