Distribution of dividends among the shareholders shall not be made in the following cases: 1. if as a result of the the distribution the company’s ability to pay its debts and financial liabilities on time will be affected; 2. if the distribution is a result of fictitious profits; 3. if the company sustains a loss which has not been fully extinguished. Creditors of the company may petition the court to invalidate any distribution made contrary to the aforesaid. The members of the board of directors who proposed or approved the distribution shall be jointly liable to creditors within the limit of the profits the distribution of which is adjudged invalid.
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