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Georgia State Code
Title      14
Chapter      11  
Section Navigation   100 ... 207       208 ... 305   
   306 ... 401         402 ... 502   
   503 ... 605       606 ... 704   
   705 ... 802       803 ... 905   
  1001 ... 1010     1011 ... 1107  
  1108 ... 1109    
Section<<< 402 403 404 405 406 407 408 409 501 502 >>>  
Title 14, Chapter 11, Section 408 (14-11-408)

(a) A member or manager who votes for or expressly consents to a distribution that is made in violation of the articles of organization, a written operating agreement, or 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 the articles of organization, written operating agreement, or 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 the articles of organization, written operating agreement, or 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.

Sunday September 7 22:26 CDT


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