Illinois Compiled Statutes 805 ILCS 180 Limited Liability Company Act. Section 30-10

    (805 ILCS 180/30-10)

    Sec. 30-10. Rights of a transferee.

    (a) A transferee of a distributional interest may become a member of a limited liability company if and to the extent that the transferor gives the transferee the right in accordance with authority described in the operating agreement or all other members consent.

    (b) A transferee who has become a member, to the extent transferred, has the rights and powers, and is subject to the restrictions and liabilities, of a member under the operating agreement of a limited liability company and this Act. A transferee who becomes a member also is liable for the transferor member's obligations to make contributions under Section 20-5 and for obligations under Section 25-35 to return unlawful distributions, but the transferee is not obligated for the transferor member's liabilities unknown to the transferee at the time the transferee becomes a member.

    (c) Whether or not a transferee of a distributional interest becomes a member under subsection (a) of this Section, the transferor is not released from liability to the limited liability company under the operating agreement or this Act.

    (d) A transferee who does not become a member is not entitled to participate in the management or conduct of the limited liability company's business, require access to information concerning the company's transactions, or inspect or copy any of the company's records.

    (e) A transferee who does not become a member is entitled to:

        (1) receive, in accordance with the transfer,

    distributions to which the transferor would otherwise be entitled;

        (2) receive, upon dissolution and winding up of the

    limited liability company's business:

            (A) in accordance with the transfer, the net

        amount otherwise distributable to the transferor; and

            (B) a statement of account only from the date of

        the latest statement of account agreed to by all the members; and

        (3) seek under subdivision (5) of Section 35-1 a

    judicial determination that it is equitable to dissolve and wind up the company's business.

    (f) A limited liability company need not give effect to a transfer until it has notice of the transfer.

(Source: P.A. 97-813, eff. 7-13-12.)

Sections:  Previous  30-1  30-5  30-10  30-15  30-20  Next

Last modified: February 18, 2015