Cooperative Credit Associations Act

Marginal note:Directors’ liability

• 211 (1) The directors of an association who vote for or consent to a resolution of the directors authorizing the issue of a membership share or share contrary to subsection 74(1) or the issue of subordinated indebtedness contrary to section 87 for a consideration other than money are jointly and severally liable to the association to make good any amount by which the consideration received is less than the fair equivalent of the money that the association would have received if the membership share, share or subordinated indebtedness had been issued for money on the date of the resolution.

• Marginal note:Further liabilities

  (2) The directors of an association who vote for or consent to a resolution of the directors authorizing

  • (a) a redemption or purchase of membership shares or shares contrary to section 79,

  • (b) a reduction of capital contrary to section 82,

  • (c) a payment of a dividend contrary to section 86,

  • (d) a payment of an indemnity contrary to section 216, or

  • (e) any transaction contrary to Part XII

  are jointly and severally liable to restore to the association any amounts so distributed or paid and not otherwise recovered by the association and any amounts in relation to any loss suffered by the association.