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Tex. Bus. Orgs. Code § 101.109

RIGHTS AND DUTIES OF ASSIGNEE OF MEMBERSHIP INTEREST BEFORE MEMBERSHIP

Applied in 1 court decision — leading case Yaghoub "Jacob" Kohannim v. Parvaneh Katoli (2013)

Most recently applied in Yaghoub "Jacob" Kohannim v. Parvaneh Katoli (July 2013)

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff

(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.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.