The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
005
:
TRANSFEREES AND CREDITORS OF MEMBER
(Cite as: 11 V.S.A. § 4072)
-
§ 4072. Transfer of distributional interest
(a) A transfer, in whole or in part, of a distributional interest:
(1) is permissible;
(2) does not by itself cause a member’s dissociation or a dissolution and winding up of
the company’s activities; and
(3) subject to section 4075 of this title, does not entitle the transferee to:
(A) become or to exercise any rights of a member:
(B) participate in the management or conduct of the company’s activities; or
(C) except as otherwise provided in subsection 4073(d) of this title, have access to records or other information concerning the company’s activities.
(b) A transfer of a distributional interest entitles the transferee to receive, in accordance
with the transfer, the distributions to which the transferor would otherwise be entitled
with respect to the interest.
(c) Except as otherwise provided in subdivision 4081(4)(B) of this title, if a member transfers a distributional interest, the transferor retains the rights
of a member other than the distributional interest transferred and retains all duties
and obligations of a member.
(d) A transfer of a distributional interest in violation of a restriction on transfer
contained in the operating agreement is ineffective if the intended transferee has
knowledge or notice of the restriction at the time of transfer. (Added 2015, No. 17, § 2.)