Corporations Code - CORP - CORP § 15905.09

Summary

(a) A general partner that consents to a distribution made in violation of Section 15905.08 is personally liable to the limited partnership for the amount of the distribution which exceeds the amount that could have been distributed without the violation if it is established that

Text

(a)
A general partner that consents to a distribution made in violation of Section 15905.08 is personally liable to the limited partnership for the amount of the distribution which exceeds the amount that could have been distributed without the violation if it is established that in consenting to the distribution the general partner failed to comply with Section 15904.08.
(b)
A partner or transferee that received a distribution knowing that the distribution to that partner or transferee was made in violation of Section 15905.08 is personally liable to the limited partnership but only to the extent that the distribution received by the partner or transferee exceeded the amount that could have been properly paid under Section 15905.08.
(c)
A general partner against which an action is commenced under subdivision (a) may:
(1)
implead in the action any other person that is liable under subdivision (a) and compel contribution from the person; and
(2)
implead in the action any person that received a distribution in violation of subdivision (b) and compel contribution from the person in the amount the person received in violation of subdivision (b).
(d)
An action under this section is barred if it is not commenced within four years after the distribution.

Retrieval chunks

• #1 | Corporations Code - CORP - CORP § 15905.09

  (a) A general partner that consents to a distribution made in violation of Section 15905.08 is personally liable to the limited partnership for the amount of the distribution which exceeds the amount that could have been distributed without the violation if it is established that in consenting to the distribution the…