Kentucky Statutes 272A.10-080 – Liability for improper distributions
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(1) A director who consents to a distribution that violates KRS § 272A.10-070 is personally liable to the limited cooperative association for the amount of the distribution which exceeds the amount that could have been distributed without the violation if it is established that in consenting to the distribution the director failed to comply with KRS § 272A.8-180.
(2) A member or transferee of financial rights which received a distribution knowing that the distribution was made in violation of KRS § 272A.10-070 is personally liable to the limited cooperative association to the extent the distribution exceeded the amount that could have been properly paid.
(3) A director against whom an action is commenced under subsection (1) of this section may:
(a) Implement in the action any other director who is liable under subsection (1)
of this section and compel contribution from the person; and
(b) Implement in the action any person that is liable under subsection (2) of this section and compel contribution from the person in the amount the person received as described in subsection (2) of this section.
(4) An action under this section is barred if it is commenced later than two (2) years after the distribution.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 160, sec. 84, effective July 12, 2012.
(2) A member or transferee of financial rights which received a distribution knowing that the distribution was made in violation of KRS § 272A.10-070 is personally liable to the limited cooperative association to the extent the distribution exceeded the amount that could have been properly paid.
Terms Used In Kentucky Statutes 272A.10-080
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Cooperative: means a limited cooperative association or an entity organized under any cooperative law of any jurisdiction. See Kentucky Statutes 272A.1-020
- Director: means a director of a limited cooperative association. See Kentucky Statutes 272A.1-020
- Financial rights: means the right to participate in allocations and distributions as provided in Subchapters 10 and 12 of this chapter, but does not include rights or obligations under a marketing contract governed by Subchapter 7 of this chapter. See Kentucky Statutes 272A.1-020
- Member: means a person that is admitted as a patron member or investor member, or both, in a limited cooperative association. See Kentucky Statutes 272A.1-020
(3) A director against whom an action is commenced under subsection (1) of this section may:
(a) Implement in the action any other director who is liable under subsection (1)
of this section and compel contribution from the person; and
(b) Implement in the action any person that is liable under subsection (2) of this section and compel contribution from the person in the amount the person received as described in subsection (2) of this section.
(4) An action under this section is barred if it is commenced later than two (2) years after the distribution.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 160, sec. 84, effective July 12, 2012.