Kentucky Statutes 275.310 – Distribution of assets
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Upon the winding up of a limited liability company, the assets shall be distributed as follows:
(1) First, payment or adequate provisions for payment shall be made to creditors, including, to the extent permitted by law, members who are creditors in satisfaction of liabilities of the limited liability company;
(2) Second, unless otherwise provided in a written operating agreement, to members and assignees in satisfaction of liabilities for distributions under KRS § 275.210; and
(3) Third, unless otherwise provided in a written operating agreement, to members and assignees for the return of their contributions; and
(4) Fourth, unless otherwise provided in a written operating agreement, to members and assignees in proportion to their respective rights to share in distributions from the limited liability company prior to dissolution.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 133, sec. 40, effective July 15, 2010. — Amended
1998 Ky. Acts ch. 341, sec. 57, effective July 15, 1998. — Created 1994 Ky. Acts ch.
389, sec. 62, effective July 15, 1994.
(1) First, payment or adequate provisions for payment shall be made to creditors, including, to the extent permitted by law, members who are creditors in satisfaction of liabilities of the limited liability company;
Terms Used In Kentucky Statutes 275.310
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- members: means a person or persons who have been admitted to membership in a limited liability company as provided in KRS §. See Kentucky Statutes 275.015
- 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) Second, unless otherwise provided in a written operating agreement, to members and assignees in satisfaction of liabilities for distributions under KRS § 275.210; and
(3) Third, unless otherwise provided in a written operating agreement, to members and assignees for the return of their contributions; and
(4) Fourth, unless otherwise provided in a written operating agreement, to members and assignees in proportion to their respective rights to share in distributions from the limited liability company prior to dissolution.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 133, sec. 40, effective July 15, 2010. — Amended
1998 Ky. Acts ch. 341, sec. 57, effective July 15, 1998. — Created 1994 Ky. Acts ch.
389, sec. 62, effective July 15, 1994.