Management of a limited liability trust company is vested in the participants in proportion to each participant’s contribution to capital, as adjusted periodically to properly reflect any additional contribution. The articles of association may provide that management of a limited liability trust company is vested in a board of managers to be elected annually by the participants as prescribed by the bylaws.
Participants of a limited liability trust company may not retain management and must elect a board of managers if:
(1) Any participant is disqualified from serving as a managing participant under Section 81-27-6.203;
(2) The limited liability trust company has fewer than five (5) or more than twenty-five (25) participants; or
(3) Any participant has been removed by the commissioner under Subarticle A of Article 6 of this chapter.
The articles of association, bylaws, and participation agreement of a limited liability trust company may use the terms “director” and “board” instead of “manager” and “board of managers,” respectively.