Md. Code, Corporations and Associations § 4A-906
This is the official text of Md. Code, Corporations and Associations § 4A-906, part of Maryland’s Code, Corporations and Associations — governs the formation and operation of corporations, LLCs, and partnerships.
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§4A–906.
Official statutory text
On the winding up and termination of a limited liability company, the assets shall be distributed as follows:
(1) To creditors, including members who are creditors, to the extent permitted by law, in satisfaction of the liabilities of the limited liability company; and
(2) Unless otherwise agreed, to the members in proportion to their respective capital contribution values, after the capital contribution values are adjusted by:
(i) Adding to the members’ capital contribution values their respective shares of the profits of the limited liability company; and
(ii) Deducting from the members’ capital contribution values their respective shares of the losses of the limited liability company and all distributions previously received by the members.
(1) To creditors, including members who are creditors, to the extent permitted by law, in satisfaction of the liabilities of the limited liability company; and
(2) Unless otherwise agreed, to the members in proportion to their respective capital contribution values, after the capital contribution values are adjusted by:
(i) Adding to the members’ capital contribution values their respective shares of the profits of the limited liability company; and
(ii) Deducting from the members’ capital contribution values their respective shares of the losses of the limited liability company and all distributions previously received by the members.
Status: in_force · Read it on the official government site
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