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The Vermont Statutes Online
Title
11
:
Corporations, Partnerships and Associations
Chapter
025
:
LIMITED LIABILITY COMPANIES
Subchapter
004
:
RELATIONS OF MEMBERS TO EACH OTHER AND TO LIMITED LIABILITY COMPANY
§
4057. Liability for unlawful distributions
(a) A member of
a member-managed limited liability company or a member or manager of a
manager-managed company who votes for or assents to a distribution made in
violation of section 4056 of this title, the articles of organization, or a
written operating agreement is personally liable to the company for the amount
of the distribution which exceeds the amount that could have been distributed
without violating section 4056 of this title, the articles of organization, or
a written operating agreement if it is established that the member or manager
did not perform the member's or manager's duties in compliance with section
4059 of this title.
(b) A member of
a manager-managed limited liability company who knew a distribution was made to
such member in violation of section 4056 of this title is personally liable to
the limited liability company, but only to the extent that the distribution
received by such member exceeded the amount that could properly have been paid
under section 4056 of this title.
(c) A member or
manager against whom an action is brought under this section may implead in the
action all:
(1) other
members or managers who voted for or assented to the distribution in violation
of subsection (a) of this section and may compel contribution from them; and
(2) members who
received a distribution in violation of subsection (b) of this section and may
compel contribution from the member in the amount received in violation of
subsection (b) of this section.
(d) A proceeding
under this section is barred unless it is commenced within two years after the
distribution. (Added 2015, No. 17, § 2.)