Kentucky Statutes 275.220 – Member not entitled to distribution other than in cash — Restriction on in-kind distribution
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Unless otherwise provided in a written operating agreement:
(1) A member, regardless of the nature of the member’s contribution, shall not have a right to demand and receive any distribution from the limited liability company in any form other than cash;
(2) A member shall not be compelled to accept from a limited liability company a distribution of any asset in kind to the extent that the percentage of the asset distributed to the member exceeds the percentage that the member would have shared in a cash distribution equal to the value of the property at the time of distribution; and
(3) The property of a limited liability company shall not be subject to KRS
381.135(1)(a)1.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 133, sec. 33, effective July 15, 2010. — Amended
1998 Ky. Acts ch. 341, sec. 33, effective July 15, 1998. — Created 1994 Ky. Acts ch.
389, sec. 44, effective July 15, 1994.
(1) A member, regardless of the nature of the member’s contribution, shall not have a right to demand and receive any distribution from the limited liability company in any form other than cash;
Terms Used In Kentucky Statutes 275.220
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Operating agreement: means any agreement, written or oral, among all of the members, as to the conduct of the business and affairs of a limited liability company. See Kentucky Statutes 275.015
(2) A member shall not be compelled to accept from a limited liability company a distribution of any asset in kind to the extent that the percentage of the asset distributed to the member exceeds the percentage that the member would have shared in a cash distribution equal to the value of the property at the time of distribution; and
(3) The property of a limited liability company shall not be subject to KRS
381.135(1)(a)1.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 133, sec. 33, effective July 15, 2010. — Amended
1998 Ky. Acts ch. 341, sec. 33, effective July 15, 1998. — Created 1994 Ky. Acts ch.
389, sec. 44, effective July 15, 1994.