§ 7-58-1008 — Liability for improper distributions - limitation of action

Colorado § 7-58-1008

• Jurisdiction: Colorado
• Title 07: Corporations
• Art.: Uniform Limited Cooperative Association Act

Text

(1) A
director who consents to a distribution that violates section 7-58-1007 is personally
liable to the limited cooperative association for the amount of the distribution that
exceeds the amount that could have been distributed without the violation if it is
established that, in consenting to the distribution, the director failed to comply with
section 7-58-818 or 7-58-819.

(2) A member or transferee of financial rights that received a distribution
knowing that the distribution was made in violation of section 7-58-1007 is
personally liable to the limited cooperative association to the extent that the
distribution exceeded the amount that could have been properly paid.

(3) A director against whom an action is commenced under subsection (1) of
this section may:

(a) Implead in the action any other director who is liable under subsection (1)
of this section and compel contribution from the director; and

(b) Implead in the action any person that is liable under subsection (2) of this
section and compel contribution from the person in the amount the person received
as described in subsection (2) of this section.

(4) An action under this section is barred if it is commenced later than three
years after the distribution.

Legislative History

Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 801, � 1, effective April 2, 2012.