§ 29-3107 — Operating agreement; amendment; effect on third parties and relationship to records effective on behalf of limited liability company

Arizona § 29-3107

• Jurisdiction: Arizona
• Title 29: Arizona Revised Statutes
• Ch. 7: ARIZONA LIMITED LIABILITY COMPANY ACT
• Art. 1: General Provisions

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A. An operating agreement may specify that its amendment requires the approval of a person that is not a party to the agreement or the satisfaction of a condition. An amendment is ineffective if its adoption does not include the required approval or satisfy the specified condition.

B. The obligations of a limited liability company and its members to a person in the person's capacity as a transferee or a person dissociated as a member are governed by the operating agreement. Subject to section 29-3409, subsections D and L, an amendment to the operating agreement made after a person becomes a transferee or is dissociated as a member:

1. Is effective with regard to any debt, obligation or other liability of the limited liability company or its members to the person in the person's capacity as a transferee or person dissociated as a member.

2. Is not effective to the extent the amendment imposes a new debt, obligation or other liability on the transferee or person dissociated as a member.

C. If a record delivered by a limited liability company to the commission for filing becomes effective and contains a provision that would be ineffective under section 29-3105, subsection C if contained in the operating agreement, the provision is ineffective in the record.

D. Subject to subsection C of this section, if a record delivered by a limited liability company to the commission for filing becomes effective and conflicts with a provision of the operating agreement:

1. The agreement prevails as to members, persons dissociated as members, transferees and managers.

2. The record prevails as to other persons to the extent they reasonably rely on the record.