New Jersey Revised Statutes § 42:2c-45 - Member's Power To Dissociate; Wrongful Dissociation.

42:2C-45 Member's power to dissociate; wrongful dissociation.

45.Member's Power to Dissociate; Wrongful Dissociation.

a.A person has the power to dissociate as a member at any time, rightfully or wrongfully, by withdrawing as a member by express will under section 46 of this act.

b.A person's dissociation from a limited liability company is wrongful only if the dissociation:

(1)is in breach of an express provision of the operating agreement; or

(2)occurs before the termination of the company and:

(a)the person is expelled as a member by judicial order under subsection e. of section 46 of this act;

(b)the person is dissociated under paragraph (1) of subsection g. of section 46 of this act, by becoming a debtor in bankruptcy; or

(c) in the case of a person that is not a trust other than a business trust, an estate, or an individual, the person is expelled or otherwise dissociated as a member because it willfully dissolved or terminated; or

(3)in the case of a company for a definite term or particular undertaking, by withdrawing as a member by express will under section 46 of this act before the expiration of the term or the completion of the undertaking.

c.A person that wrongfully dissociates as a member is liable to the limited liability company and, subject to section 67 of this act, to the other members for damages caused by the dissociation. The liability is in addition to any other debt, obligation, or other liability of the member to the company or the other members.

L.2012, c.50, s.45.

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Last modified: October 11, 2016