Source: https://chowinslaw.com/resources/texas-business-laws/318-series-in-texas-limited-liability-companies
Timestamp: 2019-04-23 04:33:12+00:00

Document:
§ 101.601. SERIES OF MEMBERS, MANAGERS, MEMBERSHIP INTERESTS, OR ASSETS.
(b) A series established in accordance with Subsection (a) may carry on any business, purpose, or activity, whether or not for profit, that is not prohibited by § 2.003.
§ 101.602. ENFORCEABILITY OF OBLIGATIONS AND EXPENSES OF SERIES AGAINST ASSETS.
(2) a limited liability company from expressly agreeing in the company agreement or other written agreement that any or all of the debts, liabilities, obligations, and expenses incurred, contracted for, or otherwise existing with respect to a particular series shall be enforceable against the assets of the company generally.
§ 101.603. ASSETS OF SERIES.
(a) Assets associated with a series may be held directly or indirectly, including being held in the name of the series, in the name of the limited liability company, through a nominee, or otherwise.
(b) If the records of a series are maintained in a manner so that the assets of the series can be reasonably identified by specific listing, category, type, quantity, or computational or allocational formula or procedure, including a percentage or share of any assets, or by any other method in which the identity of the assets can be objectively determined, the records are considered to satisfy the requirements of § 101.602(b)(1).
§ 101.604. NOTICE OF LIMITATION ON LIABILITIES OF SERIES.
§ 101.605. GENERAL POWERS OF SERIES.
(6) exercise any power or privilege as necessary or appropriate to the conduct, promotion, or attainment of the business, purposes, or activities of the series.
§ 101.606. LIABILITY OF MEMBER OR MANAGER FOR OBLIGATIONS; DUTIES.
(a) Except as and to the extent the company agreement specifically provides otherwise, a member or manager associated with a series or a member or manager of the company is not liable for a debt, obligation, or liability of a series, including a debt, obligation, or liability under a judgment, decree, or court order.
(3) a member or manager of the company.
§ 101.607. CLASS OR GROUP OF MEMBERS OR MANAGERS.
(2) provide for the manner of establishing additional classes or groups of one or more members or managers associated with the series each of which has certain express rights, powers, and duties, including providing for voting rights and rights, powers, and duties senior to existing classes and groups of members or managers associated with the series.
(b) The company agreement may provide for the taking of an action, including the amendment of the company agreement, without the vote or approval of any member or manager or class or group of members or managers, to create under the provisions of the company agreement a class or group of the series of membership interests that was not previously outstanding.
(3) voting by members or managers associated with a series is on a per capita, number, financial interest, class, group, or any other basis.
(a) Notwithstanding any conflicting provision of the certificate of formation of a limited liability company, the governing authority of a series consists of the managers or members associated with the series as provided in the company agreement.
(2) the members associated with the series, if the company's certificate of formation states that the company will not have managers.
§ 101.609. APPLICABILITY OF OTHER PROVISIONS OF CHAPTER OR TITLE 1; SYNONYMOUS TERMS.
(a) To the extent not inconsistent with this subchapter, this chapter applies to a series and its associated members and managers.
(3) a reference to "manager" means "manager associated with the series."
(4) a reference to "officer" includes "officer associated with the series."
§ 101.610. EFFECT OF CERTAIN EVENT ON MANAGER OR MEMBER.
(a) An event that under this chapter or the company agreement causes a manager to cease to be a manager with respect to a series does not, in and of itself, cause the manager to cease to be a manager of the limited liability company or with respect to any other series of the company.
(b) An event that under this chapter or the company agreement causes a member to cease to be associated with a series does not, in and of itself, cause the member to cease to be associated with any other series or terminate the continued membership of a member in the limited liability company or require the winding up of the series, regardless of whether the member was the last remaining member associated with the series.
§ 101.611. MEMBER STATUS WITH RESPECT TO DISTRIBUTION.
(a) Subject to §§ 101.613, 101.617, 101.618, 101.619, and 101.620, when a member associated with a series established under this subchapter is entitled to receive a distribution with respect to the series, the member, with respect to the distribution, has the same status as a creditor of the series and is entitled to any remedy available to a creditor of the series.
