183.0704 History
History: 1993 a. 112.
183.0704 Annotation
When Does a Member's Interest in an LLC Become a Security? Briska. Wis. Law. Sept. 1994.
183.0705
183.0705
Rights of judgment creditor. On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the member's limited liability company interest with payment of the unsatisfied amount of the judgment. To the extent so charged, the judgment creditor has only the rights of an assignee of the member's limited liability company interest. This section does not deprive any member of the benefit of any exemption laws applicable to the limited liability company interest.
183.0705 History
History: 1993 a. 112.
183.0706
183.0706
Right of assignee to become a member. 183.0706(1)(1) Unless otherwise provided in an operating agreement, an assignee of a limited liability company interest may become a member only if the other members unanimously consent. The consent of a member may be evidenced in any manner specified in an operating agreement, but in the absence of such specification, consent shall be evidenced by a written instrument that is dated and signed by the member.
183.0706(2)(a)(a) An assignee of a limited liability company interest who becomes a member has, to the extent assigned, the rights and powers, and is subject to the restrictions and liabilities, of the assignor under an operating agreement and this chapter. An assignee who becomes a member is liable for any of the assignor's obligations under an operating agreement and this chapter to the limited liability company.
183.0706(2)(b)
(b) Notwithstanding
par. (a), an assignee is not obligated for liabilities of which the assignee had no knowledge at the time the assignee became a member or which could not be ascertained from any written records of the limited liability company kept under
s. 183.0405 (1).
183.0706(3)
(3) Unless otherwise provided in an operating agreement, an assignor of a limited liability company interest is not released from any liability of the assignor to the limited liability company under this chapter without the written consent of all of the members, whether or not the assignee becomes a member.
183.0706 History
History: 1993 a. 112;
1995 a. 400.
183.0707
183.0707
Powers of legal representative. If a member who is an individual dies or is adjudged to be incompetent to manage his or her person or estate by a court of competent jurisdiction, the member's personal representative, administrator, guardian, conservator, trustee or other legal representative shall have all of the rights of an assignee of the member's interest. If a member is a corporation, trust, partnership, limited liability company or other entity and is dissolved or terminated, its legal representative or successor shall have all of the rights of an assignee of the member's interest.
183.0707 History
History: 1993 a. 112;
1995 a. 400.
ADMISSION AND DISSOCIATION OF MEMBERS
183.0801(1)
(1) In connection with the formation of a limited liability company, a person acquiring a limited liability company interest is admitted as a member of the limited liability company upon the later of the following to occur:
183.0801(1)(b)
(b) The time provided in and upon compliance with an operating agreement or, if the limited liability company does not have an operating agreement or an operating agreement does not so provide, on the effective date of the person's admission as reflected in the records of the limited liability company maintained under
s. 183.0405 (1).
183.0801(2)
(2) After the formation of a limited liability company, a person acquiring a limited liability company interest is admitted as a member of the limited liability company:
183.0801(2)(a)
(a) In the case of a person acquiring a limited liability company interest directly from the limited liability company, at the time provided in and upon compliance with an operating agreement or, if the limited liability company does not have an operating agreement or an operating agreement does not so provide, upon the consent of all members and on the effective date of the person's admission as reflected in the records of the limited liability company maintained under
s. 183.0405 (1).
183.0801(2)(b)
(b) In the case of an assignee of a limited liability company interest, as provided in
s. 183.0706 (1) and at the time provided in and upon compliance with an operating agreement or, if the limited liability company does not have an operating agreement or an operating agreement does not so provide, on the effective date of the person's admission as reflected in the records of the limited liability company maintained under
s. 183.0405 (1).
183.0801 History
History: 1993 a. 112;
1995 a. 400.
183.0802
183.0802
Events of dissociation. 183.0802(1)
(1) A person ceases to be a member of a limited liability company upon the occurrence of, and at the time of, any of the following events:
183.0802(1)(a)
(a) The member withdraws by voluntary act from the limited liability company under
sub. (3).
