This text of Iowa § 489.601 (Power to dissociate as a member — wrongful dissociation) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1. 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 489.602, subsection 1.
2. A person’s dissociation as a member is wrongful only if any of the following applies to
the dissociation:
a. It is in breach of an express provision of the operating agreement.
b. It occurs before the completion of the winding up of the limited liability company and
any of the following applies:
(1)The person withdraws as a member by express will.
(2)Thepersonisexpelledasamemberbyjudicialorderundersection489.602,subsection
6.
(3)The person is dissociated under section 489.602, subsection 8.
(4)In the case of a person that is not a trust other than a business trust, an estate, or an
individual, the person is expelle
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1. 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 489.602, subsection 1.
2. A person’s dissociation as a member is wrongful only if any of the following applies to
the dissociation:
a. It is in breach of an express provision of the operating agreement.
b. It occurs before the completion of the winding up of the limited liability company and
any of the following applies:
(1) The person withdraws as a member by express will.
(2) Thepersonisexpelledasamemberbyjudicialorderundersection489.602,subsection
6.
(3) The person is dissociated under section 489.602, subsection 8.
(4) 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.
3. A person that wrongfully dissociates as a member is liable to the limited liability
company and, subject to section 489.801, to the other members for damages caused by
the dissociation. The liability is in addition to any debt, obligation, or other liability of the
member to the company or the other members.