Source: https://code.dccouncil.us/dc/council/code/titles/29/chapters/8/subchapters/I/
Timestamp: 2019-04-20 22:56:03+00:00

Document:
Chapter 8. Limited Liability Companies.
Subchapter II. Formation; Certificate of Organization, and Other Filings.
§ 29–801.08. Operating agreement; effect on limited liability company and persons becoming members; preformation agreement.
§ 29–801.09. Operating agreement; effect on third parties and relationship to records effective on behalf of limited liability company.
This chapter may be cited as the “Uniform Limited Liability Company Act of 2010”.
Uniform Law: This section is based on § 101 of the Uniform Limited Company Act (2006 Act).
(1) “Certificate of organization”, except when referring to a right of contribution, means the certificate required by § 29-802.01. The term “certificate of organization” shall include the certificate as amended or restated.
(C) In the person’s capacity as a member and in accordance with the operating agreement or an agreement between the member and the company.
(3) “Distribution” means a transfer of money or other property from a limited liability company to another person on account of a transferable interest or in the person’s capacity as a member.
(ii) A transfer to a member in return for the member’s relinquishment of any right to participate as a member in the management or conduct of the company’s activities and affairs or to have access to records or other information concerning the company’s activities and affairs.
(B) The term does not include amounts constituting reasonable compensation for present or past services or payments made in the ordinary course of business under a bona fide retirement plan or other bona fide benefits program.
(4) “Effective”, with respect to a record required or permitted to be delivered to the Mayor for filing under this chapter, means effective under § 29-102.03.
(5) “Foreign limited liability company” means an unincorporated entity formed under the law of a jurisdiction other than the District which would be a limited liability company if formed under the law of the District.
(6) “Manager” means a person that under the operating agreement of a manager-managed limited liability company is responsible, alone or in concert with others, for performing the management functions stated in § 29-804.07(c).
(7) “Manager-managed limited liability company” means a limited liability company that qualifies under § 29-804.07(a).
(8) “Member” means a person that has become a member of a limited liability company under § 29-804.01, or was a member in a limited liability company when the company became subject to this chapter under § 29-810.01, and has not dissociated under § 29-806.02.
(9) “Member-managed limited liability company” means a limited liability company that is not a manager-managed limited liability company.
(10) “Operating agreement” means the agreement, whether or not referred to as an operating agreement and whether oral, in a record, implied, or in any combination thereof, of all the members of a limited liability company, including a sole member, concerning the matters described in § 29-801.07. The term includes the agreement as amended or restated.
(11) “Organizer” means a person that acts under § 29-802.01 to form a limited liability company.
(12) “Transferable interest” means the right, as initially owned by a person in the person’s capacity as a member, to receive distributions from a limited liability company in accordance with the operating agreement, whether or not the person remains a member or continues to own any part of the right. The term applies to any fraction of the interest, by whomever owned.
(13) “Transferee” means a person to which all or part of a transferable interest has been transferred, whether or not the transferor is a member.
This section is referenced in § 29-804.05 and § 29-810.01.
Uniform Law: This section is based on § 102 of the Uniform Limited Company Act (2006 Act).
(a) A limited liability company is an entity distinct from its member or members.
(b) A limited liability company may have any lawful purpose, regardless of whether for profit.
(c) A limited liability company shall have perpetual duration.
The 2013 amendment by D.C. Law 19-210 substituted “member or members” for “members” in (a).
Uniform Law: This section is based on § 104 of the Uniform Limited Company Act (2006 Act).
A limited liability company shall have the capacity to sue and be sued in its own name and the power to do all things necessary or convenient to carry on its activities and affairs.
Uniform Law: This section is based on § 105 of the Uniform Limited Company Act (2006 Act).
(b) To the extent the operating agreement does not otherwise provide for a matter described in subsection (a) of this section, this chapter shall govern the matter.
(11) Except as otherwise provided in § 29-801.08 or 29-801.09(b), restrict the rights under this chapter of a person other than a member or manager.
(14) Vary the provisions of § 29-808.05, except that the operating agreement may provide that the company may not have a special litigation committee.
(15) [(15)]Vary the power of a person to dissociate under § 29-807.01, except to require that notice of dissociation be in a record.
(1) The operating agreement may specify the method by which a specific act or transaction that would otherwise violate the duty of loyalty may be authorized or ratified by one or more disinterested and independent persons after full disclosure of all material facts.
(2) To the extent the operating agreement of a member-managed limited liability company expressly relieves a member of a responsibility that the member would otherwise have under this chapter and imposes the responsibility on one or more other members, the operating agreement may, to the benefit of the member that the operating agreement relieves of the responsibility, also eliminate or limit any fiduciary duty that would have pertained to the responsibility.
(D) Alter or eliminate any other fiduciary duty.
This section is referenced in § 29-801.02, § 29-801.09, § 29-802.01, and § 29-804.08.
Uniform Law: This section is based on § 110 of the Uniform Limited Company Act (2006 Act).
(a) A limited liability company shall be bound by, and may enforce, the operating agreement, whether or not the company has itself manifested assent to the operating agreement.
(b) A person that becomes a member of a limited liability company shall be deemed to assent to the operating agreement.
(c) Two or more persons intending to become the initial members of a limited liability company may make an agreement providing that upon the formation of the company the agreement will become the operating agreement. One person intending to become the initial member of a limited liability company may assent to terms providing that, upon the formation of the company, the terms will become the operating agreement.
Uniform Law: This section is based on § 111 of the Uniform Limited Company Act (2006 Act).
(a) An operating agreement may specify that its amendment requires the approval of a person that is not a party to the operating agreement or the satisfaction of a condition. An amendment shall be ineffective if its adoption does not include the required approval or satisfy the specified condition.
(b) The obligations of a limited liability company and its members to a person in the person’s capacity as a transferee or dissociated member shall be governed by the operating agreement. Subject only to any court order issued under § 29-805.03(b)(2) to effectuate a charging order, an amendment to the operating agreement made after a person becomes a transferee or dissociated member shall be effective with regard to any debt, obligation, or other liability of the limited liability company or its members to the person in the person’s capacity as a transferee or dissociated member and is not effective to the extent the amendment imposes a new debt, obligation, or other liability on the transferee or person dissociated as a member.
(c) If a record that has been delivered by a limited liability company to the Mayor for filing and has become effective under this chapter contains a provision that would be ineffective under § 29-801.07(c) or (d)(3) if contained in the operating agreement, the provision shall likewise be ineffective in the record.
(2) The record shall prevail as to other persons to the extent they reasonably rely on the record.
This section is referenced in § 29-801.07, § 29-802.01, and § 29-810.01.
The 2013 amendment by D.C. Law 19-210 added “and is not effective to the extent the amendment imposes a new debt, obligation, or other liability on the transferee or person dissociated as a member” at the end of (b); and substituted “§ 29-801.07(c) or (d)(3)” for “§ 29-801.07(c)” in (c).
Uniform Law: This section is based on § 112 of the Uniform Limited Company Act (2006 Act).

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