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December 21, 2024 Clouds | 28°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 20: Commencement of business; liability of officers, contribution

Section 20. A corporation subject to this chapter shall not begin business until the whole amount of its capital stock, or such part thereof as may have been approved by the department, has been paid in and a certificate of that fact has been filed in accordance with section ten. The president, directors and other officers shall be jointly and severally liable for debts contracted on behalf of the corporation before such payment has been made and such certificate has been filed. Any director or officer who pays on a judgment rendered on a claim asserted under this section shall be entitled to contribution in the manner and to the extent provided in section sixty-six of chapter one hundred and fifty-six B.