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- Alaska Statutes.
- Title 10. Corporations and Associations
- Chapter 6. Alaska Corporations Code
- Section 675. Recovery of Amounts Improperly Distributed.
previous: Section 673
. Plan of Distribution; Adoption; Binding Effect; Notice; Payment to Dissenting Shareholders; Abandonment.
next: Section 678
. Continued Existence of Dissolved Corporations; Purposes; Abatement or Commencement of Actions; Distribution of Omitted Assets.
AS 10.06.675. Recovery of Amounts Improperly Distributed.
- (a) If a distribution of assets has been made in the process of winding up a corporation without a court order and without
prior payment or adequate provision for payment of the debts and liabilities of the corporation, the amount improperly
distributed to a shareholder may be recovered by the corporation. Shareholders who received an improper distribution
may be joined as a party in the same action.
- (b) Suit may be brought in the name of the corporation to enforce the liability under (a) of this section against a
shareholder receiving an improper distribution by a creditor of the corporation, whether or not the creditor has
reduced the claim of the creditor to judgment.
- (c) A shareholder who satisfies a liability under this section has the right of ratable contribution from other
distributees who are similarly liable. A shareholder who has been compelled to return to the corporation more than the
shareholder's ratable share of the amount needed to pay the debts and liabilities of the corporation may require that
the corporation recover from any or all of the other distributees the proportion of the amounts received by them by the
improper distribution necessary to give contribution to shareholders held liable under this section and to make the
distribution of the assets fair and ratable, according to the respective rights and preferences of the shares, after
payment or adequate provision for payment of all the debts and liabilities of the corporation.
- (d) In this section, "process of winding up" includes proceedings under AS 10.06.605
- 10.06.678 and other distributions of assets to
shareholders made in contemplation of termination or abandonment of the corporate business.
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