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The Vermont Statutes Online
Title
11
:
Corporations, Partnerships and Associations
Chapter
025
:
LIMITED LIABILITY COMPANIES
Subchapter
007
:
WINDING UP OF COMPANY BUSINESS
§
4103. Right to wind up limited liability company's business
(a) After
dissolution, a member may participate in winding up a limited liability
company's business, but on application of any member, member's legal
representative, or transferee, the Superior Court, for good cause shown, may
order judicial supervision of the winding up.
(b) In winding
up its activities, a limited liability company:
(1) shall
discharge the company's debts, obligations, or other liabilities, settle and
close the company's activities, and marshal and distribute the assets of the
company; and
(2) may:
(A) deliver to
the Secretary of State for filing a statement of dissolution stating the name
of the company and that the company is dissolved;
(B) preserve the
company activities and property as a going concern for a reasonable time;
(C) prosecute
and defend actions and proceedings, whether civil, criminal, or administrative;
(D) transfer the
company's property;
(E) settle
disputes by mediation or arbitration; and
(F) perform other
acts necessary or appropriate to the winding up.
(c) If a
dissolved limited liability company has no members, the legal representative of
the last person to have been a member may wind up the activities of the
company. If the person does so, the person has the powers of a sole manager
under subsection 4054(c) of this title and is deemed to be a manager for the
purposes of subdivision 4042(a)(2) of this title.
(d)(1) If the
legal representative under subsection (c) of this section declines or fails to
wind up the company's activities, a person may be appointed to do so by the
consent of transferees who own a majority of the rights to receive
distributions as transferees at the time the consent is to be effective.
(2) A person
appointed under this subsection:
(A) has the
powers of a sole manager under subsection 4054(c) of this title and is deemed
to be a manager for purposes of subdivision 4042(a)(2) of this title; and
(B) shall
promptly deliver to the Secretary of State for filing an amendment to the company's
certificate of organization to:
(i) state that
the company has no members;
(ii) state that
the person has been appointed pursuant to this subsection (d) to wind up the
company; and
(iii) provide
the street and mailing addresses of the person.
(e) The Superior
Court may order judicial supervision of the winding up of a dissolved limited
liability company, including the appointment of a person to wind up the
company's activities:
(1) on
application of a member, if the applicant establishes good cause;
(2) on the
application of a transferee, if:
(A) the company
does not have any members;
(B) the legal
representative of the last person to have been a member declines or fails to
wind up the company's activities; and
(C) within a
reasonable time following the dissolution, a person has not been appointed
pursuant to subsection (c) of this section; or
(3) in
connection with a proceeding under subdivision 4101(a)(4) or (5) of this title.
(Added 2015, No. 17, § 2.)