Nature of distributional interest
(1) A member is not a co-owner of, and does not have a transferable interest in, property of a limited liability company.
(2) A member's distributional interest in a limited liability company is personal property and, subject to the provisions of 35-8-707, may be transferred in whole or in part.
(3) An operating agreement may provide that a member's distributional interest may be evidenced by a certificate of the interest issued by the limited liability company and, subject to the provisions of 35-8-707, may also provide for the transfer of any interest represented by the certificate.
| EnactedEn. SectionSec. 40, ChapterCh. 120, Laws ofL. 1993 |
| AmendedAmd. SectionSec. 26, ChapterCh. 302, Laws ofL. 1999 (SB 435 - Waterman, Mignon (D) SD 26) |