Texas Business Organizations Code - Section 21.318. Contribution From Certain Shareholders And Directors
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Texas Laws > Business Organizations Code > Texas Business Organizations Code - Section 21.318. Contribution From Certain Shareholders And Directors
Section: 21.311 21.312 21.313 21.314 21.315 21.316 21.317 21.318 21.351 21.352 21.353 21.3531 21.354 21.355 21.356
§ 21.318. CONTRIBUTION FROM CERTAIN SHAREHOLDERS AND
DIRECTORS. (a) A director who is held liable for a claim asserted
under Section 21.316 is entitled to receive contributions from
shareholders who accepted or received the wrongful distribution
knowing that it was prohibited by Section 21.303 in proportion to
the amounts received by the shareholders.
(b) A director who is liable for a claim asserted under
Section 21.316 is entitled to receive contributions from each of
the other directors who are liable with respect to that claim in an
amount appropriate to achieve equity.
(c) The liability provided by Subsection (a) is the only
liability of a shareholder to the corporation or a creditor of the
corporation for accepting or receiving a distribution by the
corporation that is prohibited by Section 21.303, except for any
liability under Chapter 24, Business & Commerce Code, or the United
States Bankruptcy Code.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Last modified: August 11, 2007