{"data":{"id":"us-ar/ark.-code-ann.-4-38-404","jurisdiction":"us-ar","citation":"Ark. Code Ann. § 4-38-404","heading":"Sharing of and right to distributions before dissolution","body":"(a) Any distribution made by a limited liability company before its dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the extent necessary to comply with a transfer effective under § 4-38-502 or charging order in effect under § 4-38-503 .\n\n(b) A person has a right to a distribution before the dissolution and winding up of a limited liability company only if the company decides to make an interim distribution. A person's dissociation does not entitle the person to a distribution.\n\n(c) A person does not have a right to demand or receive a distribution from a limited liability company in any form other than money. Except as otherwise provided in § 4-38-707(d) , a company may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person's share of distributions.\n\n(d) If a member or transferee becomes entitled to receive a distribution, the member or transferee has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution. However, the company's obligation to make a distribution is subject to offset for any amount owed to the company by the member or a person dissociated as a member on whose account the distribution is made.","path":["AR Code","Title 4","Chapter 38","Subchapter 4"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_ar_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:41Z","sha256":"07fca64855b39ee5a4d58ed3938cc3e3e764cc8ea7a36bdfb389fff0c065bd68","source_id":"us-ar","stale":false,"prev":"us-ar/ark.-code-ann.-4-38-403","next":"us-ar/ark.-code-ann.-4-38-405"},"notice":"GroundRules: Original legal text. Not legal advice."}