Title 16, Title 16: Corporations

16-20-107. Operating agreement -- Scope, functions, and limitations. (1) Except as otherwise provided in Subsectionsand, the operating agreement governs: (3) (4) relations among the members as members and between the members and the limited liability company; the rights and dutie…

16-20-108. Operating agreement -- Effect on limited liability company and person becoming member -- Preformation agreement. (1) A limited liability company is bound by and may enforce the operating agreement, whether or not the limited liability company has itself manifested asse…

16-20-109. Operating agreement -- Effect on third parties and relationship to records effective on behalf of limited liability company. (1) An operating agreement may specify that the operating agreement's amendment requires the approval of a person that is not a party to the ope…

16-20-110. Reservation of power to amend or repeal. The Legislature of this state has power to amend or repeal all or part of this chapter at any time, and all domestic and foreign limited liability companies subject to this chapter are governed by the amendment or repeal.

16-20-1101. Application of this part. If a conflict arises between this part and another provision of this chapter, this part controls.

16-20-1102. Requirements. (1) To be a low-profit limited liability company, a limited liability company shall: contain in its name the abbreviation "L3C" or "l3c"; state in its certificate of organization that it is a low-profit limited liability company; organize under this chap…

16-20-1103. Ceasing to be a low-profit limited liability company. (1) If a limited liability company that is a low-profit limited liability company at its formation at any time ceases to meet a requirement to be a low-profit limited liability company under Section, the limited li…

16-20-1104. Merger, interest exchange, conversion, or domestication of a low-profit limited liability company. A low-profit limited liability company may engage in a merger, interest exchange, conversion, or domestication under Chapter 1a, Part 7, Merger, Chapter 1a, Part 8, Inte…

16-20-111. Provisions Applicable to All Business Entities applicable. Chapter 1a, Provisions Applicable to All Business Entities, applies to the provisions of this chapter.

16-20-1201. Uniformity of application and construction. In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to this chapter's subject matter among states that enact the uniform act upon which this chapter …

16-20-1202. Severability clause. If any provision of this chapter or this chapter's application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision o…

16-20-1203. Relation to Electronic Signatures in Global and National Commerce Act. This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or supersede Section 101(c) of …

16-20-1204. Savings clause. This chapter does not affect an action commenced, proceeding brought, or right accrued before this chapter takes effect.

16-20-1205. Application to existing relationships. (1) Before January 1, 2016, this chapter governs only: a limited liability company formed on or after January 1, 2014; and except as otherwise provided in Subsection, a limited liability company formed before January 1, 2014, whi…

16-20-201. Formation of limited liability company -- Certificate of organization. (1) One or more persons may act as organizers to form a limited liability company by delivering to the division for filing a certificate of organization. (2) A certificate of organization must state…

16-20-202. Amendment or restatement of certificate of organization. (1) A certificate of organization may be amended or restated at any time, except that in accordance with Section, a low-profit limited liability company shall amend the low-profit limited liability company's cert…

16-20-301. No agency powers of member as member. (1) A member is not an agent of a limited liability company solely by reason of being a member. (2) A person's status as a member does not prevent or restrict law other than this chapter from imposing liability on a limited liabili…

16-20-302. Statement of authority. (1) A limited liability company may deliver to the division for filing a statement of authority. The statement: must include the name of the limited liability company and the street and mailing addresses of the limited liability company's regist…

16-20-303. Statement of denial. A person named in a filed statement of authority granting that person authority may deliver to the division for filing a statement of denial that: (1) provides the name of the limited liability company and the caption of the statement of authority …

16-20-304. Liability of members and managers. (1) A debt, obligation, or other liability of a limited liability company is solely the debt, obligation, or other liability of the limited liability company. A member or manager is not personally liable, directly or indirectly, by wa…

16-20-401. Becoming a member. (1) If a limited liability company is to have only one member upon formation, the person becomes a member as agreed by that person and the organizer of the limited liability company. That person and the organizer may be, but need not be, different pe…

16-20-402. Form of contribution. A contribution may consist of property transferred to, services performed for, or another benefit provided to the limited liability company or an agreement to transfer property to, perform services for, or provide another benefit to the company.

