Texas Business Organizations Code

§ 101.110 — RIGHTS AND LIABILITIES OF ASSIGNEE OF MEMBERSHIP INTEREST AFTER BECOMING MEMBER

BO § 101.110Title 3. LIMITED LIABILITY COMPANIES · Ch. 101. LIMITED LIABILITY COMPANIES · Art. C. MEMBERSHIP

Statute text

(a)An assignee of a membership interest in a limited liability company, after becoming a member of the company, is:

(1)entitled, to the extent assigned, to the same rights and powers granted or provided to a member of the company by the company agreement or this code;

(2)subject to the same restrictions and liabilities placed or imposed on a member of the company by the company agreement or this code; and

(3)except as provided by Subsection (b), liable for the assignor's obligation to make contributions to the company.

(b)An assignee of a membership interest in a limited liability company, after becoming a member of the company, is not obligated for a liability of the assignor that:

(1)the assignee did not have knowledge of on the date the assignee became a member of the company; and

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Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.