Liability for Distributions Clause Samples

The 'Liability for Distributions' clause defines the responsibilities and potential liabilities of parties, typically company directors or managers, when authorizing or making distributions such as dividends to shareholders or members. It usually outlines the conditions under which distributions can be made, such as ensuring the company remains solvent after the payment, and may specify that those who approve unlawful distributions can be held personally liable to repay the company. This clause serves to protect the financial integrity of the company and its creditors by ensuring that distributions are only made when legally and financially appropriate.
Liability for Distributions. A Member who receives an erroneous distribution for the Company shall have no liability under the Act or any other applicable law for the amount of the erroneous distribution after the expiration of six (6) years from the date of the erroneous distribution unless an action to recover the distribution from such member is commenced prior to the expiration of such six- (6-) year period and an adjudication of liability against such Member is made in such action.
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Liability for Distributions. All distributions made pursuant to this Article VIII shall be made only to the Persons who, according to the books and records of the Company, hold the Membership Interests in respect of which such distributions are made on the actual date of distribution. Neither the Company nor any Director shall incur any liability for making distributions in accordance with this Article VIII.
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Liability for Distributions. 24 5.12 Distributions in Kind.......................................................................24 ARTICLE 6 MANAGEMENT..................................................................................24
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Liability for Distributions. A Member who receives a distribution for CX shall have no liability under the Act or any other applicable law for the amount of the distribution after the expiration of six (6) years from the date of the distribution unless an action to recover the distribution from such member is commenced prior to the expiration of such six- (6-) year period and an adjudication of liability against such Member is made in such action.
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Related to Liability for Distributions

  • Profits and Losses Distributions Until the admission of additional Members, the Original Member shall be entitled to all allocations of LLC profits and losses and to allocations of distributions.

  • Allocation of Profits and Losses Distributions Profits/Losses. For financial accounting and tax purposes, the Company's net profits or net losses shall be determined on an annual basis and shall be allocated to the Members in proportion to each Member's relative capital interest in the Company as set forth in Schedule 2 as amended from time to time in accordance with U.S. Department of the Treasury Regulation 1.704-1.

  • Distributions and Allocations (i) Subject to Section 8.6(c), the Redeeming Partner shall have no right to receive any distributions that are paid after the Specified Redemption Date with respect to any Partnership Units redeemed pursuant to this Section 8.6. (ii) If any Partnership Interest is redeemed (other than pursuant to Section 8.6(c)) on any day other than the first day of a Fiscal Year, then Profit, Losses, each item thereof and all other items attributable to such Partnership Interest for such Fiscal Year shall be divided and allocated to the Redeeming Partner by taking into account the Redeeming Partner’s ownership of such Partnership Interest during the Fiscal Year in accordance with Section 706(d) of the Code, using the interim closing of the books method (unless the General Partner, in its sole and absolute discretion, elects to adopt a daily, weekly or monthly proration period, in which event Profits, Losses, each item thereof and all other items attributable to such redeemed Partnership Interest for such Fiscal Year shall be prorated based upon the applicable method selected by the General Partner).

  • Cash Available for Distribution Subject to the provisions of Sections 5.3, 5.4, 12.2(c) and 13.2, the General Partner shall cause the Partnership to distribute, at such times as the General Partner shall determine (each a “Distribution Date”), an amount of Cash Available for Distribution, determined by the General Partner in its sole discretion to the Partners holding GP Units, OP Units and/or Class B Units who are Partners on the applicable Partnership Record Date, in accordance with each such Partner’s respective Percentage Interest.