183.0802(1)(b)
(b) The member assigns all of the member's interest in the limited liability company and one or more assignees are admitted as members under
s. 183.0706 (1).
183.0802(1)(c)
(c) The member is removed as a member in accordance with an operating agreement.
183.0802(1)(cm)
(cm) Unless otherwise provided in an operating agreement, the member assigns all of the member's interest in the limited liability company if the member is removed by the affirmative vote of the members as determined under
s. 183.0404 (1) (a), except that the vote of the member who assigns all of the member's interest shall be excluded.
183.0802(1)(d)
(d) Unless otherwise provided in an operating agreement or by the written consent of all members at the time of the event, the member does any of the following:
183.0802(1)(d)3.
3. Becomes the subject of an order for relief under the federal bankruptcy laws.
183.0802(1)(d)4.
4. Files a petition or answer seeking for the member any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation.
183.0802(1)(d)5.
5. Files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against the member in any proceeding under
subd. 4.
183.0802(1)(d)6.
6. Seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator of the member or of all or any substantial part of the member's properties.
183.0802(1)(e)
(e) Unless otherwise provided in an operating agreement or by the written consent of all members:
183.0802(1)(e)1.
1. At the expiration of 120 days after the commencement of any involuntary proceeding against the member seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation, if the proceeding has not been dismissed.
183.0802(1)(e)2.
2. At the expiration of 120 days after the appointment without the member's consent or acquiescence of a trustee, receiver or liquidator of the member or of all or any substantial part of the member's properties, if the appointment is not vacated or stayed, or at the expiration of 120 days after the expiration of any stay, if the appointment is not vacated.
183.0802(1)(f)
(f) Unless otherwise provided in an operating agreement or by the written consent of all members, if the member is an individual:
183.0802(1)(f)2.
2. The entry of an order by a court of competent jurisdiction adjudicating the member incompetent to manage the member's person or estate.
183.0802(1)(g)
(g) Unless otherwise provided in an operating agreement or by the written consent of all members at the time, if the member is a trust or is acting as a member by virtue of being a trustee of a trust, the termination of the trust, but not merely the substitution of a new trustee.
183.0802(1)(h)
(h) Unless otherwise provided in an operating agreement or by the written consent of all members at the time, if the member is a separate domestic or foreign limited liability company, the dissolution and commencement of winding up of the separate domestic or foreign limited liability company.
183.0802(1)(i)
(i) Unless otherwise provided in an operating agreement or by the written consent of all members at the time, if the member is a corporation, the filing of articles of dissolution for the corporation or the revocation of its charter and the lapse of the time provided by the laws of the state of incorporation without a reinstatement of its charter.
183.0802(1)(j)
(j) Unless otherwise provided in an operating agreement or by the written consent of all members at the time, if the member is an estate, the distribution by the fiduciary of the estate's entire interest in the limited liability company.
183.0802(1)(k)
(k) Unless otherwise provided in an operating agreement or by the written consent of all members at the time, if the member is a partnership or other entity not described under
pars. (g) to
(j), the dissolution of the partnership or entity.
183.0802(2)
(2) The members may provide in an operating agreement for other events the occurrence of which result in a person ceasing to be a member of the limited liability company.
183.0802(3)(a)(a) Except as provided in
par. (b), unless an operating agreement provides that a member does not have the power to withdraw by voluntary act from a limited liability company, the member may do so at any time by giving written notice to the other members, or on any other terms as are provided in an operating agreement. If the member has the power to withdraw but the withdrawal is a breach of an operating agreement or the withdrawal occurs as a result of otherwise wrongful conduct of the member, the limited liability company may recover from the withdrawing member damages for breach of the operating agreement or as a result of the wrongful conduct and may offset the damages against the amount otherwise distributable to the member, in addition to pursuing any remedies provided for in an operating agreement or otherwise available under applicable law. Unless otherwise provided in an operating agreement, in the case of a limited liability company for a definite term or particular undertaking, a withdrawal by a member before the expiration of that term or completion of that undertaking is a breach of the operating agreement.
