31 §695. Rights of former member (WHOLE SECTION TEXT EFFECTIVE UNTIL 7/1/11)
Title 31: PARTNERSHIPS AND ASSOCIATIONS
Chapter 13: LIMITED LIABILITY COMPANIES
Subchapter 8: ADMISSION AND WITHDRAWAL OF MEMBERS
§695. Rights of former member
(CONTAINS TEXT WITH VARYING EFFECTIVE DATES)
(WHOLE SECTION TEXT EFFECTIVE UNTIL 7/1/11)
1. No payment for interest. Unless the operating agreement or articles of organization provide otherwise, if the limited liability company is not dissolved after a person ceases to be a member under section 692, the person has no right to any payment from the limited liability company for that person's interest in the limited liability company.
[ 1999, c. 638, §27 (NEW) .]
2. Payment for interest. Unless the operating agreement or articles of organization provide otherwise, if the limited liability company is not dissolved after a person ceases to be a member under section 692, and if the limited liability company elects to pay to that person or that person's successor in interest for that person's interest in the limited liability company in complete liquidation of the interest.
A. The price must be the fair value of that person's interest in the limited liability company as of the date the person ceased to be a member, based upon the person's right to share in distributions from the limited liability company. [1999, c. 638, §27 (NEW).]
B. The amount must be paid within a reasonable time after the person has ceased to be a member. [1999, c. 638, §27 (NEW).]
[ 1999, c. 638, §27 (NEW) .]
SECTION HISTORY
1999, c. 638, §27 (NEW). 2009, c. 629, Pt. A, §1 (RP). 2009, c. 629, Pt. A, §3 (AFF).