N.D. Cent. Code § 10-32.1-30
This is the official text of N.D. Cent. Code § 10-32.1-30, part of North Dakota’s Cent. Code — part of the compiled statutory law of North Dakota, published by the state as "Cent. Code." Browse the sections below, each linked to its official government source.
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10-32.1-30. Sharing of and right to distributions before dissolution
Official statutory text
10-32.1-30. Sharing of and right to distributions before dissolution
1. Except as provided in subsection 5 and subject to paragraphs 1 through 4 of
subdivision c of subsection 4 of section 10-32.1-05, any distributions made by a limited
liability company before its dissolution and winding up must be in equal shares among
members and dissociated members, except to the extent necessary to comply with
any transfer effective under section 10-32.1-44 and any charging order in effect under
section 10-32.1-45.
2. 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. The
dissociation of a person does not entitle the person to a distribution.
3. 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
section 10-32.1-54, a limited liability company may distribute an asset in kind 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 share of distributions of the person.
4. If a member or transferee becomes entitled to receive a distribution, then 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.
5. Notwithstanding subsection 1, subject to paragraphs 1 through 4 of subdivision c of
subsection 4 of section 10-32.1-05 and unless otherwise provided in the articles of
organization or in an operating agreement, for a limited liability company created after
July 31, 2017, any distributions among members and dissociated members made by a
limited liability company before its dissolution and winding up must be in proportion to
the value of the contributions of the members, except to the extent necessary to
comply with any transfer effective under section 10-32.1-44 and any charging order in
effect under section 10-32.1-45.
1. Except as provided in subsection 5 and subject to paragraphs 1 through 4 of
subdivision c of subsection 4 of section 10-32.1-05, any distributions made by a limited
liability company before its dissolution and winding up must be in equal shares among
members and dissociated members, except to the extent necessary to comply with
any transfer effective under section 10-32.1-44 and any charging order in effect under
section 10-32.1-45.
2. 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. The
dissociation of a person does not entitle the person to a distribution.
3. 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
section 10-32.1-54, a limited liability company may distribute an asset in kind 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 share of distributions of the person.
4. If a member or transferee becomes entitled to receive a distribution, then 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.
5. Notwithstanding subsection 1, subject to paragraphs 1 through 4 of subdivision c of
subsection 4 of section 10-32.1-05 and unless otherwise provided in the articles of
organization or in an operating agreement, for a limited liability company created after
July 31, 2017, any distributions among members and dissociated members made by a
limited liability company before its dissolution and winding up must be in proportion to
the value of the contributions of the members, except to the extent necessary to
comply with any transfer effective under section 10-32.1-44 and any charging order in
effect under section 10-32.1-45.
Status: in_force · Read it on the official government site
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