§ 13.1-1040.1. Events causing member's dissociation
Except as otherwise provided in the articles of organization or an operating agreement, a member is dissociated from a limited liability company upon the occurrence of any of the following events:
1. To the extent resignation of a member is provided for in writing in the articles of organization or an operating agreement, the limited liability company's having notice of the member's express will to resign as a member on a later date specified by the member in the notice or, if no later date is specified, the date of notice;
2. An event agreed to in the articles of organization or an operating agreement as causing the member's dissociation;
3. The member's expulsion pursuant to the articles of organization or an operating agreement;
4. The member's expulsion by the unanimous vote of the other members if:
a. It is unlawful to carry on the business of the limited liability company with that member; or
b. There has been an assignment or transfer of all or substantially all of that member's membership interest, other than a transfer for security purposes or a court order charging the member's interest which, in either case has not been foreclosed;
5. On application by the limited liability company or another member, the member's expulsion by judicial determination because:
a. The member engaged in wrongful conduct that adversely and materially affected the business of the limited liability company;
b. The member willfully or persistently committed a material breach of the articles of organization or an operating agreement; or
c. The member engaged in conduct relating to the business of the limited liability company which makes it not reasonably practicable to carry on the business with the member;
6. The member's:
a. Becoming a debtor in bankruptcy;
b. Executing an assignment for the benefit of creditors;
c. Seeking, consenting to, or acquiescing in the appointment of a trustee, receiver, or liquidator of that member or of all or substantially all of that member's property; or
d. Failing, within ninety days after the appointment, to have vacated or stayed the appointment of a trustee, receiver, or liquidator of the member or of all or substantially all of the member's property obtained without the member's consent or acquiescence, or failing within ninety days after the expiration of a stay to have the appointment vacated;
7. In the case of a member who is an individual:
a. The member's death;
b. The appointment of a guardian, committee or conservator for the member; or
c. A judicial determination that the member has otherwise become incapable of performing the member's duties under the articles of organization or an operating agreement;
8. In the case of a member that is a trust or is acting as a member by virtue of being a trustee of a trust, distribution of the trust's entire transferable interest in the limited liability company, but not merely by reason of the substitution of a successor trustee;
9. In the case of a member that is an estate or is acting as a member by virtue of being a personal representative of an estate, distribution of the estate's entire transferable interest in the limited liability company, but not merely by reason of the substitution of a successor personal representative;
10. Termination of a member who is not an individual, partnership, corporation, limited liability company, trust, or estate;
11. The expiration of ninety days after the limited liability company notifies a corporate member that it will be expelled because it has filed articles of dissolution or the equivalent, its existence has been terminated or its charter has been revoked, or its right to conduct business has been suspended by the jurisdiction of its incorporation, if there is no revocation of the certificate of dissolution or no reinstatement of its existence, its charter or its right to conduct business; or
12. A partnership or limited liability company that is a member has been dissolved and its business is being wound up.
(1998, c. 432; 2002, c. 288.)
Sections: Previous 13.1-1035 13.1-1036 13.1-1037 13.1-1038 13.1-1038.1 13.1-1039 13.1-1040 13.1-1040.1 13.1-1040.2 13.1-1041 13.1-1041.1 13.1-1042 13.1-1043 13.1-1044 13.1-1045 NextLast modified: April 2, 2009