Arizona § 10-3833 - Liability for unlawful distributions
Full text of Arizona Arizona Revised Statutes § 10-3833 — Liability for unlawful distributions, with citation guidance and answers to common questions.
§ 10-3833. Liability for unlawful distributions
A. A director who votes for or assents to a distribution made in violation of sections 10-11301 and 10-11302 or the articles of incorporation is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating sections 10-11301 and 10-11302 or the articles of incorporation if it is established that the director's duties were not performed in compliance with section 10-3830.
B. A director of a corporation who is present at a meeting of its board of directors at which action on any distribution in violation of section 10-11301 is taken is presumed to have assented to the action taken unless his dissent is entered in the minutes of the meeting or unless he files his written dissent to the action with the secretary of the meeting before the adjournment of the meeting or forwards the dissent by registered or certified mail to the secretary of the corporation before 5:00 p.m. of the next business day after the adjournment of the meeting. The right to dissent does not apply to a director who voted in favor of the action.
C. A director who is held liable under subsection A of this section for an unlawful distribution is entitled to contribution from:
1. Every other director who could be held liable under subsection A of this section for the unlawful distribution.
2. Each person who received an unlawful distribution for the amount of the distribution whether or not the person receiving the distribution knew it was made in violation of sections 10-11301 and 10-11302 or the articles of incorporation.
D. A proceeding under this section is barred unless it is commenced within two years after the date on which the distribution is made.
Source: official Arizona text · Last verified 2026-08-27
Frequently Asked Questions About Arizona § 10-3833
What does Arizona Revised Statutes § 10-3833 cover?
Section 10-3833 ("Liability for unlawful distributions") is part of the Arizona Revised Statutes, the codified statutory law of Arizona. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Arizona § 10-3833?
A common citation format is "Arizona Revised Statutes § 10-3833" (Arizona). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Arizona law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Arizona official source linked on this page or consult a licensed Arizona attorney.
How does Arizona § 10-3833 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Arizona can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Arizona.