Tennessee § 48-237-101 - Liability upon wrongful distribution.
Full text of Tennessee Tennessee Code Annotated § 48-237-101 — Liability upon wrongful distribution., with citation guidance and answers to common questions.
§ 48-237-101. Liability upon wrongful distribution.
Personal Liability. Unless such person complies with the applicable standards of conduct set forth in § 48-240-103 and § 48-241-111, a member or governor who votes for or assents to a distribution made in violation of § 48-236-105 or the articles or operating agreement is personally liable to the LLC for the amount of the distribution that exceeds what could have been distributed without violating § 48-236-105 or the articles or operating agreement. Right of Contribution. A governor or member held liable for an unlawful distribution under subsection (a) is entitled to contribution: From every other governor and member who voted for or assented to the distribution; and From each member for the amount the member accepted, knowing the distribution was made in violation of § 48-236-105 or the articles or operating agreement. Section Not a Limitation on Liability. Subject to subsection (d), this section shall not affect any obligation or liability of a governor or member under the articles or operating agreement or other applicable law for the amount of a distribution. Member's Liability. Unless otherwise agreed, a member who receives a distribution from an LLC or a manager or governor who votes for or assents to such distribution shall have no liability under this section or other applicable law for the amount of the distribution after the expiration of three (3) years from the date of the distribution. Acts 1994, ch. 868, § 1. Law Reviews. Punitive Damages and Business Organizations: A Pathetic Fallacy, 67 Tenn. L. Rev. 971 (2000).
Frequently Asked Questions About Tennessee § 48-237-101
What does Tennessee Code Annotated § 48-237-101 cover?
Section 48-237-101 ("Liability upon wrongful distribution.") is part of the Tennessee Code Annotated, the codified statutory law of Tennessee. 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 Tennessee § 48-237-101?
A common citation format is "Tennessee Code Annotated § 48-237-101" (Tennessee). 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 Tennessee law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Tennessee official source linked on this page or consult a licensed Tennessee attorney.
How does Tennessee § 48-237-101 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Tennessee 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 Tennessee.