Arkansas § 4-27-833 - Liability for unlawful distributions.
Full text of Arkansas Arkansas Code of 1987 Annotated § 4-27-833 — Liability for unlawful distributions., with citation guidance and answers to common questions.
§ 4-27-833. Liability for unlawful distributions.
Unless he complies with the applicable standards of conduct described in § 4-27-830, a director who votes for or assents to a distribution made in violation of this chapter 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 this chapter or the articles of incorporation. A director held liable for an unlawful distribution under subsection (a) of this section is entitled to contribution: from every other director who voted for or assented to the distribution without complying with the applicable standards of conduct described in § 4-27-830; and from each shareholder for the amount the shareholder accepted knowing the distribution was made in violation of this chapter or the articles of incorporation.
Source: official Arkansas text · Last verified 2026-08-27
Frequently Asked Questions About Arkansas § 4-27-833
What does Arkansas Code of 1987 Annotated § 4-27-833 cover?
Section 4-27-833 ("Liability for unlawful distributions.") is part of the Arkansas Code of 1987 Annotated, the codified statutory law of Arkansas. 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 Arkansas § 4-27-833?
A common citation format is "Arkansas Code of 1987 Annotated § 4-27-833" (Arkansas). 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 Arkansas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Arkansas official source linked on this page or consult a licensed Arkansas attorney.
How does Arkansas § 4-27-833 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Arkansas 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 Arkansas.