§ 10A-5-6.02 — Transferability of Member’s Interest. Repealed in the 2014 Regular Session by Act 2014-144 Effective January 1, 2017

Alabama § 10A-5-6.02

• Jurisdiction: Alabama
• Title 10A: Alabama Business and Nonprofit Entities Code
• Ch. 5: Limited Liability Companies
• Art. 6: Transfer of Membership Interest

Text

(a) Except as otherwise provided in the operating agreement:
(1) A membership interest in a limited liability company is assignable in whole or in part.
(2) An assignment of a member’s interest in a limited liability company does not of itself dissolve the limited liability company or entitle the assignee to exercise any management rights.
(3) An assignment only entitles the assignee to the financial rights of the assignor to the extent assigned.
(4) A member who assigns the member’s interest in a limited liability company does not cease to be a member until the assignee is substituted as provided in Section 10A-5-6.03.
(b) A limited liability company, in the governing documents, may provide that a member’s interest in the limited liability company may be evidenced by a certificate of limited liability company interest issued by the limited liability company. Any provision for the assignment or transfer of a limited liability company interest represented by such a certificate shall be consistent with this chapter.
(c) Any purported transfer of a member’s interest in violation of this section is void.

Legislative History

(Acts 1993, No. 93-724, p. 1425, §32; §10-12-32; amended and renumbered by Act 2009-513, p. 967, §234.)