Arkansas § 4-38-404 Sharing of and right to distributions before dissolution

Arkansas Statutes

§ 4-38-404 — Sharing of and right to distributions before dissolution

Arkansas § 4-38-404

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This text of Arkansas § 4-38-404 (Sharing of and right to distributions before dissolution) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ark. Code Ann. § 4-38-404 (2026).

Text

(a)Any distribution made by a limited liability company before its dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the extent necessary to comply with a transfer effective under § 4-38-502 or charging order in effect under § 4-38-503 .

(b)A person has a right to a distribution before the dissolution and winding up of a limited liability company only if the company decides to make an interim distribution. A person's dissociation does not entitle the person to a distribution.

(c)A person does not have a right to demand or receive a distribution from a limited liability company in any form other than money. Except as otherwise provided in § 4-38-707(d) , a company may distribute an asset in kind only if each part of the asset i

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(a) Any distribution made by a limited liability company before its dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the extent necessary to comply with a transfer effective under § 4-38-502 or charging order in effect under § 4-38-503 . (b) A person has a right to a distribution before the dissolution and winding up of a limited liability company only if the company decides to make an interim distribution. A person's dissociation does not entitle the person to a distribution. (c) A person does not have a right to demand or receive a distribution from a limited liability company in any form other than money. Except as otherwise provided in § 4-38-707(d) , a company may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person's share of distributions. (d) If a member or transferee becomes entitled to receive a distribution, the member or transferee has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution. However, the company's obligation to make a distribution is subject to offset for any amount owed to the company by the member or a person dissociated as a member on whose account the distribution is made.