16-20-603. Effect of dissociation.
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/ut/title-16/chapter-20/16-20-603A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 10/1/2026
16-20-603. Effect of dissociation.
(1)If a person is dissociated as a member:
(a)the person's right to participate as a member in the management and conduct of the company's activities and affairs terminates;
(b)if the limited liability company is member-managed, the person's duties and obligations under Section 16-20-409 as a member end with regard to matters arising and events occurring after the person's dissociation; and
(c)subject to Section 16-20-504 and Chapter 1a, Part 7, Merger, Chapter 1a, Part 8, Interest Exchange, Chapter 1a, Part 9, Conversion, or Chapter 1a, Part 10, Domestication, any transferable interest owned by the person in the person's capacity as a member immediately before dissociation as a member is owned by the person solely as a transferee.
(2)A person's dissociation as a member does not of itself discharge the person from any debt, obligation, or other liability to the limited liability company or the other members which the person incurred while a member.
Renumbered and Amended by Chapter 93 , 2026 General Session