76-16-208. Illegal concurrence by a director in a dividend or division of capital.
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Effective 5/7/2025
76-16-208. Illegal concurrence by a director in a dividend or division of capital.
(a)For purposes of this section, "director" does not include a director of:
(i)a savings and loan association; or
(ii)a building and loan association.
(b)Terms defined in Sections 76-1-101.5 , 76-16-101 , and 76-16-201 apply to this section.
(2)An actor commits illegal concurrence by a director in a dividend or division of capital if the actor:
(a)is a director of a stock corporation; and
(b)concurs in a vote or act of one or more directors of the corporation, which vote or act is intended to either:
(i)make a dividend except as permitted by Title 16, Chapter 10a, Utah Revised Business Corporation Act ; or
(ii)divide, withdraw, or in any manner pay to one or more stockholders any part of the stated capital of the corporation except as permitted by Title 16, Chapter 10a, Utah Revised Business Corporation Act .
(3)A violation of Subsection
(2)is a class B misdemeanor.
Renumbered and Amended by Chapter 173 , 2025 General Session