Tennessee Code 48-249-1115 – Termination of membership interest or financial rights of a disqualified person
Terms Used In Tennessee Code 48-249-1115
- Financial rights: means a member's or holder's rights to:
(A) Share in profits and losses, as provided in §. See Tennessee Code 48-249-102 - holder: means a person, other than a member, owning any financial rights in an LLC. See Tennessee Code 48-249-102
- 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 - Member: means a person that has been admitted to an LLC as a member, as provided in §. See Tennessee Code 48-249-102
- Membership: means the rights and obligations a member has pursuant to a corporation's charter, bylaws and chapters 51-68 of this title. See Tennessee Code 48-51-201
- Membership interest: means a member's interest in an LLC, which shall consist of the member's financial rights and governance rights. See Tennessee Code 48-249-102
- 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.
- Person: means an individual or an entity. See Tennessee Code 48-249-102
- PLLC: has the meaning set forth in §. See Tennessee Code 48-249-102
If the membership interest or financial rights of a member or holder of financial rights is not or are not purchased under § 48-249-1112 or 48-249-1113 within ten (10) months after the death of the member or holder, or within five (5) months after the occurrence of any other event giving rise to the PLLC‘s purchase obligation under § 48-249-1111(a), the PLLC shall immediately terminate the membership interest or financial rights on the PLLC’s books, and the person who is entitled to receive payment in respect of the membership interest or financial rights under § 48-249-1111(a), as well as the member or holder of financial rights, if different from such person, has no further membership interest or financial rights in the PLLC, other than such person’s right to payment of the fair value of the membership interest or financial rights under § 48-249-1112 or 48-249-1113.