§ 29-1010.08 — Liability for improper distributions; limitation of action.

District of Columbia § 29-1010.08

• Jurisdiction: District of Columbia
• Title 29: Business Organizations. [Enacted title]
• Ch. 10: Limited Cooperative Associations.
• Subch. X: Contributions, Allocations, and Distributions.

Text

(a) Except as otherwise provided in subsection (b) of this section, if a director of a limited cooperative association consents to a distribution made in violation of § 29-1010.07 and in consenting to the distribution fails to comply with § 29-1008.18 , the director is personally liable to the association for the amount of the distribution that exceeds the amount which could have been distributed without violating § 29-1010.07 .

(b) A person that receives a distribution knowing that the distribution was made in violation of § 29-1010.07 shall be personally liable to the limited cooperative association to the extent the distribution exceeded the amount that could have been properly paid.

(c) A director against whom an action is commenced under subsection (a) of this section may implead in the action any:

(1) Other person who is liable under subsection (a) of this section and seek to enforce a right of contribution from the person; and

(2) Person that receives a distribution in violation of subsection (b) of this section and may seek to enforce a right of contribution from the person in the amount the person received in violation [of] subsection (b) of this section.

(d) An action under this section shall be barred if it is commenced later than 2 years after the distribution.

Legislative History

July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(j)(6)(B), 59 DCR 13171