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

194 words·~1 min read·/ky/chapter-275/275-172

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)On application by the limited liability company, a person is expelled as a member

by judicial order:

(a)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;

(b)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;

(c)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.