§ 57C-4-07. Liability upon wrongful distribution. - North Carolina Statutes

§ 57C‑4‑07. Liability upon wrongful distribution.

(a)        A manager ordirector who votes for or assents to a distribution in violation of G.S. 57C‑4‑06or a written operating agreement is personally liable to the limited liabilitycompany for the amount of the distribution that exceeds what could have beendistributed without violating G.S. 57C‑4‑06 or the operatingagreement if it is established that the manager or director did not act incompliance with G.S. 57C‑3‑22.

(b)        Each manager ordirector held liable under subsection (a) of this section for a wrongfuldistribution is entitled to:

(1)        Contribution fromeach other manager or director who could be held liable under subsection (a) ofthis section for the wrongful distribution; and

(2)        Reimbursement from eachmember for the amount the member received knowing that the distribution wasmade in violation of G.S. 57C‑4‑06 or the operating agreement.

(c)        A proceeding underthis section is barred unless it is commenced within three years after the dateon which the effect of the distribution is measured under G.S. 57C‑4‑06(c).(1993, c. 354,s. 1; 2001‑387, s. 72.)