275.230 Liability for unlawful distribution -- Effect of unlawful distribution --

170 words·~1 min read·/ky/275-230

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Limitation of action.

(1)A member or manager who votes for or assents to a distribution in violation of an

operating agreement or KRS 275.225 shall be personally liable to the limited

liability company for the amount of the distribution that exceeds the amount that

could have been distributed without violating KRS 275.225 or an operating

agreement if it is established that the member or manager did not comply with KRS

275.170.

(2)Each member or manager held liable under subsection

(1)of this section for an

unlawful distribution shall be entitled to contribution:

(a)From each other member or manager who could be held liable under

subsection

(1)of this section for the unlawful distribution; and

(b)From each member, assignee, or other recipient for the amount received in

violation of KRS 275.225 or an operating agreement.

(3)A proceeding under this section shall be barred unless it is commenced within two

(2)years after the date on which the effect of the distribution is measured under

KRS 275.225(3).