(a) Except as provided in § 48-231-208, as soon as the proposed LLC action is effectuated, or upon receipt of a payment demand, whichever is later, the LLC shall pay each dissenter who complied with § 48-231-205 the amount the LLC estimates to be the fair value of such dissenter’s partnership interest, plus accrued interest.
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Terms Used In Tennessee Code 48-231-206

  • Dissenter: means a member who is entitled to dissent from LLC action under §. See Tennessee Code 48-231-101
  • Fair value: means the value of the dissenter's membership interest of an LLC immediately before the effective date of the LLC action referred to in §. See Tennessee Code 48-231-101
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Interest: means interest from the effective date of the action referred to in §. See Tennessee Code 48-231-101
  • LLC: means an LLC whose members have obtained rights to dissent under §. See Tennessee Code 48-231-101
  • Member: includes a former member when dissenters' rights exist because:
    (A) The membership of that former member has terminated causing dissolution. See Tennessee Code 48-231-101
  • Membership: means the rights and obligations a member has pursuant to a corporation's charter, bylaws and chapters 51-68 of this title. See Tennessee Code 48-51-201
  • Membership interest: means a member's interest in an LLC consisting of a member's financial rights, a member's right to assign financial rights as provided in §. See Tennessee Code 48-202-101
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(b) The payment must be accompanied by:

(1) The LLC’s balance sheet as of the end of a fiscal year ending not more than sixteen (16) months before the date of payment, an income statement for that year, and the latest available interim financial statements, if any;
(2) A statement of the LLC’s estimate of the fair value of the membership interests;
(3) An explanation of how the value of the membership interest was calculated;
(4) A statement of the dissenter’s right to demand payment under § 48-231-209; and
(5) A copy of this chapter, if the LLC has not previously sent a copy of this chapter to the member pursuant to § 48-231-202 or § 48-231-204.
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