35-8-605. Liability upon wrongful distribution. (1) A member or manager who votes for or assents to a distribution in violation of the articles of organization, the operating agreement, or 35-8-604 is personally liable to the limited liability company, but not to other persons, for the amount of the distribution that exceeds what could have been distributed without violating 35-8-604 or the articles of organization or the operating agreement if it is established that the member or manager did not act in compliance with 35-8-604.
     (2) A member or manager held liable under subsection (1) for an unlawful distribution is entitled to contribution:
     (a) from each other member or manager who voted for or assented to the unlawful distribution; and
     (b) from each member for the amount the member received, knowing that the distribution was made in violation of 35-8-604 or the articles of organization or the operating agreement.

     History: En. Sec. 36, Ch. 120, L. 1993.