178.0407 Liability for improper distributions by limited liability partnership.
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/wi/chapter-178/178-0407A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
178.0407 Liability for improper distributions by limited liability partnership.
(1)Except as otherwise provided in sub.
(2), if a partner of a limited liability partnership consents to a distribution made in violation of s. 178.0406 and in consenting to the distribution fails to comply with s. 178.0409 , the partner is personally liable to the partnership for the amount of the distribution which exceeds the amount that could have been distributed without the violation of s. 178.0406 .
(2)To the extent the partnership agreement of a limited liability partnership expressly relieves a partner of the authority and responsibility to consent to distributions and imposes that authority and responsibility on one or more other partners, the liability stated in sub.
(1)applies to the other partners and not to the partner that the partnership agreement relieves of the authority and responsibility.
(3)A person that receives a distribution knowing that the distribution violated s. 178.0406 is personally liable to the limited liability partnership but only to the extent that the distribution received by the person exceeded the amount that could have been properly paid under s. 178.0406 .