Current as of January 01, 2020 | Updated by FindLaw Staff
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(a) A member of an LLC is entitled to dissent from, and obtain payment of the fair value, as determined under § 48-231-206, of the member's membership interests in the event of, any of the following LLC actions:
(1) Consummation of a plan of merger to which the LLC is a party;
(2) Consummation of a sale, lease, transfer, or other disposition of all or substantially all of the property and assets of the LLC not made in the usual or regular course of its business, but not including a disposition in dissolution described in § 48-245-501(d), or a disposition pursuant to an order of a court, or a disposition for cash on terms requiring that all or substantially all of the net proceeds of disposition be distributed to the members in accordance with their respective membership interests within one (1) year after the date of disposition;
(3) Except as provided in the articles or operating agreement in effect when the person becomes a member or placed in such agreement without the opposing vote of the member, an amendment of the articles or operating agreement that materially and adversely affects the rights or preferences of the membership interests of the dissenting member because it:
(A) Alters or abolishes a preferential right of the membership interests;
(B) Alters or abolishes a preemptive right of the owner of the membership interests to make a contribution;
(C) Excludes or limits the right of a member to vote on a matter, or to cumulate votes, except as the right may be excluded or limited through the acceptance of contributions or the making of contribution agreements pertaining to membership interests with similar or different voting rights; or
(D) Establishes or changes the conditions for or consequences of expulsion;
(4) An amendment to the articles or operating agreement that materially and adversely affects the rights or preferences of the membership interests of the dissenting member because it:
(A) Changes a member's right to resign or retire; or
(B) Alters or abolishes a right in respect of the redemption of the membership interests, including a provision respecting a sinking fund for the redemption or repurchase of such membership interests;
(5) Any other LLC action taken pursuant to a member vote to the extent the articles, the operating agreement, or a resolution approved by the members provides that dissenting members are entitled to dissent and obtain payment for their membership interests.
(b) A member entitled to dissent and obtain payment for such member's membership interest under this chapter may not challenge the LLC action creating such member's entitlement unless the action is unlawful or fraudulent with respect to the member or the LLC.
Cite this article: FindLaw.com - Tennessee Code Title 48. Corporations and Associations § 48-231-201 - last updated January 01, 2020 | https://codes.findlaw.com/tn/title-48-corporations-and-associations/tn-code-sect-48-231-201/
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