Section 16-120-704 - Transfer of assets to avoid claims

If a nonprofit corporation transfers assets to a member of the board of directors of the corporation or to another nonprofit corporation in order to avoid claims against corporate assets resulting from a judgment rendered as a result of a suit to recover damages for the negligence of the corporation, a corporate employee or a director, the director to whom the asset is transferred, or any director of the corporation from which assets are transferred to avoid those claims may be held personally liable for any judgment rendered. The immunity provided by this subchapter shall be of no force or effect.Acts 1987, No. 970, § 5.