(a)

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Terms Used In Alabama Code 10A-5A-4.05

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
(1) All members shall share equally in any distributions made by a limited liability company before its dissolution and winding up.
(2) A member has a right to a distribution before the dissolution and winding up of a limited liability company as provided in the limited liability company agreement. A decision to make a distribution before the dissolution and winding up of the limited liability company is a decision in the ordinary course of activities and affairs of the limited liability company. A member’s dissociation does not entitle the dissociated member to a distribution.
(3) A member does not have a right to demand and receive a distribution from a limited liability company in any form other than money. Except as otherwise provided in Section assets in winding up limited liability company’s activities and affairs” class=”unlinked-ref” datatype=”S” sessionyear=”2020″ statecd=”AL” title=”10A”>10A-5A-7.06(c), a limited liability company may distribute an asset in kind if each member receives a percentage of the asset in proportion to the member’s share of distributions.
(4) If a member becomes entitled to receive a distribution, the member has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution.
(b)

(1) All members associated with a series shall share equally in any distributions made by the series before its dissolution and winding up.
(2) A member associated with a series has a right to a distribution before the dissolution and winding up of the series as provided in the limited liability company agreement. A decision of the series to make a distribution before the dissolution and winding up of the series is a decision in the ordinary course of activities and affairs of the series. A member’s dissociation from a series with which the member is associated does not entitle the dissociated member to a distribution from the series.
(3) A member associated with a series does not have a right to demand and receive a distribution from the series in any form other than money. Except as otherwise provided in Section 10A-5A-11.14(c), a series may distribute an asset in kind if each member associated with the series receives a percentage of the asset in proportion to the member’s share of distributions from the series.
(4) If a member associated with a series becomes entitled to receive a distribution from the series, the member has the status of, and is entitled to all remedies available to, a creditor of the series with respect to the distribution.
(c) Subsection (a) shall not apply to a distribution made by a series.
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