Nevada § 78.300 - Liability of directors for unlawful distributions
Full text of Nevada Nevada Revised Statutes § 78.300 — Liability of directors for unlawful distributions, with citation guidance and answers to common questions.
§ 78.300. Liability of directors for unlawful distributions
1. The directors of a corporation shall not make distributions except as provided
by this chapter. 2. Except as otherwise provided in subsection 3 and NRS 78.138 , in case of any violation of the provisions of this section, the directors under
whose administration the violation occurred are jointly and severally liable, at any
time within 3 years after each violation, to the corporation, and, in the event of
its dissolution or insolvency, to its creditors at the time of the violation, or any
of them, to the lesser of the full amount of the distribution made or of any loss
sustained by the corporation by reason of the distribution. 3. The liability imposed pursuant to subsection 2 does not apply to a director who
caused his or her dissent to be entered upon the minutes of the meeting of the directors
at the time the action was taken or who was not present at the meeting and caused
his or her dissent to be entered on learning of the action.
Source: official Nevada text · Last verified 2026-08-27
Frequently Asked Questions About Nevada § 78.300
What does Nevada Revised Statutes § 78.300 cover?
Section 78.300 ("Liability of directors for unlawful distributions") is part of the Nevada Revised Statutes, the codified statutory law of Nevada. 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 Nevada § 78.300?
A common citation format is "Nevada Revised Statutes § 78.300" (Nevada). 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 Nevada law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Nevada official source linked on this page or consult a licensed Nevada attorney.
How does Nevada § 78.300 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Nevada 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 Nevada.