A.R.S. § 10-11636 — Civil liability for false or misleading filings; exceptions

Civil liability for false or misleading filings; exceptions

Planned Communities & Condominiums · Text verified 2026-07-25

In plain English: Creates liability for knowingly filing false or misleading documents with the Commission. A person who authorizes or signs a report, certificate, notice, or other document filed with the Commission, knowing at the time that its information is materially false or misleading, is liable to the corporation and its creditors for all resulting damages, and the prevailing party is entitled to costs and reasonable attorney fees. Such an action must be brought within two years after the false statement is or reasonably would have been discovered, but no later than six years after filing. Signing a consent to serve as statutory agent does not by itself certify the accuracy of the document's information, and this section does not block equitable remedies where appropriate.

10-11636. Civil liability for false or misleading filings; exceptions

A. Except as provided in subsection C or D of this section, any person that authorizes or signs a report, certificate, notice or other document with respect to a corporation that is delivered for filing with the commission pursuant to this chapter and that has knowledge at the time of delivery to the commission for filing that the information contained in that report, certificate, notice or other document is materially false or misleading is liable to the corporation and its creditors for all damages resulting from the act. The prevailing party in an action for the liability imposed under this subsection is entitled to an award for the prevailing party's costs and reasonable attorney fees.

B. An action for the liability imposed by subsection A of this section must be commenced within two years after the discovery of the false or misleading statement or the time a reasonable person would have discovered it, but not later than six years after the report, certificate, notice or other document was filed or received by the commission.

C. Execution of a consent to serve as a statutory agent does not by itself constitute a certification of the truth or accuracy of the information contained in a report, certificate, notice or other document with respect to the corporation even if the consent is attached to another filing.

D. This section does not prevent the award of equitable remedies, if appropriate.

Source: A.R.S. § 10-11636 — Arizona State Legislature