| [Repealed Effective 1/1/2022] Liability for Excess Distribution, Limitation.

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Effective: July 1, 1994

Latest Legislation: Senate Bill 74 - 120th General Assembly

A member who knowingly receives any distribution or payment made contrary to the articles of organization or the operating agreement of a limited liability company is liable to the company for the amount received by him that is in excess of the amount that could have been paid or distributed without a violation of the articles or the operating agreement. No action shall be brought by or on behalf of the company upon a cause of action arising under this section at any time after two years from the day on which the violation of the articles or operating agreement occurs.

Last updated April 22, 2021 at 5:45 PM


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