16-20-403. Liability for contributions. (1) A person's obligation to make a contribution to a limited liability company is not excused by the person's death, disability, or other inability to perform personally. (2) If a person does not fulfill an obligation to make a contributio…

16-20-404. Sharing of and right to distributions before dissolution. (1) Any distributions made by a limited liability company before the limited liability company's dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the…

16-20-405. Limitation on distributions. (1) A limited liability company may not make a distribution, including a distribution under Section, if after the distribution: 16-20-708 the limited liability company would not be able to pay the limited liability company's debts as the de…

16-20-406. Liability for improper distributions. (1) Except as otherwise provided in Subsection, if a member of a member-managed limited liability company or manager of a manager-managed limited liability company consents to a distribution made in violation of Sectionand in conse…

16-20-407. Management of limited liability company. (1) A limited liability company is a member-managed limited liability company unless the operating agreement: expressly provides that: the limited liability company is or will be "manager-managed"; the limited liability company …

16-20-408. Reimbursement, indemnification, advancement, and insurance. (1) A limited liability company shall reimburse a member of a member-managed limited liability company or the manager of a manager-managed limited liability company for any payment made by the member or manage…

16-20-409. Standards of conduct for members and managers. (1) A member of a member-managed limited liability company owes to the limited liability company and, subject to Subsection, the other members the duties of loyalty and care stated in Subsectionsand. 16-20-801(1) (2) (3) (…

16-20-410. Rights of member, manager, and person dissociated as member to information. (1) In a member-managed limited liability company, the following rules apply: On reasonable notice, a member may inspect and copy during regular business hours, at a reasonable location specifi…

16-20-501. Nature of transferable interest. A transferable interest is personal property.

16-20-502. Transfer of transferable interest. (1) Subject to Subsection, a transfer, in whole or in part, of a transferable interest: 16-20-503(6) is permissible; does not by itself cause a member's dissociation or a dissolution and winding up of the limited liability company's a…

16-20-503. Charging order. (1) On application by a judgment creditor of a member or transferee, a court may enter a charging order against the transferable interest of the judgment debtor for the unsatisfied amount of the judgment. Except as otherwise provided in Subsection, a ch…

16-20-504. Power of legal representative of deceased member. If a member dies, the deceased member's legal representative may exercise: (1) the rights of a transferee provided in Subsection; and 16-20-502(3) (2) for the purposes of settling the estate, the rights the deceased mem…

16-20-601. Power to dissociate as member -- Wrongful dissociation. (1) A person has the power to dissociate as a member at any time, rightfully or wrongfully, by withdrawing as a member by express will under Subsection. 16-20-602(1) (2) A person's dissociation as a member is wron…

16-20-602. Events causing dissociation. A person is dissociated as a member when: (1) the limited liability company has notice of the person's express will to withdraw as a member, but, if the person specified a withdrawal date later than the date the limited liability company ha…

16-20-603. Effect of dissociation. (1) If a person is dissociated as a member: the person's right to participate as a member in the management and conduct of the company's activities and affairs terminates; if the limited liability company is member-managed, the person's duties a…

16-20-701. Events causing dissolution. A limited liability company is dissolved, and the limited liability company's activities and affairs must be wound up, upon the occurrence of any of the following: (1) an event, circumstance, or date that the certificate of organization or o…

16-20-702. Election to purchase in lieu of dissolution. (1) In a proceeding under Subsectionto dissolve a limited liability company, the limited liability company may elect or, if the limited liability company fails to elect, one or more members may elect to purchase the interest…

16-20-703. Winding up. (1) A dissolved limited liability company shall wind up the limited liability company's activities and affairs. Except as otherwise provided in Section, the limited liability company only continues after dissolution for the purpose of winding up. 16-20-704 …

16-20-704. Rescinding dissolution. (1) A limited liability company may rescind the limited liability company's dissolution, unless a statement of termination applicable to the limited liability company is effective, a court has entered an order under Subsectionordissolving the li…

16-20-705. Known claims against dissolved limited liability company. (1) A dissolved limited liability company in winding up may dispose of the known claims against it by following the procedures described in this section. (2) A limited liability company in winding up, electing t…

16-20-706. Other claims against dissolved limited liability company. (1) A dissolved limited liability company may publish notice of the dissolved limited liability company dissolution and request persons having claims against the limited liability company to present them in acco…

16-20-707. Court proceedings. (1) A dissolved limited liability company that has published a notice under Sectionmay petition a court with jurisdiction under, for a determination of the amount and form of security to be provided for payment of claims that are contingent, have not…

16-20-708. Disposition of assets in winding up. (1) In winding up its activities and affairs, a limited liability company shall apply the limited liability company's assets to discharge the limited liability company's obligations to creditors, including members that are creditors…

16-20-801. Direct action by member. (1) Subject to Subsection, a member may maintain a direct action against another member, a manager, or the limited liability company to enforce the member's rights and otherwise protect the member's interests, including rights and interests und…