§ 4A-906

Maryland § 4A-906

• Jurisdiction: Maryland
• Article gca: Corporations and Associations
• Title: 4A

Text

On the winding up and termination of a limited liability company, the assets shall be distributed as follows:

(1) To creditors, including members who are creditors, to the extent permitted by law, in satisfaction of the liabilities of the limited liability company; and

(2) Unless otherwise agreed, to the members in proportion to their respective capital contribution values, after the capital contribution values are adjusted by:

(i) Adding to the members’ capital contribution values their respective shares of the profits of the limited liability company; and

(ii) Deducting from the members’ capital contribution values their respective shares of the losses of the limited liability company and all distributions previously received by the members.