{"data":{"id":"us-sd/sdcl-47-1a-833","jurisdiction":"us-sd","citation":"SDCL § 47-1A-833","heading":"Directors' liability for unlawful distributions.","body":"A director who votes for or assents to a distribution in excess of what may be authorized and made pursuant to § 47-1A-640 or 47-1A-1409 is personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating § 47-1A-640 or 47-1A-1409 if the party asserting liability establishes that when taking the action the director did not comply with §§ 47-1A-830 and 47-1A-830.1. A proceeding to enforce the liability of a director under this section is barred unless it is commenced within two years after the date:\n(1) On which the effect of the distribution was measured under § 47-1A-640.2 or 47-1A-640.4;\n(2) As of which the violation of § 47-1A-640 occurred as the consequence of disregard of a restriction in the articles of incorporation; or\n(3) On which the distribution of assets to shareholders under § 47-1A-1409 was made.","path":["TITLE 47. CORPORATIONS","CHAPTER 47-1A. SOUTH DAKOTA BUSINESS CORPORATION ACT"],"source_url":"https://sdlegislature.gov/Statutes/47-1A-833","current_through":"2026-08-31","vintage":"","retrieved_at":"2026-09-03T15:18:57Z","sha256":"a8f04a8f874f8b8662486874256d2149cdbe18d26c0258cfcabac268cbc661fd","source_id":"us-sd","stale":true,"prev":"us-sd/sdcl-47-1a-832","next":"us-sd/sdcl-47-1a-833.1"},"notice":"GroundRules: Original legal text. Not legal advice."}