35-8-503. Sharing of profits and losses. (1) Unless otherwise provided in the articles of organization or a written operating agreement, each member must be repaid that member's contributions to capital and share equally in the profits, losses, and surpluses remaining after all liabilities, including those to members, are satisfied.
(2) A distribution of the contributions and profits of a series of members of a limited liability company may not be made if, after giving the distribution effect:
(a) the limited liability company would not be able to pay the debts of the series of members from assets of the series of members as debts of the series become due in the usual course of business; or
(b) except as otherwise specifically permitted by the articles of organization or operating agreement, the total assets of the series of members would be less than the sum of the total liabilities of the series.
History: En. Sec. 31, Ch. 120, L. 1993; amd. Sec. 9, Ch. 183, L. 2013.
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