605.0406 Liability for improper distributions.
286 words·~1 min read·
/fl/title-xxxvi/chapter-605/605-0406·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Except as otherwise provided in subsection (2), if a member of a member-managed limited liability company or manager of a manager-managed limited liability company consents to a distribution made in violation of s. 605.0405 and, in consenting to the distribution, fails to comply with s. 605.04091 , the member or manager is personally liable to the company for the amount of the distribution which exceeds the amount that could have been distributed without the violation of s. 605.0405 .
(2)To the extent the operating agreement of a member-managed limited liability company expressly relieves a member of the authority and responsibility to consent to distributions and imposes that authority and responsibility on one or more other members, the liability in subsection
(1)applies to the other members and not the member that the operating agreement relieves of authority and responsibility.
(3)A person who receives a distribution knowing that the distribution violated s. 605.0405 is personally liable to the limited liability company, but only to the extent that the distribution received by the person exceeded the amount that could have been properly paid under s. 605.0405 .
(4)A person against whom an action is commenced because that person is or may be liable under subsection
(1)may:
(a)Implead another person who is or may be liable under subsection
(1)and seek to enforce a right of contribution from the person; or
(b)Implead a person who received a distribution in violation of subsection
(3)and seek to enforce a right of contribution from an impleaded person in the amount the person received in violation of subsection (3).
(5)An action under this section is barred unless commenced within 2 years after the distribution.