Georgia § 14-2-832 - Liability for unlawful distributions.
Full text of Georgia Official Code of Georgia Annotated § 14-2-832 — Liability for unlawful distributions., with citation guidance and answers to common questions.
§ 14-2-832. Liability for unlawful distributions.
A director who votes for or assents to a distribution made in violation of Code Section 14-2-640 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 Code Section 14-2-640 or the articles of incorporation if it is established that he did not perform his duties in compliance with Code Section 14-2-830. In any proceeding commenced under this Code section, a director has all of the defenses ordinarily available to a director. A director held liable under subsection (a) of this Code section for an unlawful distribution is entitled to contribution: From every other director who could be held liable under subsection (a) of this Code section for the unlawful distribution; and From each shareholder for the amount the shareholder accepted knowing the distribution was made in violation of Code Section 14-2-640 or the articles of incorporation. A proceeding under this Code section is barred unless it is commenced within two years after the date on which the effect of the distribution was measured under subsection (e) or (g) of Code Section 14-2-640 . (Code 1981, § 14-2-831 , enacted by Ga. L. 1988, p. 1070, § 1; Code 1981, § 14-2-832 , as redesignated by Ga. L. 1989, p. 946, § 33.) Editor's notes. - Ga. L. 1989, p. 946, § 33, effective July 1, 1989, renumbered former Code Section 14-2-831 as present Code Section 14-2-832.
Source: official Georgia text · Last verified 2026-08-27
Frequently Asked Questions About Georgia § 14-2-832
What does Official Code of Georgia Annotated § 14-2-832 cover?
Section 14-2-832 ("Liability for unlawful distributions.") is part of the Official Code of Georgia Annotated, the codified statutory law of Georgia. 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 Georgia § 14-2-832?
A common citation format is "Official Code of Georgia Annotated § 14-2-832" (Georgia). 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 Georgia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Georgia official source linked on this page or consult a licensed Georgia attorney.
How does Georgia § 14-2-832 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Georgia 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 Georgia.