Tennessee Code 48-230-103 – Discontinuance
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Terms Used In Tennessee Code 48-230-103
- Class: when used with reference to membership interests, means a category of membership interests that differs in one (1) or more rights or preferences from another category of membership interests of the LLC. See Tennessee Code 48-202-101
- Court: includes every court and judge having jurisdiction in the case. See Tennessee Code 48-202-101
- Financial rights: means a member's rights to:
(A) Share in profits and losses as provided in §. See Tennessee Code 48-202-101 - Interest: means either or both of the following rights under the organic law of an unincorporated entity:
(A) The right to receive distributions from the entity either in the ordinary course or upon liquidation. See Tennessee Code 48-11-201 - LLC: means a limited liability company, organized under chapters 201-248 of this title. See Tennessee Code 48-202-101
- Proceeding: includes civil suit and criminal, administrative, and investigatory action. See Tennessee Code 48-202-101
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
A proceeding commenced under this section may not be discontinued or settled without the court‘s approval. If the court determines that a proposed discontinuance or settlement will substantially affect the interest of the LLC or a class of members and/or holders of financial rights, the court shall direct that notice be given the members and/or holders of financial rights affected. If notice is so directed to be given, the court may determine which one (1) or more parties to the suit shall bear the expense of giving such notice, in such proportions as the court finds to be reasonable in the circumstances, and the amount of such expense shall be awarded as special costs of the suit and recoverable in the same manner as other taxable costs.