STATE OF OKLAHOMA

1st Session of the 52nd Legislature (2009)

SENATE BILL 1224	By:	Nichols

AS INTRODUCED

An Act relating to corporations; amending 18 O.S. 2001, Section 433, which relates to illegal dividends; making language gender neutral; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     18 O.S. 2001, Section 433, is amended to read as follows:
Section 433.  If the directors of such corporation shall declare and pay any dividend or apportionment of earnings, or profits to members or nonmembers when the corporation is insolvent or when it would be rendered insolvent by such payment, such directors shall be jointly and severally liable for all debts of the corporation then existing and for all such debts as shall be thereafter incurred while they shall respectively continue in office.  Any director may relieve himself or herself from such liability at any time before the time fixed for the payment of such dividend or apportionment by filing a certificate in writing of his or her objection with the secretary of the corporation, and with the county clerk of the county in which the principal office is located.
SECTION 2.  This act shall become effective November 1, 2009.

52-1-1498	TEK	1/15/2009 9:22:37 PM