47-30-5. Fraudulent corporate insolvency--Participating directors--Misdemeanor.
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/sd/title-47/chapter-47-30/47-30-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Every insolvency of a corporation is deemed fraudulent unless its affairs appear, upon investigation, to have been administered fairly and legally, and generally with the same care and diligence that agents receiving a compensation for their services are bound by law to observe. In every case of a fraudulent insolvency of a corporation, every director thereof who participated in such fraud, if no other punishment is prescribed therefor, is guilty of a Class 2 misdemeanor.