Source: https://dahlelaw.com/minnesota-limited-liability-companies/minnesota-llc-transferable-interest/
Timestamp: 2018-04-24 12:28:57
Document Index: 557936274

Matched Legal Cases: ['§ 322', '§ 322', '§ 322', '§ 322', '§ 322', '§ 322', '§ 322', '§ 322', '§ 322', '§ 322', '§ 322', '§ 322']

Minnesota LLC Transferable Interest - Gary C. Dahle, Attorney at Law
Minnesota LLC Transferable Interest – Defined
M.S. § 322C.0102, Subd. 28 defines the term transferable interest with respect to a Minnesota limited liability company, in the following manner:
to receive distributions from a limited liability company in accordance with the operating agreement
Minnesota LLC Transferable Interest – Nature
M.S. § 322C.0501 identifies the nature of a Minnesota LLC transferable interest – by providing as follows:
Minnesota LLC Transferable Interest – Transfer
M.S. § 322C.0102, Subd. 27 defines the term transfer, with respect to a Minnesota LLC transferable interest, in the following manner:
Subd. 27. Transfer
Minnesota LLC Transferable Interest -Transfers
M.S. § 322C.0502, Subd. 1 addresses issues relating to the transfer of a Minnesota LLC transferable interest – by providing as follows:
Minnesota LLC Transferable Interest – Transferee
M.S. § 322C.0102, Subd. 29 defines the term transferee – with respect to a Minnesota LLC transferable interest – in the following manner:
Subd. 29. Transferee.
“Transferee” means a person
to which all or part of a transferable interest has been transferred,
whether or not the transferor is a member.
Minnesota LLC Transferable Interest – Right to Distributions
M.S. § 322C.0502, Subd. 2 identifies that a transferee of a Minnesota LLC transferable interest has certain rights to receive distributions – by providing as follows:
Subd. 2. Transferee right to distributions.
A transferee has the right to receive,
in accordance with the transfer,
Minnesota LLC Transferable Interest – Accounting Rights
M.S. § 322C.0502, Subd. 3 identifies that a transferee of a Minnesota LLC transferable interest has certain limited rights to receive an accounting from the Company – by providing as follows:
Subd. 3. Transferee right to an account.
In a dissolution and winding up of a limited liability company,
a transferee is entitled to an account of the company’s transactions only from the date of dissolution.
Minnesota LLC Transferable Interest – Membership Certificates
M.S. § 322C.0502, Subd. 4 identifies that a Minnesota LLC transferable interest may be evidenced by a membership certificate – by providing as follows:
Subd. 4. Evidence of interest.
A transferable interest may be evidenced by a certificate of the interest issued by the limited liability company in a record,
and, subject to this section,
the interest represented by the certificate
may be transferred by a transfer of the certificate.
Such an interest is not a security,
as that term is defined in section 336.8-102, paragraph (a), clause (15),
unless the conditions specified in section 336.8-103, paragraph (c), are satisfied.
Minnesota LLC Transferable Interest – Notice of Transfer
M.S. § 322C.0502, Subd. 5 identifies that a Minnesota LLC must be provided with notice of any transfer of a Minnesota limited liability company transferable interest – by providing as follows:
Subd. 5. Company notice required.
A limited liability company need not give effect to a transferee’s rights under this section until the company has notice of the transfer.
Minnesota LLC Transferable Interest – Improper Transfers
M.S. § 322C.0502, Subd. 6 identifies that any improper transfer of a Minnesota LLC transferable interest – in violation of the terms of an operating agreement – will be ineffective with respect to certain persons, by providing as follows:
Subd. 6. Violative transfers ineffective.
A transfer of a transferable interest in violation of a restriction on transfer contained in the operating agreement is ineffective as to a person having notice of the restriction at the time of transfer.
Minnesota LLC Transferable Interest – Effect of Transfer on Membership Rights
M.S. § 322C.0502, Subd. 7 identifies the effect of any transfer of a Minnesota LLC transferable interest on the membership rights of the transferor – by providing as follows:
Subd. 7. Rights retained.
Except as otherwise provided in section 322C.0602, clause (4), item (ii),
when a member transfers a transferable interest,
retains the rights of a member other than the interest in distributions transferred and
retains all duties and obligations of a member.
Minnesota LLC Transferable Interest – Liability of the Transferee
M.S. § 322C.0502, Subd. 8 identifies the liability of a transferee who becomes a member with respect to any transfer of a Minnesota LLC transferable interest – by providing as follows:
Subd. 8. Transferee liability.
When a member transfers a transferable interest to a person that becomes a member with respect to the transferred interest,
the transferee is liable for
the member’s obligations under sections 322C.0403 and 322C.0406, subdivision 3,
known to the transferee when the transferee becomes a member.
If you desire legal assistance with issues related to any Minnesota LLC transferable interest, please contact Minnesota Attorney Gary C. Dahle.