C.R.S. § 7-80-1214: Separation of economic rights from governance and control.

(1) The articles of organization or operating agreement of an artist company may provide for the separation of economic rights from governance and control rights.

(2) Any governance and control rights must at all times remain with artist-members in accordance with section 7-80-1203 (1)(c). Nonartist investors may hold economic rights, including rights to distributions, royalties, revenue participation, or other financial returns, without corresponding governance or control rights.

(3) An operating agreement may specify the extent and nature of economic rights held by nonartist investors, including priority of distributions, revenue participation arrangements, recoupment provisions, and other financial terms.