If the directors or trustees of any company shall declare or pay any dividend the payment of which would render it insolvent, or which would create a debt against such company, they shall be jointly and severally liable as guarantors for all the debts of the company then existing, and for all that shall be thereafter contracted while they shall, respectively, remain in office.
(Mar. 3, 1901, 31 Stat. 1308, ch. 854, § 739.)
1981 Ed., § 26-427.
1973 Ed., § 26-327.
This section is referenced in § 26-1328.
Structure District of Columbia Code
Title 26 - Banks and Other Financial Institutions
Chapter 13 - Trust, Loan, Mortgage, Safe Deposit and Title Corporations
§ 26–1301. Manner of formation; purposes
§ 26–1304. Organization certificate; execution; contents
§ 26–1305. Charter of incorporation — Power of Council to grant or refuse
§ 26–1306. Charter of incorporation — Notice of application
§ 26–1309. Powers of companies; liability as trustee
§ 26–1310. Appointment as fiduciary
§ 26–1311.01. Automatic substitution of fiduciaries
§ 26–1312. Stock, property, and liability to be security when fiduciary
§ 26–1313. Existing companies; certificate of intention to comply with provisions
§ 26–1314. Real property held and conveyed by companies
§ 26–1315. Duration of charter
§ 26–1317. Capital stock — Calls; sale on failure to pay money subscribed
§ 26–1318. Annual reports — Publication; contents; verification
§ 26–1319. Annual reports — Liability of directors or trustees
§ 26–1320. Wilful false swearing; misappropriation
§ 26–1321. Stock deemed personal estate; transfer; contents of certificates
§ 26–1322. Liability of stockholders
§ 26–1323. Payment of stock to be in money only; exception
§ 26–1324. Election of, and management of company by, directors or trustees
§ 26–1325. Officers; security authorized
§ 26–1326. Power to make bylaws; purposes thereof
§ 26–1327. Liability of directors or trustees on declaration of dividends — Conditions
§ 26–1328. Liability of directors or trustees on declaration of dividends — Exemption
§ 26–1329. Directors or trustees personally liable when liabilities exceed assets
§ 26–1330. Fiduciary not liable as stockholder; liability of estate and funds
§ 26–1331. Increase or decrease of capital stock
§ 26–1332. Copy of certificate as evidence
§ 26–1333. Security required for performance of fiduciary duties; liability thereon
§ 26–1334. Powers of probate court
§ 26–1335. Compliance required of foreign corporations or companies
§ 26–1336. Right of Congress to amend or repeal chapter; remedies preserved