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Flashcards in Transfers of Interest and Dissociation Deck (5)
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1

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

2

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

3

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

4

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.

5

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)