Code of Virginia § 13.1-1023.1. Remedies for breach of operating agreement by member or manager.
186 words·~1 min read·
/va/title-13-1/chapter-12/13-1-1023-1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. An operating agreement may provide that:
1. A member or manager who fails to perform in accordance with, or to comply with terms and conditions of, the operating agreement shall be subject to specified penalties or specified consequences; and
2. At the time or upon the happening of events specified in the operating agreement, a member or manager shall be subject to specified penalties or specified consequences.
The specified penalties or specified consequences may include and take the form of any penalty or consequence set forth in subsection D of § 13.1-1027 .
B. In the articles of organization, in writing in an operating agreement or in another writing, a member or manager may consent to or be subject to the nonexclusive jurisdiction of the courts of, or arbitration in, a specified jurisdiction, or the exclusive jurisdiction of the courts of the Commonwealth, or the exclusivity of arbitration in a specified jurisdiction of the Commonwealth, and to be served with legal process in a manner prescribed in the articles of organization, an operating agreement, or other writing.
2003, c. 340 ; 2004, c. 601 .