Rhode Island § 7-16-32 § 7-16-32. Liability upon wrongful distribution.

Rhode Island Statutes

§ 7-16-32 — § 7-16-32. Liability upon wrongful distribution.

Rhode Island·Title 7 Corporations, Associations and Partnerships·Ch. 7-16 The Rhode Island Limited Liability Company Act

§ 7-16-32. Liability upon wrongful distribution.
(a) A member or manager who votes for or assents to a distribution in violation of the
            operating agreement or of § 7-16-31 is personally liable to the limited liability company for the amount of the distribution
            that exceeds what could have been distributed without violating the operating agreement
            or § 7-16-31.
         
(b) Each member or manager held liable under subsection (a) for an unlawful distribution
            is entitled to contribution:
         
(1) From each other member or manager who could be held liable under subsection (a) for
        

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§ 7-16-32. Liability upon wrongful distribution.

(a) A member or manager who votes for or assents to a distribution in violation of the operating agreement or of § 7-16-31 is personally liable to the limited liability company for the amount of the distribution that exceeds what could have been distributed without violating the operating agreement or § 7-16-31.

(b) Each member or manager held liable under subsection (a) for an unlawful distribution is entitled to contribution:

(1) From each other member or manager who could be held liable under subsection (a) for the unlawful distribution; and

(2) From each member for the amount the member received knowing that the distribution was made in violation of the operating agreement or § 7-16-31.

(c) A proceeding under this section is barred unless it is commenced within two (2) years after the date on which the effect of the distribution is measured under § 7-16-31.

Rhode Island § 7-16-32 (§ 7-16-32. Liability upon wrongful distribution.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.