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§ 1008 Liability for improper distributions; limitation of action

11 V.S.A. § 1008 (N/A)
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§ 1008. Liability for improper distributions; limitation of action

(a) A director who consents to a distribution that violates section 1007 of this title is personally liable to the mutual benefit enterprise for the amount of the distribution that 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 sections 818-819c of this title.

(b) A member or transferee of financial rights that received a distribution knowing that the distribution was made in violation of section 1007 of this title is personally liable to the mutual benefit enterprise to the extent the distribution exceeded the amount that should have been properly paid.

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

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

(2) implead in the action any 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 is barred if it is commenced later than two years after the distribution. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)

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