183.0502 Transfer of transferable interest. (1) Subject to s. 183.0503 (6), all of the following apply to a transfer, in whole or in part, of a transferable interest: (a) It is permissible. (b) It does not by itself cause a member’s dissociation or a dissolution and winding up of the limited liability company’s activities and affairs. (c) Subject to s. 183.0504, it does not entitle the transferee to any of the following: 1. Participate in the management or conduct of the company’s activities and affairs. 2. Except as otherwise provided in sub. (3) and s. 183.0410 (3), have access to records or other information concerning the company’s activities and affairs. (2) A transferee has the right to receive, in accordance with the transfer, distributions to which the transferor would otherwise be entitled. (3) In a dissolution and winding up of a limited liability company, a transferee is entitled to an account of the company’s transactions only from the date of dissolution. (4) A transferable interest may be evidenced by a certificate of the interest issued by a limited liability company in a record, and, subject to this section, the interest represented by the certificate may be transferred by a transfer of the certificate. (5) A limited liability company need not give effect to a transferee’s rights under this section until the company knows or has notice of the transfer. (6) A transfer of a transferable interest in violation of a restriction on transfer contained in the operating agreement is ineffective if the intended transferee knows or has notice of the restriction at the time of the intended transfer. (7) Except as otherwise provided in s. 183.0602 (5) (b), if a member transfers a transferable interest and the transferee does not become a member with respect to the transferred interest, the transferor retains the rights of a member other than the interest in distributions transferred and retains all the duties and obligations of a member. (8) If a member transfers a transferable interest to a person that becomes a member with respect to the transferred interest, the transferee is liable for the member’s obligations under ss. 183.0403 and 183.0406 known to the transferee when the transferee becomes a member.
ability company or one or more members whose transferable interests are not subject to the charging order may pay to the judgment creditor the full amount due under the judgment and thereby succeed to the rights of the judgment creditor, including the charging order. (6) If a court orders foreclosure of a charging order lien against the sole member of a limited liability company, all of the following apply: (a) The court shall confirm the sale. (b) The purchaser at the sale obtains the member’s entire interest, not only the member’s transferable interest. (c) The purchaser thereby becomes a member. (d) The person whose interest was subject to the foreclosed charging order is dissociated as a member. (7) This chapter does not deprive any member or transferee of the benefit of any exemption law applicable to the transferable interest of the member or transferee. (8) This section provides the exclusive remedy by which a person seeking to enforce a judgment against a member or transferee may, in the capacity of judgment creditor, satisfy the judgment from the judgment debtor’s transferable interest. History: 2021 a. 258.