(Effective January 1, 2027) Liability for unlawful distributions
Va. Code Ann. § 13.1-871.2
in effectA. A director who votes for or assents to a distribution in excess of what may be authorized and made pursuant to this chapter, the articles of incorporation, or the bylaws is personally liable to the corporation and its creditors for the amount of the distribution that exceeds what could have been distributed without violating this chapter, the articles of incorporation, or the bylaws provided that the party asserting liability establishes that when taking the action the director did not comply with § 13.1-870 .
B. A director held liable for an unlawful distribution under subsection A is entitled to:
1. Contribution from every other director who could be held liable under subsection A for the unlawful distribution; and
2. Recoupment from the members who received the unlawful distribution in proportion to the amounts of such unlawful distribution received by them respectively.
C. No suit shall be brought against any director for any liability imposed by subsection A except within two years after the right of action shall accrue.
D. Contribution or recoupment under subsection B is barred unless it is commenced within one year after the liability of the claimant has been finally adjudicated under subsection A.
2026, cc. 393 , 394 .
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://law.lis.virginia.gov/vacode/13.1-871.2/Fetched: 10/16/2026