16-16-1008 - Liability for improper distributions -- Limitation of action. - Utah Statutes

16-16-1008. Liability for improper distributions -- Limitation of action.
(1) A director who consents to a distribution that violates Section 16-16-1007 ispersonally liable to the limited cooperative association for the amount of the distribution whichexceeds the amount that could have been distributed without the violation if it is established thatin consenting to the distribution the director failed to comply with Section 16-16-818 or16-16-819.
(2) A member or transferee of financial rights which received a distribution knowing thatthe distribution was made in violation of Section 16-16-1007 is personally liable to the limitedcooperative association to the extent the distribution exceeded the amount that could have beenproperly paid.
(3) A director against whom an action is commenced under Subsection (1) may:
(a) implead in the action any other director who is liable under Subsection (1) andcompel contribution from the person; and
(b) implead in the action any person that is liable under Subsection (2) and compelcontribution from the person in the amount the person received as described in Subsection (2).
(4) An action under this section is barred if it is commenced later than two years after thedistribution.

Enacted by Chapter 363, 2008 General Session