Effect of a member's dissociation.

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47-34A-603. Effect of a member's dissociation.

(a) A limited liability company does not dissolve and wind up its business as result of a member's dissociation.

(b) Upon a member's dissociation from a limited liability company:

(1)The member's right to participate in the management and conduct of the company's business terminates, except as otherwise provided in §47-34A-803, and the member ceases to be a member and is treated the same as a transferee of a member;

(2)The member's duty of loyalty under §47-34A-409(b)(3) terminates; and

(3)The member's duty of loyalty under §47-34A-409(b)(1) and (2) and duty of care under §47-34A-409(c) continue only with regard to matters arising and events occurring before the member's dissociation.

Source: SL 1998, ch 272, §603.


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