Alaska § 10.50.320 - Liability of members receiving prohibited distributions; suit against members.
Full text of Alaska Alaska Statutes § 10.50.320 — Liability of members receiving prohibited distributions; suit against members., with citation guidance and answers to common questions.
§ 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 nonconsenting members.
(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.
Source: official Alaska text · Last verified 2026-08-27
Frequently Asked Questions About Alaska § 10.50.320
What does Alaska Statutes § 10.50.320 cover?
Section 10.50.320 ("Liability of members receiving prohibited distributions; suit against members.") is part of the Alaska Statutes, the codified statutory law of Alaska. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alaska § 10.50.320?
A common citation format is "Alaska Statutes § 10.50.320" (Alaska). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alaska law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alaska official source linked on this page or consult a licensed Alaska attorney.
How does Alaska § 10.50.320 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alaska can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alaska.