275.172 Expulsion of member of limited liability company -- Conditions.

KY Rev Stat § 275.172 (2019) (N/A)

Copy with citation

Copy as parenthetical citation

275.172 Expulsion of member of limited liability company -- Conditions. (1) On application by the limited liability company, a person is expelled as a member by judicial order: (a) (b) (c) If the person has engaged or is engaging in wrongful conduct that has adversely and materially affected, or will adversely and materially affect, the company's activities; If the person has willfully or persistently committed, or is willfully and persistently committing, a material breach of the operating agreement or the person's duties or obligations under KRS 275.170; If the person has engaged or is engaging in conduct relating to the company's activities which makes it not reasonably practicable to carry on the activities with the person as a member; or (d) For such other reasons as are set forth in a written agreement. (2) Upon the effective date of the expulsion, the expelled member shall be dissociated from and cease to be a member of the company and with respect to the expelled member's limited liability company interest shall be an assignee. (3) Except as set forth in a written operating agreement, the dissociation of a member in accordance with this section does not entitle the former member or any assignee to any distribution. Effective: June 29, 2017 History: Created 2017 Ky. Acts ch. 193, sec. 2, effective June 29, 2017.

Previous Section

275.170 Duties of care and loyalty -- Approval of conflict of interest transactions -- Remedy for breach of the duty of loyalty.

Next Section

275.175 Number of votes required to do business -- Circumstances requiring affirmative vote of members -- Written operating agreement for company without members -- No right of dissent -- Written operating agreement provisions relating to right to vote, approve, or consent.