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Tenn. Code Ann. § 48-56-205

Creditor's action against member

Applied in 1 court decision — leading case Foster Wheeler Energy Corp. v. Metropolitan Knox Solid Waste Authority, Inc. (1992)

Most recently applied in Foster Wheeler Energy Corp. v. Metropolitan Knox Solid Waste Authority, Inc. (July 1992)

Acts 1987, ch. 242, § 6.24.

(1) No proceeding may be brought by a creditor of a corporation to reach the liability, if any, of a member to the corporation unless final judgment has been rendered in favor of the creditor against the corporation and execution has been returned unsatisfied in whole or in part or unless such proceeding would be useless.

(2) All creditors of the corporation, with or without reducing their claims to judgment, may intervene in any creditor's proceeding brought under subsection (a) to reach and apply unpaid amounts due the corporation. Any or all members who owe amounts to the corporation may be joined in such proceeding.

(3) Nothing provided in subsection (a) or (b) is intended to preclude the availability of other remedies to a creditor.

Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.