{"data":{"id":"us-al/ala.-code-10a-5a-4.05","jurisdiction":"us-al","citation":"Ala. Code § 10A-5A-4.05","heading":"Sharing of and Right to Distributions Before Dissolution.","body":"(a) (1) All members shall share equally in any distributions made by a limited liability company before its dissolution and winding up.\n(2) A member has a right to a distribution before the dissolution and winding up of a limited liability company as provided in the limited liability company agreement. A decision to make a distribution before the dissolution and winding up of the limited liability company is a decision in the ordinary course of activities and affairs of the limited liability company. A member’s dissociation does not entitle the dissociated member to a distribution.\n(3) A member does not have a right to demand and receive a distribution from a limited liability company in any form other than money. Except as otherwise provided in Section 10A-5A-7.06(c), a limited liability company may distribute an asset in kind if each member receives a percentage of the asset in proportion to the member’s share of distributions.\n(4) If a member becomes entitled to receive a distribution, the member has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution.\n(b)(1) All members associated with a series shall share equally in any distributions made by the series before its dissolution and winding up.\n(2) A member associated with a series has a right to a distribution before the dissolution and winding up of the series as provided in the limited liability company agreement. A decision of the series to make a distribution before the dissolution and winding up of the series is a decision in the ordinary course of activities and affairs of the series. A member’s dissociation from a series with which the member is associated does not entitle the dissociated member to a distribution from the series.\n(3) A member associated with a series does not have a right to demand and receive a distribution from the series in any form other than money. Except as otherwise provided in Section 10A-5A-11.14(c), a series may distribute an asset in kind if each member associated with the series receives a percentage of the asset in proportion to the member’s share of distributions from the series.\n(4) If a member associated with a series becomes entitled to receive a distribution from the series, the member has the status of, and is entitled to all remedies available to, a creditor of the series with respect to the distribution.\n(c) Subsection (a) shall not apply to a distribution made by a series.","path":["Title 10A Alabama Business and Nonprofit Entities Code.","Chapter 5A Alabama Limited Liability Company Law of 2014.","Article 4 Relations of Members to Each Other and to the Limited Liability Company."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=10A-5A-4.05","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:53Z","sha256":"4b0090eb86cd9d8bcf636fa1daf985ff40db65b1feb0b8b8129f3536b65dd882","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-10a-5a-4.04","next":"us-al/ala.-code-10a-5a-4.06"},"notice":"GroundRules: Original legal text. Not legal advice."}