Utah § 48-3a-1111 Purchase of interest upon death, incapacity, or disqualification of member.

Utah Statutes

§ 48-3a-1111 — Purchase of interest upon death, incapacity, or disqualification of member.

Utah·Title 48 Unincorporated Business Entity Act·Ch. 48-3a Utah Revised Uniform Limited Liability Company Act·Part 48-3a-11 Professional Services Companies

(1)Subject to this part, one or more of the following may provide for the purchase of a member's interest in a professional services company upon the death, incapacity, or disqualification of the member:

(1)(a) the certificate of organization;

(1)(b) the operating agreement; or

(1)(c) a private agreement.

(2)In the absence of a provision described in Subsection (1), a professional services company shall purchase the interest of a member who is deceased, incapacitated, or no longer qualified to own an interest in the professional services company within 90 days after the day on which the professional services company is notified of the death, incapacity, or disqualification.

(3)If a professional services company purchases a member's interest under Subsection (2), the professional servic

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(1) Subject to this part, one or more of the following may provide for the purchase of a member's interest in a professional services company upon the death, incapacity, or disqualification of the member:

(1)(a) the certificate of organization;
(1)(b) the operating agreement; or
(1)(c) a private agreement.
(2) In the absence of a provision described in Subsection (1), a professional services company shall purchase the interest of a member who is deceased, incapacitated, or no longer qualified to own an interest in the professional services company within 90 days after the day on which the professional services company is notified of the death, incapacity, or disqualification.
(3) If a professional services company purchases a member's interest under Subsection (2), the professional services company shall purchase the interest at a price that is the reasonable fair market value as of the date of death, incapacity, or disqualification.
(4) If a professional services company fails to purchase a member's interest as required by Subsection (2) at the end of the 90-day period described in Subsection (2), the following persons may bring an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, to enforce Subsection (2):

(4)(a) the personal representative of a deceased member;
(4)(b) the guardian or conservator of an incapacitated member; or
(4)(c) the disqualified member.
(5) A court in which an action is brought under Subsection (4) may:

(5)(a) award the person bringing the action the reasonable fair market value of the interest; or
(5)(b) within the court's jurisdiction, order the liquidation of the professional services company.
(6) If a person described in Subsections (4)(a) through (c) is successful in an action under Subsection (4), the court shall award the person reasonable attorney's fees and costs.

Utah § 48-3a-1111 (Purchase of interest upon death, incapacity, or disqualification of member.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.