Transfers of Interest and Dissociation Flashcards
What is the effect of an assignment of a member’s interest in an LLC?
An assignment of a member’s interest in an LLC transfers ONLY the member’s right to receive distributions.
Management rights are NOT transferred
How may one become a member of an LLC?
One may become a member of an LLC ONLY:
- with consent of ALL members; OR
- as provided in operating agreement
..in this case management rights are transferred
What is the rule re: attachment of a membership interest?
A judgment creditor of a member or transferee of a member may charge (attach) the transferable interest of the judgment debtor to satisfy the judgment
What is a person’s power to dissociate as a member of an LLC?
A person has the power to dissociate as a member of the LLC at any time, although a wrongfully dissociating member may be liable to the LLC for damages.
What events will cause the dissociation of a member of an LLC?
The same events that will cause dissociation of a partner in a general or limited partnership
(come back to find out)
