§ 29-1010.08. Liability for improper distributions; limitation of action.

Current through October 23, 2012

(a) A director who consents to a distribution that violates § 29-1010.07 shall be personally liable to the limited cooperative association for the amount of the distribution which exceeds the amount that could have been distributed without the violation if it is established that, in consenting to the distribution, the director failed to comply with § 29-1008.18 or § 29-1008.19.

(b) A member or transferee of financial rights which received a distribution knowing that the distribution was made in violation of § 29-1010.07 shall be personally liable to the limited cooperative association to the extent the distribution exceeded the amount that could have been properly paid.

(1) Other director who is liable under subsection (a) of this section and implead in the action any compel contribution from the person; and

(2) Person that is liable under subsection (b) of this section and compel contribution from the person in the amount the person received as described in subsection (b) of this section.

(d) An action under this section shall be barred if it is commenced later than 2 years after the distribution.

                
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(July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720.)

HISTORICAL AND STATUTORY NOTES

Legislative History of Laws

For history of Law 18-378, see notes under § 29-101.01.

Uniform Law

This section is based on § 1008 of the Uniform Limited Cooperative Association Act . See Vol. 6A , Uniform Laws Annotated, Master Edition or ULA Database on Westlaw.