KRS 275.172: Expulsion of member of limited liability company -- Conditions.
Where this section sits in the code
- KRS Chapter 275
(1) On application by the limited liability company, a person is expelled as a member
by judicial order:
(a) If the person has engaged or is engaging in wrongful conduct that has
adversely and materially affected, or will adversely and materially affect, the
company's activities;
(b) If the person has willfully or persistently committed, or is willfully and
persistently committing, a material breach of the operating agreement or the
person's duties or obligations under KRS 275.170;
(c) If the person has engaged or is engaging in conduct relating to the company's
activities which makes it not reasonably practicable to carry on the activities
with the person as a member; or
(d) For such other reasons as are set forth in a written agreement.
(2) Upon the effective date of the expulsion, the expelled member shall be dissociated
from and cease to be a member of the company and with respect to the expelled
member's limited liability company interest shall be an assignee.
(3) Except as set forth in a written operating agreement, the dissociation of a member in
accordance with this section does not entitle the former member or any assignee to
any distribution.
Collected 2026-09-05T20:53:27Z. Source file · JSON