47-17-7. Liability of directors for improper distribution of assets.
Directors of cooperatives who negligently or in bad faith vote for any distribution of assets contrary to chapters 47-15 to 47-20, inclusive, or the articles are jointly and severally liable to the cooperative for the value of assets distributed in excess of the amount which could have been distributed without violating said chapters or the articles.
Source: SDC 1939, §11.1129 as enacted by SL 1965, ch 23, §1.
Structure South Dakota Codified Laws
Chapter 17 - Cooperatives--Directors, Officers And Employees
Section 47-17-1 - Board of directors as manager of cooperative--Qualifications of directors.
Section 47-17-2 - Compensation of directors.
Section 47-17-3 - Number of directors.
Section 47-17-5 - Removal of directors.
Section 47-17-6 - Vacancies on board of directors.
Section 47-17-7 - Liability of directors for improper distribution of assets.
Section 47-17-8 - Board meetings.
Section 47-17-9 - Quorum at meeting.
Section 47-17-10 - Waiver of notice of meeting.
Section 47-17-11 - Specification of purpose of meeting.
Section 47-17-12 - Directors' executive committee--Powers of committee.
Section 47-17-13 - Action without meeting of directors--Written consent.
Section 47-17-14 - Principal officers of cooperative--Election by board of directors.
Section 47-17-15 - Other officers.
Section 47-17-16 - Authority of officers.
Section 47-17-17 - Removal of officers.
Section 47-17-18 - Compensation of officers.