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KRS 271B.6-220

Liability of shareholders

Known as the Kentucky Business Corporation Act

The act spans §§ 271–271 (197 sections).

Applied in 5 court decisions — leading case Inter-Tel Technologies, Inc. v. Linn Station Properties, LLC (2012)

Most recently applied in CNH Capital America LLC v. Hunt Tractor, Inc. (June 2014)

Effective: July 12, 2012 History: Amended 2012 Ky

How often courts cite this section

2011201420
citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(1) A purchaser from a corporation of its own shares shall not be liable to the corporation or its creditors with respect to the shares except to pay the consideration for which the shares were authorized to be issued or specified in the subscription agreement.

(2) Unless otherwise provided in the articles of incorporation, a shareholder of a corporation shall not be personally liable for the acts or debts of the corporation except that he or she may become personally liable by reason of his own acts or conduct.

(3) That a corporation has a single shareholder is not a basis for setting aside the rule recited in subsection (2) of this section.

Official source: Kentucky General Assembly. Reproduced from public-domain Kentucky statutes; confirm against the official source for the current text. Not legal advice.