490A.1510 - CONVERTIBLE MEMBERSHIP INTERESTS -- RIGHTS AND OPTIONS.
490A.1510 CONVERTIBLE MEMBERSHIP INTERESTS -- RIGHTS AND OPTIONS. A professional limited liability company shall not create or issue any interest convertible into a membership interest of the professional limited liability company. The provisions of this subchapter with respect to the issuance and transfer of membership interests apply to the creation, issuance, and transfer of any rights or options entitling the holder to purchase from a professional limited liability company any membership interests of the professional limited liability company. Rights or options shall not be transferable, whether voluntarily, involuntarily, by operation of law, or in any other manner. Upon the death of the holder, or when the holder ceases to be licensed to practice a profession in this state which the professional limited liability company is authorized to practice, the rights or options shall expire.
Section History: Recent Form 92 Acts, ch 1151, § 94