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§ 8232. Liability for improper distributions by limited liability partnership

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 15 Pa.C.S.A. Corporations and Unincorporated AssociationsEffective: February 21, 2017

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 15 Pa.C.S.A. Corporations and Unincorporated Associations (Refs & Annos)
Part III. Partnerships and Limited Liability Companies (Refs & Annos)
Chapter 82. Limited Liability Partnerships and Limited Liability Limited Partnerships (Refs & Annos)
Subchapter D. Distributions
Effective: February 21, 2017
15 Pa.C.S.A. § 8232
§ 8232. Liability for improper distributions by limited liability partnership
Currentness
(a) General rule.--If a partner of a limited liability partnership consents to a distribution made in violation of section 8231 (relating to limitations on distributions by limited liability partnership) and in consenting to the distribution fails to comply with section 8447 (relating to standards of conduct for partners), the partner is personally liable to the partnership for the amount of the distribution which exceeds the amount that could have been distributed without the violation of section 8231.
(b) Recipients.--A person that receives a distribution knowing that the distribution violated section 8231 is personally liable to the limited liability partnership, but only to the extent that the distribution received by the person exceeded the amount that could have been properly paid under section 8231.
(c) Contribution.--A person against which an action is commenced because the person is liable under subsection (a) may:
(1) join any other person that is liable under subsection (a) and seek to enforce a right of contribution from the person; and
(2) join any person that received a distribution in violation of subsection (b) and seek to enforce a right of contribution from the person in the amount the person received in violation of subsection (b).
(d) Statute of repose.--An action under this section is barred unless commenced within two years after the distribution.

Credits

2016, Nov. 21, P.L. 1328, No. 170, § 23, effective in 90 days [Feb. 21, 2017].
15 Pa.C.S.A. § 8232, PA ST 15 Pa.C.S.A. § 8232
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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