(1) On application by the limited liability company, a person is expelled as a member by judicial order:
(a) If the person has engaged or is engaging in wrongful conduct that has adversely and materially affected, or will adversely and materially affect, the company’s activities;
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Terms Used In Kentucky Statutes 275.172

  • Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
  • Operating agreement: means any agreement, written or oral, among all of the members, as to the conduct of the business and affairs of a limited liability company. See Kentucky Statutes 275.015
  • Person: means an individual, a partnership, a domestic or foreign limited liability company, a trust, an estate, an association, a corporation, or any other legal entity. See Kentucky Statutes 275.015

(b) If the person has willfully or persistently committed, or is willfully and persistently committing, a material breach of the operating agreement or the person’s duties or obligations under KRS § 275.170;
(c) If the person has engaged or is engaging in conduct relating to the company’s activities which makes it not reasonably practicable to carry on the activities with the person as a member; or
(d) For such other reasons as are set forth in a written agreement.
(2) Upon the effective date of the expulsion, the expelled member shall be dissociated from and cease to be a member of the company and with respect to the expelled member’s limited liability company interest shall be an assignee.
(3) Except as set forth in a written operating agreement, the dissociation of a member in accordance with this section does not entitle the former member or any assignee to any distribution.
Effective: June 29, 2017
History: Created 2017 Ky. Acts ch. 193, sec. 2, effective June 29, 2017.