Rhode Island § 7-16-32 - The Rhode Island Limited Liability Company Act
Full text of Rhode Island Rhode Island General Laws § 7-16-32 — The Rhode Island Limited Liability Company Act, with citation guidance and answers to common questions.
§ 7-16-32. The Rhode Island Limited Liability Company Act
R.I. Gen. Laws § 7-16-32
§ 7-16-32. Liability upon wrongful distribution.
(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.
(b) Each member or manager held liable under subsection (a) for an unlawful distribution is entitled to contribution:
(1) From each other member or manager who could be held liable under subsection (a) for the unlawful distribution; and
(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.
(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.
History of Section.
P.L. 1992, ch. 280, § 1.
Source: official Rhode Island text · Last verified 2026-08-27
Frequently Asked Questions About Rhode Island § 7-16-32
What does Rhode Island General Laws § 7-16-32 cover?
Section 7-16-32 ("The Rhode Island Limited Liability Company Act") is part of the Rhode Island General Laws, the codified statutory law of Rhode Island. 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 Rhode Island § 7-16-32?
A common citation format is "Rhode Island General Laws § 7-16-32" (Rhode Island). 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 Rhode Island law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Rhode Island official source linked on this page or consult a licensed Rhode Island attorney.
How does Rhode Island § 7-16-32 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Rhode Island 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 Rhode Island.