New Mexico § 63-1-18 - Declaring dividends; restrictions; liability of directors

§ 63-1-18. Declaring dividends; restrictions; liability of directors

The directors must not make or declare dividends, except from the surplus profits

arising from the business of the corporation; nor must they withdraw, divide or pay

to the stockholders, or any of them, any part of the capital stock, nor must they

create debts beyond their subscribed capital stock, or reduce or increase the capital

stock, except as hereinafter specially provided. For a violation of the provisions of this section, the directors under whose administration

the same may have happened, except those who may have caused their dissent therefrom

to be entered at large on the minutes of the proceedings of the directors at the time,

or were not present when the same did happen, shall be, in their individual and private

capacity, jointly and severally liable to the corporation, and to the creditors thereof

in the event of its dissolution, to the full amount of the capital stock so divided,

withdrawn, paid out or reduced or debt contracted; and no statute of limitations

shall be a bar to any suit against such directors for any sums for which they are

made liable by this section. There may, however, be a division and distribution of the capital stock and property

of the corporation which may remain after the payment of all its debts, upon the dissolution

of the corporation or the expiration of its term of existence.