Massachusetts § 37 - Directors' liability
Full text of Massachusetts Massachusetts General Laws § 37 — Directors' liability, with citation guidance and answers to common questions.
§ 37. Directors' liability
Section 37. The directors of every corporation shall be jointly and severally liable for the debts and contracts of the corporation in the following cases:
First. For declaring or assenting to a dividend if the corporation is, or thereby is rendered, bankrupt or insolvent, to the extent of such dividend.
Second. For debts contracted between the time of making or assenting to a loan to a stockholder or director and the time of its repayment, to the extent of such loan.
Directors who vote against declaring said dividend or who vote against making said loan shall not be liable as aforesaid.
Frequently Asked Questions About Massachusetts § 37
What does Massachusetts General Laws § 37 cover?
Section 37 ("Directors' liability") is part of the Massachusetts General Laws, the codified statutory law of Massachusetts. 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 Massachusetts § 37?
A common citation format is "Massachusetts General Laws § 37" (Massachusetts). 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 Massachusetts law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Massachusetts official source linked on this page or consult a licensed Massachusetts attorney.
How does Massachusetts § 37 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Massachusetts 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 Massachusetts.