October 1, 2022
Corporate Compliance
Agreements of LLC and Partnerships
Effective October 1st, House Bill 342 and Senate Bill 261 permits LLC and Partnership agreements to transfer interest in the company to a certain person on the occurrence of certain events regardless of whether the person is a member.
"AN ACT concerning 2 Corporations and Associations – Limited Liability Companies and Partnerships Operating Agreements and Partnership Agreements
FOR the purpose of authorizing the operating agreement of a limited liability company to provide for the transfer or assignment of an interest in the company to a certain person on the occurrence of certain events regardless of whether the person is a member; authorizing a member of a limited liability company to retain the member’s noneconomic interest in the company on assignment of all of the member’s economic interest in the company under certain circumstances; authorizing a partnership agreement to provide for the transfer or assignment of an interest in the partnership to a certain person on the occurrence of certain events regardless of whether the person is a partner; establishing that transfers on death pursuant to an operating agreement or a partnership agreement are not testamentary; and generally relating to operating agreements of limited liability companies and partnership agreements."
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"AN ACT concerning 2 Corporations and Associations – Limited Liability Companies and Partnerships Operating Agreements and Partnership Agreements
FOR the purpose of authorizing the operating agreement of a limited liability company to provide for the transfer or assignment of an interest in the company to a certain person on the occurrence of certain events regardless of whether the person is a member; authorizing a member of a limited liability company to retain the member’s noneconomic interest in the company on assignment of all of the member’s economic interest in the company under certain circumstances; authorizing a partnership agreement to provide for the transfer or assignment of an interest in the partnership to a certain person on the occurrence of certain events regardless of whether the person is a partner; establishing that transfers on death pursuant to an operating agreement or a partnership agreement are not testamentary; and generally relating to operating agreements of limited liability companies and partnership agreements."
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