South Dakota Codified Laws 47-34A-603. Effect of a member’s dissociation
(a) A limited liability company does not dissolve and wind up its business as result of a member‘s dissociation.
(b) Upon a member’s dissociation from a limited liability company:
Terms Used In South Dakota Codified Laws 47-34A-603
- Business: includes every trade, occupation, profession, and other lawful purpose, whether or not carried on for profit. See South Dakota Codified Laws 47-34A-101
- Member: means a person that:
(A) Prior to formation of the limited liability company, becomes a member as agreed by that person and the organizer of the limited liability company. See South Dakota Codified Laws 47-34A-101
(1) The member’s right to participate in the management and conduct of the company’s business terminates, except as otherwise provided in § 47-34A-803, and the member ceases to be a member and is treated the same as a transferee of a member;
(2) The member’s duty of loyalty under § 47-34A-409(b)(3) terminates; and
(3) The member’s duty of loyalty under § 47-34A-409(b)(1) and (2) and duty of care under § 47-34A-409(c) continue only with regard to matters arising and events occurring before the member’s dissociation.
Source: SL 1998, ch 272, § 603.