17-5412. Declaration of dividends.
17-5412
17-5412. Declaration of dividends.
The board of directors of any association formed under the provisions of
this or any previous act may from time to time declare dividends from the
earnings of the association to be paid or credited in such manner as may be
provided in the bylaws, but no dividends shall be declared except from the
earnings and undivided profits of the association. If the board of directors
shall declare, credit or pay any dividend
when there is an impairment of capital they shall be jointly and severally
liable to the extent of the dividend so declared, credited or paid for all
the debts of the association then existing or that shall be thereafter
contracted while they shall respectively continue in office. Any of the board
of directors who shall object to the declaring of
such dividend or the payment or crediting of the same and who shall at the
time of declaration of the dividend procure objections to be noted in
the book of minutes of the association and shall file a certificate of such
objections in writing with the secretary of the association and with the
commissioner shall be exempted from such liability and any director of such
association who consents to the payment of any dividend when the capital is
impaired shall be deemed guilty of a felony and upon conviction thereof
shall be imprisoned in the custody of the secretary
of corrections for not less than one nor more
than five years.
History: L. 1943, ch. 133, § 70; L. 1967, ch. 129, §
2;
L. 1990, ch. 309, § 6; May 24.