Vermont Statutes Title 11 Sec. 603
Terms Used In Vermont Statutes Title 11 Sec. 603
- Member: means a person that is admitted as a patron member or investor member or both in a mutual benefit enterprise. See
- Mutual benefit enterprise: means an enterprise organized under this title. See
- Organic rules: means the articles of organization and bylaws of a mutual benefit enterprise. See
- Person: means an individual; corporation; business trust; cooperative; estate; trust; partnership; limited partnership; limited liability company; mutual benefit enterprise; joint venture; association; public corporation; government or governmental subdivision, agency, or instrumentality; or any other legal or commercial entity. See
- Transfer: includes an assignment, conveyance, deed, bill of sale, lease, mortgage, security interest, encumbrance, gift, and transfer by operation of law. See
§ 603. Transferability of member‘s interest
(a) The provisions relating to the transferability of a member’s interest are subject to Title 9A.
(b) Unless the organic rules otherwise provide, a member’s interest other than financial rights is not transferable.
(c) Unless a transfer is restricted or prohibited by the organic rules, a member may transfer its financial rights in the mutual benefit enterprise.
(d) The terms of any restriction on transferability of financial rights shall be:
(1) set forth in the organic rules and the member records of the enterprise; and
(2) conspicuously noted on any certificates evidencing a member’s interest.
(e) A transferee of a member’s financial rights, to the extent the rights are transferred, has the right to share in the allocation of profits or losses and to receive the distributions to the member transferring the interest to the same extent as the transferring member.
(f) A transferee of a member’s financial rights does not become a member upon transfer of the rights unless the transferee is admitted as a member by the mutual benefit enterprise.
(g) A mutual benefit enterprise need not give effect to a transfer under this section until the enterprise has notice of the transfer.
(h) A transfer of a member’s financial rights in violation of a restriction on transfer contained in the organic rules is ineffective as to a person having notice of the restriction at the time of transfer. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)