Liability for Distributions Clause Samples
The 'Liability for Distributions' clause defines the responsibilities and potential liabilities of parties, typically company directors or managers, when authorizing or making distributions such as dividends to shareholders or members. It usually outlines the conditions under which distributions can be made, such as ensuring the company remains solvent after the payment, and may specify that those who approve unlawful distributions can be held personally liable to repay the company. This clause serves to protect the financial integrity of the company and its creditors by ensuring that distributions are only made when legally and financially appropriate.
Liability for Distributions. A Member who receives an erroneous distribution for the Company shall have no liability under the Act or any other applicable law for the amount of the erroneous distribution after the expiration of six (6) years from the date of the erroneous distribution unless an action to recover the distribution from such member is commenced prior to the expiration of such six- (6-) year period and an adjudication of liability against such Member is made in such action.
Liability for Distributions. All distributions made pursuant to this Article VIII shall be made only to the Persons who, according to the books and records of the Company, hold the Membership Interests in respect of which such distributions are made on the actual date of distribution. Neither the Company nor any Director shall incur any liability for making distributions in accordance with this Article VIII.
Liability for Distributions. 24 5.12 Distributions in Kind.......................................................................24 ARTICLE 6 MANAGEMENT..................................................................................24
Liability for Distributions. A Member who receives a distribution for CX shall have no liability under the Act or any other applicable law for the amount of the distribution after the expiration of six (6) years from the date of the distribution unless an action to recover the distribution from such member is commenced prior to the expiration of such six- (6-) year period and an adjudication of liability against such Member is made in such action.