North Carolina General Statutes 57D-3-02. Cessation of membership
(a) A person ceases to be a member upon the occurrence of any of the following events:
(1) The person does any of the following:
a. Becomes a debtor in bankruptcy.
b. Executes an assignment for the benefit of creditors under any applicable law.
c. Has a general receiver appointed for the person pursuant to N.C. Gen. Stat. § 1-507.24 or has a trustee, receiver, or liquidator appointed for the person or for all or substantially all of the person’s property.
(2) In the case of an individual, the person’s death or being adjudicated by a court of competent jurisdiction as incompetent to manage his or her person or property.
(3) In the case of a member with an economic interest, the transfer or abandonment of the person’s entire economic interest, excluding the liquidation of a member’s economic interest in connection with the dissolution and winding up of the LLC under N.C. Gen. Stat. § 57D-6-08(2), regardless of whether the transferee is or becomes a member.
(4) The person abandoning all of the rights of his ownership interest except his economic interest, or any portion thereof.
(b) Upon the occurrence of any of the events described in subdivisions (1) and (2) of subsection (a) of this section with respect to a member, that person or that person’s estate, as applicable, will automatically become an economic interest owner entitled only to the economic interest attributable to the person’s ownership interest, but that person or that person’s estate, as applicable, and any other person who ceases to be a member shall remain liable to the LLC for any obligation the person may have under N.C. Gen. Stat. § 57D-4-02, 57D-4-06, and 57D-6-12(a)(2). ?(2013-157, s. 2; 2020-75, s. 3(b).)
Terms Used In North Carolina General Statutes 57D-3-02
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
- Trustee: A person or institution holding and administering property in trust.