{"data":{"id":"us-al/ala.-code-10a-3a-8.32","jurisdiction":"us-al","citation":"Ala. Code § 10A-3A-8.32","heading":"Directors’ Liability for Unlawful Distributions.","body":"(a) A director who votes for or assents to a distribution in excess of what may be authorized and made pursuant to Section 10A-3A-6.40 or Section 10A-3A-11.07 is personally liable to the nonprofit corporation for the amount of the distribution that exceeds what could have been distributed without violating Section 10A-3A-6.40 or Section 10A-3A-11.07 if the party asserting liability establishes that when taking the action the director did not comply with Section 10A-3A-8.30.\n(b) A director held liable under subsection (a) for an unlawful distribution is entitled to:\n(1) contribution from every other director who could be held liable under subsection (a) for the unlawful distribution; and\n(2) recoupment from each person of the pro-rata portion of the amount of the unlawful distribution the person received, whether or not the person knew the distribution was made in violation of Section 10A-3A-6.40 or Section 10A-3A-11.07.\n(c) A proceeding to enforce:\n(1) the liability of a director under subsection (a) is barred unless it is commenced within two years after the date on which the distribution was made; or\n(2) contribution or recoupment under subsection (b) is barred unless it is commenced within one year after the liability of the claimant has been finally adjudicated under subsection (a).","path":["Title 10A Alabama Business and Nonprofit Entities Code.","Chapter 3A Alabama Nonprofit Corporation Law.","Article 8 Directors and Officers.","Division C Directors."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=10A-3A-8.32","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:54Z","sha256":"4385dd74b256de5512d2f7d1c386648e1b0b760f95ee818c252867e11f090e97","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-10a-3a-8.31","next":"us-al/ala.-code-10a-3a-8.33"},"notice":"GroundRules: Original legal text. Not legal advice."}