Minn. Stat. § 302A.557

LIABILITY OF SHAREHOLDERS FOR ILLEGAL DISTRIBUTIONS.

Known as the Minnesota Business Corporation Act

The act spans §§ 302–302 (139 sections).

Applied in 5 court decisions — leading case Wessin v. Archives Corp. (1999)

Most recently applied in EEP Workers' Compensation Fund v. Fun & Sun, Inc. (February 2011)

1981 c 270 s 87

How often courts cite this section

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.

Subdivision 1. Liability.

A shareholder who receives a distribution made in violation of the provisions of section 302A.551 is liable to the corporation, its receiver or other person winding up its affairs, or a director under section 302A.559, subdivision 2 , but only to the extent that the distribution received by the shareholder exceeded the amount that properly could have been paid under section 302A.551 .

Subd. 2. Statute of limitations.

An action shall not be commenced under this section more than two years from the date of the distribution.

Official source: Minnesota Office of the Revisor of Statutes. Reproduced from public-domain Minnesota statutes; confirm against the official source for the current text. Not legal advice.