§ 23-18-6-5 — Cessation of membership

Indiana § 23-18-6-5

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 18: LIMITED LIABILITY COMPANIES
• Ch. 6: Membership

Text

(a) A person ceases to be a member of a limited
liability company upon the occurrence of any of the following events:
(1) The person withdraws from the limited liability company as
provided in section 6 of this chapter.
(2) The person ceases to be a member as provided in section 4(h)
or 4.1(h) of this chapter.
(3) The person is removed as a member:
(A) in accordance with the operating agreement; or
(B) unless otherwise provided in a written operating agreement,
by the affirmative vote, approval, or consent of a majority in
interest of the members after the member has assigned the
member's entire interest in the limited liability company.
(4) Unless otherwise provided in a written operating agreement or
with the written consent of all other members, in the case of a
member who is an individual, the individual's death.
(5) Unless otherwise provided in a written operating agreement or
with the written consent of all other members, in the case of a
member who is acting as a member by virtue of being a trustee of
a trust, the termination of the trust, but not merely the substitution
of a new trustee.
(6) Unless otherwise provided in a written operating agreement or
with the written consent of all other members, in the case of a
member that is a partnership, limited partnership, or another
limited liability company, the dissolution and commencement of
winding up of the partnership, limited partnership, or limited
liability company.
(7) Unless otherwise provided in a written operating agreement or
with the written consent of all other members, in the case of a
member that is a corporation, the dissolution of the corporation.
(8) Unless otherwise provided in a written operating agreement or
with the written consent of all other members, in the case of a
member that is an estate, the distribution by the fiduciary of the
estate's entire interest in the limited liability company.
(b) A written operating agreement may provide for other events that
result in a person ceasing to be a member of the limited liability
company, including insolvency, bankruptcy, and adjudicated
incompetency.

Legislative History

As added by P.L.8-1993, SEC.301. Amended by P.L.269-1999, SEC.11; P.L.99-2024, SEC.4.