Texas § BO.21.318 - CONTRIBUTION FROM CERTAIN SHAREHOLDERS AND DIRECTORS
Full text of Texas The Texas Constitution § BO.21.318 — CONTRIBUTION FROM CERTAIN SHAREHOLDERS AND DIRECTORS, with citation guidance and answers to common questions.
§ BO.21.318. CONTRIBUTION FROM CERTAIN SHAREHOLDERS AND DIRECTORS
CONTRIBUTION FROM CERTAIN SHAREHOLDERS AND DIRECTORS. (a) A director who is held liable for a claim asserted under Section 21.316 is entitled to receive contributions from shareholders who accepted or received the wrongful distribution knowing that it was prohibited by Section 21.303 in proportion to the amounts received by the shareholders. (b) A director who is liable for a claim asserted under Section 21.316 is entitled to receive contributions from each of the other directors who are liable with respect to that claim in an amount appropriate to achieve equity. (c) The liability provided by Subsection (a) is the only liability of a shareholder to the corporation or a creditor of the corporation for accepting or receiving a distribution by the corporation that is prohibited by Section 21.303 , except for any liability under Chapter 24 , Business & Commerce Code, or the United States Bankruptcy Code. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. SUBCHAPTER H. SHAREHOLDERS' MEETINGS; NOTICE TO SHAREHOLDERS; VOTING AND QUORUM
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § BO.21.318
What does The Texas Constitution § BO.21.318 cover?
Section BO.21.318 ("CONTRIBUTION FROM CERTAIN SHAREHOLDERS AND DIRECTORS") is part of the The Texas Constitution, the codified statutory law of Texas. 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 Texas § BO.21.318?
A common citation format is "The Texas Constitution § BO.21.318" (Texas). 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 Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § BO.21.318 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas 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 Texas.