Dissociated Member's Power to Bind Limited Liability Company

Dissociated Member’s Power to Bind Limited Liability Company. For two years after a member dissociates without the dissociation resulting in a dissolution and winding up of a limited liability company’s business, the company, including a surviving company under Chapter 9, is bound by an act of the dissociated member which would have bound the company under section 4841 before dissociation only if at the time of entering into the transaction the other party: (1) Reasonably believed that the dissociated member was then a member; (2) Did not have notice of the member’s dissociation; and (3) Is not deemed to have had notice under section 4894. Source: PL 14-11, § 2 (703), modified. Commission Comment: See the comment to 4 CMC § 4801 regarding PL 14-11.