{"data":{"id":"us-ri/r.i.-gen.-laws-7-16-32","jurisdiction":"us-ri","citation":"R.I. Gen. Laws § 7-16-32","heading":"Liability upon wrongful distribution.","body":"(a) A member or manager who votes for or assents to a distribution in violation of the operating agreement or of § 7-16-31 is personally liable to the limited liability company for the amount of the distribution that exceeds what could have been distributed without violating the operating agreement or § 7-16-31.\n(b) Each member or manager held liable under subsection (a) for an unlawful distribution is entitled to contribution:\n(1) From each other member or manager who could be held liable under subsection (a) for the unlawful distribution; and\n(2) From each member for the amount the member received knowing that the distribution was made in violation of the operating agreement or § 7-16-31.\n(c) A proceeding under this section is barred unless it is commenced within two (2) years after the date on which the effect of the distribution is measured under § 7-16-31.","path":["Title 7 Corporations, Associations, and Partnerships","Chapter 16 The Rhode Island Limited Liability Company Act"],"source_url":"https://webserver.rilegislature.gov/Statutes/TITLE7/7-16/7-16-32.htm","current_through":"site files published 2025-08-13","vintage":"","retrieved_at":"2026-09-05T19:54:51Z","sha256":"77711437141f9893750175e11a39c17c4e8fae8e48708ca007c8cb52825cc768","source_id":"us-ri","stale":true,"prev":"us-ri/r.i.-gen.-laws-7-16-31","next":"us-ri/r.i.-gen.-laws-7-16-33"},"notice":"GroundRules: Original legal text. Not legal advice."}