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District of Columbia Code Division V. Local Business Affairs § 29-1010.08. Liability for improper distributions; limitation of action.

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) Except as otherwise provided in subsection (b) of this section, if a director of a limited cooperative association consents to a distribution made in violation of § 29-1010.07 and in consenting to the distribution fails to comply with § 29-1008.18, the director is personally liable to the association for the amount of the distribution that exceeds the amount which could have been distributed without violating § 29-1010.07.

(b) A person that receives 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.

(c) A director against whom an action is commenced under subsection (a) of this section may implead in the action any:

(1) Other person who is liable under subsection (a) of this section and seek to enforce a right of contribution from the person; and

(2) Person that receives a distribution in violation of subsection (b) of this section and may seek to enforce a right of contribution from the person in the amount the person received in violation [of] 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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Cite this article: FindLaw.com - District of Columbia Code Division V. Local Business Affairs § 29-1010.08. Liability for improper distributions; limitation of action. - last updated January 01, 2024 | https://codes.findlaw.com/dc/division-v-local-business-affairs/dc-code-sect-29-1010-08/

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