The first place you need to look is in a document called the "Operating Agreement".  Most LLCs are created with such an agreement that specifies how the business is to be operated.  Moreover this agreement will take precedence over the "default" laws provided by your state.  For example, your state likely has a default law that distributions are proportioned the same as each member's percentage of shares to the LLC.  Your operating agreement could change that to some other percentage and override the default state law.  A common term in this agreement is when and how distributions are to be made.  Whatever is written into your operating agreement regarding distributions is what you will have to follow.  If such an agreement does not exist or does not contain any terms related to distributions then you will have to look to the corporate laws of your state to find your state's default law.  Here in California the default law holds that an LLC may only make a distribution from its profits, you cannot put creditors at risk by making a distribution, and that all members are entitled to the distribution.From the facts you presented the member in question acts would not be in accordance with the laws of California as it was a distribution made only to one member without the agreement of the other members.  You could sue for a court order to require her to return the money.  As far as removing her from the LLC again look to your operating agreement as it should specify how members are removed, otherwise look to your state’s codes on this subject.