All persons purporting to act as or on behalf of a corporation, knowing there was no incorporation under this chapter, are jointly and severally liable for all liabilities created while so acting.
Ark. Code Ann. § 4-27-204
Liability for preincorporation transactions
Known as the Arkansas Business Corporation Act
The act spans §§ 4–4 (323 sections).
Applied in 2 court decisions — leading case 43 Ark. App. 127 - Harris v. Looney (1993)
Most recently applied in 707 F. Supp. 2d 811 - Old St. Paul Missionary Baptist Church v. First Nation Insurance Group (April 2010)
Acts 1987, No. 958, § 64-204.
Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.