District of Columbia · Through 2026-08-20 (D.C. Law 26-175)

D.C. Code § 29-1010.08: Liability for improper distributions; limitation of action.

(a)
Except as otherwise provided in subsection (b) of this section, if a director of a limited cooperative association consents to a distribution made in violation of § 29-1010.07 and in consenting to the distribution fails to comply with § 29-1008.18, the director is personally liable to the association for the amount of the distribution that exceeds the amount which could have been distributed without violating § 29-1010.07.

(b)
A person that receives a distribution knowing that the distribution was made in violation of § 29-1010.07 shall be personally liable to the limited cooperative association to the extent the distribution exceeded the amount that could have been properly paid.

(c)
A director against whom an action is commenced under subsection (a) of this section may implead in the action any:
(1)
Other person who is liable under subsection (a) of this section and seek to enforce a right of contribution from the person; and
(2)
Person that receives a distribution in violation of subsection (b) of this section and may seek to enforce a right of contribution from the person in the amount the person received in violation [of] subsection (b) of this section.

(d)
An action under this section shall be barred if it is commenced later than 2 years after the distribution.

Where this section sits in the code

Title 29. Business Organizations. [Enacted title]
Chapter 10. Limited Cooperative Associations.
Subchapter X. Contributions, Allocations, and Distributions.

(a)

Except as otherwise provided in subsection (b) of this section, if a director of a limited cooperative association consents to a distribution made in violation of § 29-1010.07 and in consenting to the distribution fails to comply with § 29-1008.18, the director is personally liable to the association for the amount of the distribution that exceeds the amount which could have been distributed without violating § 29-1010.07.

(b)

A person that receives a distribution knowing that the distribution was made in violation of § 29-1010.07 shall be personally liable to the limited cooperative association to the extent the distribution exceeded the amount that could have been properly paid.

(c)

A director against whom an action is commenced under subsection (a) of this section may implead in the action any:

(1)

Other person who is liable under subsection (a) of this section and seek to enforce a right of contribution from the person; and

(2)

Person that receives a distribution in violation of subsection (b) of this section and may seek to enforce a right of contribution from the person in the amount the person received in violation [of] subsection (b) of this section.

(d)

An action under this section shall be barred if it is commenced later than 2 years after the distribution.

Collected 2026-08-29T05:44:07Z. Source file · JSON

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