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- Alaska Statutes.
- Title 10. Corporations and Associations
- Chapter 50. Alaska Revised Limited Liability Company Act
- Section 320. Liability of Members Receiving Prohibited Distributions; Suit Against Members.
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AS 10.50.320. Liability of Members Receiving Prohibited Distributions; Suit Against Members.
- (a) A member of a limited liability company who receives a distribution prohibited by this chapter with knowledge of facts
indicating the impropriety of the distribution is liable to the company for the benefit of all of the creditors or
members entitled to institute an action under (b) of this section for the amount received by the member with interest
at the legal rate on judgments until paid. The liability of the member under this subsection may not exceed the
liabilities of the company owed to nonconsenting creditors at the time of the violation and the injury suffered by
- (b) Suit may be brought in the name of the company to enforce the liability to
- (1) creditors arising under (a) of this section for a violation of AS 10.50.305 against any or all members liable by any one or
more creditors of the company whose debts or claims arose before the time of the distribution to members and who have
not consented to the distribution, whether or not they have reduced their claims to judgment; or
- (2) members arising under (a) of this section for a violation of AS 10.50.305 against any or all members liable by any one or
more members holding preferred limited liability company interests outstanding at the time of the distribution who have
not consented to the distribution, without regard to the provisions of AS 10.50.735
- (c) A member sued under this section may compel contribution from all other members liable under this section.
- (d) This section does not affect the liability that a member may have under other applicable law.
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