Revised Code of Washington
Chapter 25.15 - Limited Liability Companies.
25.15.236 - Liability for improper distributions.

RCW 25.15.236
Liability for improper distributions.

(1) Except as otherwise provided in subsection (2) of this section, a member of a member-managed limited liability company or manager of a manager-managed limited liability company that consents to a distribution made in violation of RCW 25.15.231 is personally liable to the limited liability company for the amount of the distribution that exceeds the amount that could have been distributed without the violation of RCW 25.15.231 if it is established that in consenting to the distribution the members or managers failed to comply with the duty of care.
(2) To the extent the limited liability company agreement of a member-managed limited liability company expressly relieves a member of the authority and responsibility to consent to distributions and imposes that authority and responsibility on one or more other members, the liability provided in subsection (1) of this section applies to the other members and not the member that the limited liability company agreement relieves of authority and responsibility.
(3) A member or transferee that received a distribution knowing that the distribution to that member or transferee was made in violation of RCW 25.15.231 is personally liable to the limited liability company but only to the extent that the distribution received by the member or transferee exceeded the amount that could have been properly paid under RCW 25.15.231.
(4) A member or manager against which an action is commenced under subsection (1) of this section may:
(a) Implead in the action any other person that is liable under subsection (1) of this section and compel contribution from the person; and
(b) Implead in the action any person that received a distribution in violation of subsection (3) of this section and compel contribution from the person in the amount the person received in violation of subsection (3) of this section.
(5) An action under this section is barred if it is not commenced within two years after the distribution.

[ 2015 c 188 § 47.]

Structure Revised Code of Washington

Revised Code of Washington

Title 25 - Partnerships

Chapter 25.15 - Limited Liability Companies.

25.15.006 - Definitions.

25.15.011 - Name of limited liability company.

25.15.016 - Reserved name.

25.15.018 - Effect of limited liability company agreement—Nonwaivable provisions.

25.15.021 - Registered agent.

25.15.026 - Service of process, notice, or demand.

25.15.031 - Purpose and powers.

25.15.033 - Law of this state governs.

25.15.036 - Business transactions of member or manager with the limited liability company.

25.15.038 - General standards—Limitation of liability.

25.15.041 - Indemnification.

25.15.046 - Professional limited liability companies.

25.15.048 - Professional limited liability company—Licensing.

25.15.051 - Foreign professional limited liability company.

25.15.054 - Membership residency.

25.15.061 - Piercing the veil.

25.15.071 - Formation—Certificate of formation.

25.15.076 - Amendment to certificate of formation.

25.15.081 - Restated certificate.

25.15.086 - Execution.

25.15.091 - Execution or amendment by judicial order.

25.15.096 - Duty of secretary of state to file—Review of refusal to file.

25.15.106 - Initial and annual reports.

25.15.116 - Admission of members.

25.15.121 - Voting and classes of membership.

25.15.126 - Liability of members and managers to third parties.

25.15.131 - Member dissociation.

25.15.136 - Records and information.

25.15.141 - Remedies for breach of limited liability company agreement by member.

25.15.151 - Member-managed limited liability companies.

25.15.154 - Manager-managed limited liability companies.

25.15.157 - Delegation of rights and powers to manage.

25.15.161 - Manager—Member's rights and duties.

25.15.166 - Voting and classes of managers.

25.15.171 - Remedies for breach of limited liability company agreement by manager.

25.15.176 - Resignation of manager.

25.15.181 - Loss of sole remaining manager.

25.15.191 - Form of contribution.

25.15.196 - Liability for contribution.

25.15.206 - Allocation of distributions.

25.15.211 - Interim distributions.

25.15.216 - Distribution following dissociation.

25.15.221 - Distribution in-kind.

25.15.226 - Right to distribution.

25.15.231 - Limitations on distribution.

25.15.236 - Liability for improper distributions.

25.15.246 - Nature of limited liability company interest—Certificate of interest.

25.15.251 - Transfer of transferable interest.

25.15.256 - Rights of judgment creditor.

25.15.265 - Dissolution.

25.15.269 - After dissolution under RCW 25.15.265.

25.15.274 - Judicial dissolution.

25.15.279 - Administrative dissolution—Commencement of proceeding.

25.15.289 - Administrative dissolution—Reinstatement.

25.15.294 - Voluntary dissolution—Revocation of dissolution—When effective—Effect.

25.15.297 - Winding up.

25.15.301 - Disposition of known claims—Definition.

25.15.305 - Distribution of assets.

25.15.309 - Remedies available after distribution.

25.15.316 - Law governing.

25.15.321 - Registration required.

25.15.331 - Name—Registered agent.

25.15.336 - Amendments to application.

25.15.341 - Withdrawal of registration.

25.15.346 - Doing business without registration.

25.15.351 - Enjoinder from doing business in this state.

25.15.356 - Activities not constituting transacting business.

25.15.361 - Service of process on registered foreign limited liability companies.

25.15.367 - Service of process on unregistered foreign limited liability companies.

25.15.371 - Termination of registration.

25.15.386 - Right to bring action.

25.15.391 - Proper plaintiff.

25.15.396 - Complaint.

25.15.401 - Expenses.

25.15.411 - Definitions.

25.15.416 - Merger—Plan.

25.15.421 - Merger—Plan—Approval.

25.15.426 - Articles of merger—Filing—Effective date.

25.15.431 - Effect of merger.

25.15.436 - Conversion.

25.15.441 - Action on plan of conversion by converting limited liability company.

25.15.446 - Filing required for conversion—Effective date.

25.15.451 - Effect of conversion.

25.15.456 - Restrictions on approval of conversions.

25.15.466 - Definitions.

25.15.471 - Member—Dissent—Payment of fair value.

25.15.476 - Dissenters' rights—Notice—Timing.

25.15.481 - Member—Dissent—Voting restriction.

25.15.486 - Members—Dissenters' notice—Requirement.

25.15.491 - Member—Payment demand—Entitlement.

25.15.496 - Members' interests—Transfer restriction.

25.15.501 - Payment of fair value—Requirements for compliance.

25.15.506 - Merger—Not effective within sixty days—Transfer restrictions.

25.15.511 - Dissenter's estimate of fair value—Notice.

25.15.516 - Unsettled demand for payment—Proceeding—Parties—Appraisers.

25.15.521 - Unsettled demand for payment—Costs—Fees and expenses of counsel.

25.15.801 - Construction and application of chapter and limited liability company agreement.

25.15.806 - Applicable fees, charges, and penalties.

25.15.811 - Authority to adopt rules.

25.15.903 - Effective date—2015 c 188.

25.15.904 - Short title.

25.15.905 - Chapter application.