(a) Directors.--Except as otherwise provided pursuant to section 1713 (relating to personal liability of directors), a director who votes for or assents to any dividend or other distribution contrary to the provisions of this subpart or contrary to any restrictions contained in the bylaws shall, if he has not complied with the standard provided in or pursuant to section 1712 (relating to standard of care, justifiable reliance and business judgment rule), be liable to the corporation, jointly and severally with all other directors so voting or assenting, for the amount of the dividend that is paid or the value of the other distribution in excess of the amount of the dividend or other distribution that could have been made without a violation of the provisions of this subpart or the restrictions in the bylaws.
(b) Contribution by shareholders.--Any director against whom a claim is asserted under or pursuant to this section for the making of a distribution and who is held liable thereon shall be entitled to contribution from the shareholders who accepted or received any such distribution, knowing the distribution to have been made in violation of this subpart, in proportion to the amounts received by them.
(c) Contribution by other directors.--Any director against whom a claim is asserted under or pursuant to this section shall be entitled to contribution from any other director who voted for or assented to the action upon which the claim is asserted and who did not comply with the standard provided by or pursuant to this subpart for the performance of the duties of directors.
(d) Limitation of actions.--See 42 Pa.C.S. § 5524(5) (relating to two year limitation).
(e) Contrary articles ineffective.--Except as provided by subsection (a), this section may not be varied by any provision of the articles.
(Dec. 19, 1990, P.L.834, No.198, eff. imd.; Nov. 3, 2022, P.L.1791, No.122, eff. 60 days)
2022 Amendment. Act 122 amended subsec. (a).
1990 Amendment. Act 198 amended subsec. (a) and added subsec. (e).
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 15 - Corporate Powers, Duties and Safeguards
Section 1501 - Corporate capacity
Section 1503 - Defense of ultra vires
Section 1504 - Adoption, amendment and contents of bylaws
Section 1505 - Persons bound by bylaws
Section 1506 - Form of execution of instruments
Section 1507 - Registered office
Section 1508 - Corporate records; inspection by shareholders
Section 1509 - Bylaws and other powers in emergency
Section 1510 - Certain specifically authorized debt terms
Section 1511 - Additional powers of certain public utility corporations
Section 1512 - Informational rights of a director
Section 1513 - Forum selection provisions
Section 1521 - Authorized shares
Section 1522 - Issuance of shares in classes or series; board action
Section 1523 - Pricing and issuance of shares
Section 1524 - Payment for shares
Section 1525 - Stock rights and options
Section 1526 - Liability of shareholders
Section 1527 - Issuance of fractional shares or scrip
Section 1528 - Shares represented by certificates and uncertificated shares
Section 1529 - Transfer of securities; restrictions
Section 1530 - Preemptive rights of shareholders
Section 1531 - Voting powers and other rights of certain securityholders and other entities
Section 1532 - Effect of failure to surrender securities converted by reorganization
Section 1551 - Distributions to shareholders
Section 1552 - Power of corporation to acquire its own shares
Section 1553 - Liability for unlawful dividends and other distributions
Section 1554 - Financial reports to shareholders
Section 1571 - Application and effect of subchapter
Section 1573 - Record and beneficial holders and owners
Section 1574 - Notice of intention to dissent
Section 1575 - Notice to demand payment
Section 1576 - Failure to comply with notice to demand payment, etc
Section 1577 - Release of restrictions or payment for shares
Section 1578 - Estimate by dissenter of fair value of shares