Tennessee § 56-3-108 - Dividends — Unauthorized payment — Penalty.
Full text of Tennessee Tennessee Code Annotated § 56-3-108 — Dividends — Unauthorized payment — Penalty., with citation guidance and answers to common questions.
§ 56-3-108. Dividends — Unauthorized payment — Penalty.
It is not lawful for the directors, trustees, or managers of any insurance company incorporated by the laws of this state to make any dividend except from the surplus profits. Any dividend made contrary to this chapter shall subject the company making the dividend to a forfeiture of its charter, and each stockholder receiving it to a liability to the creditors of the company to the extent of double the amount of the dividend declared. Acts 1895, ch. 160, § 25; Shan., § 3309; Code 1932, § 6129; T.C.A. (orig. ed.), §§ 56-234, 56-329. Law Reviews. Legal Problems in the Organization and Operation of Group Health Plans (Horace P. Hansen), 5 Vand. L. Rev. 14 (1951-1952).
Source: official Tennessee text · Last verified 2026-08-27
Frequently Asked Questions About Tennessee § 56-3-108
What does Tennessee Code Annotated § 56-3-108 cover?
Section 56-3-108 ("Dividends — Unauthorized payment — Penalty.") is part of the Tennessee Code Annotated, the codified statutory law of Tennessee. 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 Tennessee § 56-3-108?
A common citation format is "Tennessee Code Annotated § 56-3-108" (Tennessee). 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 Tennessee law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Tennessee official source linked on this page or consult a licensed Tennessee attorney.
How does Tennessee § 56-3-108 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Tennessee 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 Tennessee.