183.0802(3)(b)
(b) If a member acquired an interest in a limited liability company for no or nominal consideration, the member may withdraw from the limited liability company only in accordance with the operating agreement and only at the time or upon the occurrence of an event specified in the operating agreement. If the operating agreement does not specify the time or the event upon the occurrence of which the member may withdraw, a member who acquired an interest in the limited liability company for no or nominal consideration may not withdraw prior to the time for the dissolution and commencement of winding up of the limited liability company without the written consent of all members of the limited liability company.
DISSOLUTION
183.0901
183.0901
Dissolution. A limited liability company is dissolved and its affairs shall be wound up upon the happening of the first of the following:
183.0901(1)
(1) The occurrence of events specified in an operating agreement.
183.0901(4)
(4) An event of dissociation of a member, unless any of the following applies:
183.0901(4)(a)
(a) The business of the limited liability company is continued by the consent of all of the remaining members within 90 days after the date on which the event occurs at which time the remaining members may agree to the admission of one or more additional members or to the appointment of one or more additional managers, or both.
183.0901 History
History: 1993 a. 112;
1995 a. 400.
183.0902
183.0902
Judicial dissolution. In a proceeding by or for a member, the circuit court for the county where the limited liability company's principal office, or, if none in this state, its registered office, is or was last located may order dissolution of a limited liability company if any of the following is established:
183.0902(1)
(1) That it is not reasonably practicable to carry on the business of the limited liability company.
183.0902(2)
(2) That the limited liability company is not acting in conformity with an operating agreement.
183.0902(3)
(3) That one or more managers are acting or will act in a manner that is illegal, oppressive or fraudulent.
183.0902(4)
(4) That one or more members in control of the limited liability company are acting or will act in a manner that is illegal, oppressive or fraudulent.
183.0902(5)
(5) That limited liability company assets are being misapplied or wasted.
183.0902 History
History: 1993 a. 112.
183.0903
183.0903
Winding up. A dissolved limited liability company continues its legal existence but may not carry on any business except that which is appropriate to wind up and liquidate its business. Unless otherwise provided in an operating agreement:
183.0903(1)
(1) The business of the limited liability company may be wound up by any of the following:
183.0903(1)(a)
(a) The members or managers who have authority under
s. 183.0401 to manage the limited liability company before dissolution.
183.0903(1)(b)
(b) If one or more of the members or managers who have authority to manage the limited liability company have engaged in wrongful conduct, or upon other cause shown, on application of any member or any member's legal representative or assignee, the circuit court for the county where the limited liability company's principal office, or, if none in this state, its registered office, is or was last located.
183.0903(2)
(2) The persons winding up the business of the limited liability company may do all of the following in the name of and on behalf of the limited liability company:
183.0903(2)(c)
(c) Take any action necessary to settle and close the business of the limited liability company.
183.0903(2)(d)
(d) Dispose of and transfer the property of the limited liability company.
183.0903(2)(e)
(e) Discharge or make provision for discharging the liabilities of the limited liability company.
183.0903(2)(f)
(f) Distribute to the members any remaining assets of the limited liability company.
183.0903(3)
(3) Dissolution of a limited liability company does not do any of the following:
183.0903(3)(a)
(a) Transfer title to the limited liability company's property.
183.0903(3)(b)
(b) Prevent transfer of all or part of a member's interest.
183.0903(3)(c)
(c) Prevent commencement of a civil, criminal, administrative or investigatory proceeding by or against the limited liability company.
183.0903(3)(d)
(d) Abate or suspend a civil, criminal, administrative or investigatory proceeding pending by or against the limited liability company at the time of dissolution.
183.0903(3)(e)
(e) Terminate the authority of the registered agent of the limited liability company.
183.0903 History
History: 1993 a. 112.
183.0904
183.0904
Agency power of managers or members after dissolution.
