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The Vermont Statutes Online
Title
11
:
Corporations, Partnerships and Associations
Chapter
021
:
LIMITED LIABILITY COMPANIES
Subchapter
007
:
MEMBER'S DISSOCIATION WHEN BUSINESS NOT WOUND UP
[Section 3092 repealed effective July 1, 2016.]
[Section 3092 repealed effective July 1,
2016.]
§
3092. Court action to determine fair value of distributional interest
(a) In an action
brought to determine the fair value of a distributional interest in a limited
liability company, the court shall:
(1) determine
the fair value of the interest, considering among other relevant evidence the
going concern value of the company, any agreement among some or all of the
members fixing the price or specifying a formula for determining value of
distributional interests for any purpose, the recommendations of any appraiser
appointed by the court and any legal constraints on the company's ability to
purchase the interest;
(2) specify the
terms of the purchase, including, if appropriate, terms for installment
payments, subordination of the purchase obligation to the rights of the
company's other creditors, security for a deferred purchase price and a
covenant not to compete or other restriction on a dissociated member; and
(3) require the
dissociated member or owner of the distributional interest to deliver an
assignment of the interest to the purchaser upon receipt of the purchase price
or the first installment of the purchase price.
(b) After an
order to purchase is entered, a party may petition the court to modify the
terms of the purchase and the court may do so if it finds that changes in the
financial or legal ability of the limited liability company or other purchaser
to complete the purchase justify a modification.
(c) After the
dissociated member or owner of the distributional interest delivers the
assignment, the person has no further claim against the company, its members,
officers or managers, if any, other than a claim to any unpaid balance of the
purchase price and a claim under any agreement with the company or the
remaining members that is not terminated by the court.
(d) If the
purchase is not completed in accordance with the specified terms, the limited
liability company is to be dissolved upon application under subdivision
3101(5)(D) of this title. If a limited liability company is so dissolved, the
dissociated member or owner of the distributional interest has the same rights
and priorities in the company's assets as if the sale had not been ordered.
(e) If the court
finds that a party to the proceeding acted arbitrarily, vexatiously or not in
good faith, it may award one or more other parties their reasonable expenses,
including attorney's fees and the expenses of appraisers or other experts,
incurred in the proceeding. The finding may be based on the company's failure
to comply with subsection 3091(b) of this title.
(f) Interest
shall accrue and be paid on the amount awarded from the date determined under
subsection 3091(a) of this title to the date of payment. (Added 1995, No. 179
(Adj. Sess.), § 4.)