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Terms Used In Vermont Statutes Title 11 Sec. 4083

  • Business: includes every trade, occupation, profession, and other lawful purpose, whether or not carried on for profit. See
  • Dissociation: means a complete termination of a member's continued membership in a limited liability company for any reason. See
  • Distributional interest: means the right of a member or transferee to receive a distribution from a limited liability company. See
  • Fiduciary: A trustee, executor, or administrator.
  • Member: means a person that has become a member of a limited liability company under section 4051 of this title and has not dissociated under section 4081 of this title. See
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See

§ 4083. Effect of member‘s dissociation

(a) When a person is dissociated as a member of a limited liability company:

(1) the person’s right to participate as a member in the management and conduct of the company’s business terminates;

(2) if the company is member-managed, the person’s fiduciary duties as a member end with regard to matters arising and events occurring after the person’s dissociation; and

(3) subject to section 4075 of this title and subchapter 10 of this chapter, any distributional interest owned by the person immediately before dissociation in the person’s capacity as a member is owned by the person solely as a transferee.

(b) A person’s dissociation as a member of a limited liability company does not of itself discharge the person from any debt, obligation, or other liability to the company or the other members that the person incurred while a member. (Added 2015, No. 17, § 2.)