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Texas Business Organizations Code - BUS ORG § 101.109. Rights and Duties of Assignee of Membership Interest Before Membership

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A person who is assigned a membership interest in a limited liability company is entitled to:

(1) receive any allocation of income, gain, loss, deduction, credit, or a similar item that the assignor is entitled to receive to the extent the allocation of the item is assigned;

(2) receive any distribution the assignor is entitled to receive to the extent the distribution is assigned;  and

(3) the rights described by Section 101.502.

(b) An assignee of a membership interest in a limited liability company is entitled to become a member of the company on the approval of all of the company's members.

(c) An assignee of a membership interest in a limited liability company is not liable as a member of the company until the assignee becomes a member of the company.

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 101.109. Rights and Duties of Assignee of Membership Interest Before Membership - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-101-109/

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