(b) § 101.206 does not apply to a distribution with respect to the series.
§ 101.612. RECORD DATE FOR ALLOCATIONS AND DISTRIBUTIONS.
A company agreement may establish or provide for the establishment of a record date for allocations and distributions with respect to a series.
(a) A limited liability company may make a distribution with respect to a series.
(b) A limited liability company may not make a distribution with respect to a series to a member if, immediately after making the distribution, the total amount of the liabilities of the series, other than liabilities described by Subsection (c), exceeds the fair value of the assets associated with the series.
(2) except as provided by Subsection (e), a liability of the series for which the recourse of creditors is limited to specified property of the series.
(d) For purposes of Subsection (b), the assets associated with a series include the fair value of property of the series subject to a liability for which recourse of creditors is limited to specified property of the series only if the fair value of that property exceeds the liability.
(e) A member who receives a distribution from a series in violation of this § is not required to return the distribution to the series unless the member had knowledge of the violation.
(f) This § may not be construed to affect the obligation of a member to return a distribution to the series under the company agreement or other state or federal law.
(g) § 101.206 does not apply to a distribution with respect to a series.
(h) For purposes of this section, "distribution" does not include an amount constituting reasonable compensation for present or past services or a reasonable payment made in the ordinary course of business under a bona fide retirement plan or other benefits program.
§ 101.614. AUTHORITY TO WIND UP AND TERMINATE SERIES.
Except to the extent otherwise provided in the company agreement and subject to §§ 101.617, 101.618, 101.619, and 101.620, a series and its business and affairs may be wound up and terminated without causing the winding up of the limited liability company.
§ 101.615. TERMINATION OF SERIES.
(a) Except as otherwise provided by §§ 101.617, 101.618, 101.619, and 101.620, the series terminates on the completion of the winding up of the business and affairs of the series in accordance with §§ 101.617, 101.618, 101.619, and 101.620.
(b) The limited liability company shall provide notice of the termination of a series in the manner provided in the company agreement for notice of termination, if any.
(c) The termination of the series does not affect the limitation on liabilities of the series provided by § 101.602.
§ 101.616. EVENT REQUIRING WINDING UP.
(E) a determination by a court in accordance with § 101.621.
§ 101.617. PROCEDURES FOR WINDING UP AND TERMINATION OF SERIES.
(2) Subchapter B, Chapter 11, other than §§ 11.051, 11.056, 11.057, 11.058, and 11.059.
(4) a reference to "business," "property," "obligations," or "liabilities" means the "business associated with the series," "property associated with the series," "obligations associated with the series," or "liabilities associated with the series."
(2) a person appointed by the court to carry out the winding up of the series under § 11.054, 11.405, 11.409, or 11.410.
(d) An action taken in accordance with this § does not affect the limitation on liability of members and managers provided by § 101.606.
§ 101.618. REVOCATION OF VOLUNTARY WINDING UP.
(2) if the series has no members, a majority vote of all the managers associated with the series approving the revocation or, if there is more than one class or group of managers associated with the series, a majority vote of the managers of each class or group of managers associated with the series approving the revocation.
§ 101.619. CANCELLATION OF EVENT REQUIRING WINDING UP.
(a) Unless the cancellation is prohibited by the company agreement, an event requiring winding up of the series under § 101.616(1) or (2) may be canceled by the consent of all of the members of the series before the termination of the series takes effect.
(2) eliminate or revise the event specified with respect to the series if the event requiring winding up of the series occurred under § 101.616(2).
§ 101.620. CONTINUATION OF BUSINESS.
The series may continue its business following the revocation under § 101.618 or the cancellation under § 101.619.
§ 101.621. WINDING UP BY COURT ORDER.
A district court in the county in which the registered office or principal place of business in this state of a domestic limited liability company is located, on application by or for a member associated with the series, has jurisdiction to order the winding up and termination of a series if the court determines that it is not reasonably practicable to carry on the business of the series in conformity with the company agreement.
§ 101.622. SERIES NOT A SEPARATE DOMESTIC ENTITY OR ORGANIZATION.
For purposes of this chapter and Title 1, a series has the rights, powers, and duties provided by this subchapter to the series but is not a separate domestic entity or organization.

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