§ 30-24-505 — LIABILITY FOR IMPROPER DISTRIBUTIONS

Idaho § 30-24-505

• Jurisdiction: Idaho
• Title 30: CORPORATIONS
• Part 5: CONTRIBUTIONS AND DISTRIBUTIONS
• Ch. 24: LIMITED PARTNERSHIPS

Text

(a) If a general partner consents to a distribution made in violation of section 30-24-504, Idaho Code, and in consenting to the distribution fails to comply with section 30-24-409, Idaho Code, the general partner is personally liable to the limited partnership for the amount of the distribution which exceeds the amount that could have been distributed without the violation of section 30-24-504, Idaho Code.
(b) A person that receives a distribution knowing that the distribution violated section 30-24-504, Idaho Code, is personally liable to the limited partnership, but only to the extent that the distribution received by the person exceeded the amount that could have been properly paid under section 30-24-504, Idaho Code.
(c) A general partner against which an action is commenced because the general partner is liable under subsection (a) of this section may:
(1) Implead any other person that is liable under subsection (a) of this section and seek to enforce a right of contribution from the person; and
(2) Implead any person that received a distribution in violation of subsection (b) of this section and 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 is barred unless commenced not later than two (2) years after the distribution.

Legislative History

[30-24-505, added 2015, ch. 243, sec. 37, p. 856.]