(a) A member or manager who votes for or expressly consents to a distribution that is made in violation of Code Section 14-11-407 is personally liable to the limited liability company for the amount of the distribution that exceeds what could have been distributed without violating Code Section 14-11-407, if it is established that such member or manager did not act in compliance with Code Section 14-11-407 and violated a duty owed under Code Section 14-11-305 (without regard to any limitation on such duty permitted by paragraph (4) of Code Section 14-11-305).
(b) Each member or manager held liable under subsection (a) of this Code section for an unlawful distribution is entitled to contribution:
(1) From each other member or manager who could be held liable under subsection (a) of this Code section for the unlawful distribution; and
(2) From each member for the amount the member received knowing that the distribution was made in violation of Code Section 14-11-407.
(c) A proceeding under this Code section is barred unless it is commenced within two years after the date on which the effect of the distribution is measured under Code Section 14-11-407.
Section: Previous 14-11-401 14-11-402 14-11-403 14-11-404 14-11-405 14-11-406 14-11-407 14-11-408 14-11-409 NextLast modified: October 14, 2016