47-34A-403. Member's and manager's rights to payments and reimbursement.
211 words·~1 min read·
/sd/title-47/chapter-47-34/47-34a-403A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)A limited liability company shall reimburse a member or manager for payments made and indemnify a member or manager for liabilities incurred by the member or manager in the ordinary course of the business of the company or for the preservation of its business or property.
(b)A limited liability company shall reimburse a member for an advance to the company beyond the amount of contribution the member agreed to make.
(c)A payment or advance made by a member which gives rise to an obligation of a limited liability company under subsection
(a)or
(b)constitutes a loan to the company upon which interest accrues from the date of the payment or advance.
(d)A member is not entitled to remuneration for services performed for a limited liability company, except for reasonable compensation for services rendered in winding up the business of the company.
(e)A limited liability company may purchase and maintain insurance on behalf of a member or manager of the limited liability company against liability asserted against or incurred by the member or manager in that capacity or arising from that status even if the operating agreement could not eliminate or limit the person's liability to the company for the conduct giving rise to the liability.