FIRSTREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
SENATESUBSTITUTEFOR
SENATECOMMITTEESUBSTITUTEFOR
SENATEBILLNOS.3&69
102NDGENERALASSEMBLY
0363H.06C DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections135.460,287.037,347.010,347.015,347.017,347.020,347.025,347.030,
347.033,347.035,347.037,347.039,347.041,347.043,347.045,347.047,347.048,
347.049,347.051,347.053,347.055,347.057,347.059,347.061,347.063,347.065,
347.067,347.069,347.071,347.073,347.075,347.077,347.079,347.081,347.083,
347.085,347.088,347.090,347.091,347.093,347.095,347.097,347.099,347.101,
347.103,347.105,347.107,347.109,347.111,347.113,347.115,347.117,347.119,
347.121,347.123,347.125,347.127,347.128,347.129,347.131,347.133,347.135,
347.137,347.139,347.141,347.143,347.145,347.147,347.149,347.151,347.153,
347.155,347.157,347.160,347.161,347.163,347.165,347.167,347.169,347.171,
347.173,347.175,347.177,347.179,347.181,347.183,347.185,347.186,347.187,
347.189,347.700,347.705,347.710,347.720,356.071,431.202,536.050,536.300,
536.303,536.305,536.310,536.315,536.323,536.325,and536.328,RSMo,andto
enactinlieuthereofonehundredthirty-sixnewsectionsrelatingtobusiness
organizations,withadelayedeffectivedateforacertainsection.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections135.460,287.037,347.010,347.015,347.017,347.020,347.025,
2347.030,347.033,347.035,347.037,347.039,347.041,347.043,347.045,347.047,347.048,
3347.049,347.051,347.053,347.055,347.057,347.059,347.061,347.063,347.065,347.067,
4347.069,347.071,347.073,347.075,347.077,347.079,347.081,347.083,347.085,347.088,
5347.090,347.091,347.093,347.095,347.097,347.099,347.101,347.103,347.105,347.107,
6347.109,347.111,347.113,347.115,347.117,347.119,347.121,347.123,347.125,347.127,
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 7347.128,347.129,347.131,347.133,347.135,347.137,347.139,347.141,347.143,347.145,
8347.147,347.149,347.151,347.153,347.155,347.157,347.160,347.161,347.163,347.165,
9347.167,347.169,347.171,347.173,347.175,347.177,347.179,347.181,347.183,347.185,
10347.186,347.187,347.189,347.700,347.705,347.710,347.720,356.071,431.202,536.050,
11536.300,536.303,536.305,536.310,536.315,536.323,536.325,and536.328,RSMo,are
12repealedandonehundredthirty-sixnewsectionsenactedinlieuthereof,tobeknownas
13sections34.195,135.460,287.037,347.700,347.705,347.710,347.720,347.1000,347.1002,
14347.1004,347.1006,347.1008,347.1010,347.1012,347.1014,347.1016,347.1018,
15347.1020,347.1022,347.1024,347.1026,347.1028,347.1030,347.1032,347.1034,
16347.1036,347.1038,347.1040,347.1042,347.1044,347.1046,347.1048,347.1050,
17347.1052,347.1054,347.1056,347.1058,347.1060,347.1062,347.1064,347.1066,
18347.1068,347.1070,347.1072,347.1074,347.1076,347.1078,347.1080,347.1082,
19347.1084,347.1086,347.1088,347.1090,347.1092,347.1094,347.1096,347.1098,
20347.1100,347.1102,347.1104,347.1106,347.1108,347.1110,347.1112,347.1114,
21347.1116,347.1118,347.1120,347.1122,347.1124,347.1126,347.1128,347.1130,
22347.1132,347.1134,347.1136,347.1138,347.1140,347.1142,347.1144,347.1146,
23347.1148,347.1150,347.1152,347.1154,347.1156,347.1158,347.1160,347.1162,
24347.1164,347.1166,347.1168,347.1170,347.1172,347.1174,347.1176,347.1178,
25347.1180,347.1182,347.1184,347.1186,347.1188,347.1190,347.1192,347.1194,
26347.1196,347.1198,347.1200,347.1202,347.1204,347.1206,347.1208,347.1210,
27347.1212,347.1214,347.1216,347.1218,347.1220,347.1222,347.1224,347.1226,
28347.1228,356.071,407.205,407.2110,431.202,536.050,536.300,620.3800,620.3900,
29620.3905,620.3910,620.3915,620.3920,620.3925,and620.3930,toreadasfollows:
34.195.1.Thissectionshallbeknownandmaybecitedasthe"Right-to-Start
2Act".
3 2.NolaterthanJune30,2025,andannuallythereafter,thecommissionerof
4administrationshallfileareportwiththegeneralassemblythatincludes,butisnot
5limitedto:
6 (1)Thenumberofcontractsawardedtobusinessesthathavebeeninoperation
7forlessthanthreeyears;
8 (2)Thepercentageofthenumberofcontractsawardedtobusinessesthathave
9beeninoperationforlessthanthreeyearscomparedtothetotalnumberofcontracts
10awarded;
11 (3)Thetotaldollaramountofallcontractsawardedtobusinessesthathavebeen
12inoperationforlessthanthreeyears;
HCSSSSCSSBs3&69 2 13 (4)Thepercentageofthetotaldollaramountofcontractsawardedtobusinesses
14thathavebeeninoperationforlessthanthreeyearscomparedtothetotaldollar
15amountofcontractsawarded;and
16 (5)Thenumberandtotaldollaramountofcontractsawardedtobusinesses
17ownedbyeachracialminoritygroup,assuchtermisdefinedinsection37.013,women-
18ownedbusinesses,andveteran-ownedbusinessescomparedtothetotalnumberand
19dollaramountofcontractsawarded.
20 3.Thecommissionerofadministration,inconjunctionwiththeofficeof
21entrepreneurshipundersection620.3800,shallproduceandfileareportwiththe
22generalassemblymakingrecommendationsonimprovingaccessandresourcesfornew
23Missouribusinessesthathavebeeninoperationforlessthanthreeyearsonorbefore
24January1,2025.Thereportshallalsoincluderecommendationsonimprovingaccess
25andresourcesfornewbusinessesownedbyaracialminoritygroup,assuchtermis
26definedinsection37.013,women-ownedbusinesses,andveteran-ownedMissouri
27businessesthathavebeeninoperationforlessthanthreeyearsonorbeforeJanuary1,
282025.
135.460.1.Thissectionandsections620.1100and620.1103shallbeknownand
2maybecitedasthe"YouthOpportunitiesandViolencePreventionAct".
3 2.Asusedinthissection,theterm"taxpayer"shallincludecorporationsasdefinedin
4section143.441or143.471,anycharitableorganizationwhichisexemptfromfederalincome
5taxandwhoseMissouriunrelatedbusinesstaxableincome,ifany,wouldbesubjecttothe
6stateincometaximposedunderchapter143,andindividuals,individualproprietorshipsand
7partnerships.
8 3.Ataxpayershallbeallowedataxcreditagainstthetaxotherwiseduepursuantto
9chapter143,excludingwithholdingtaximposedbysections143.191to143.265,chapter147,
10chapter148,orchapter153inanamountequaltothirtypercentforpropertycontributions
11andfiftypercentformonetarycontributionsoftheamountsuchtaxpayercontributedtothe
12programsdescribedinsubsection5ofthissection,nottoexceedtwohundredthousand
13dollarspertaxableyear,pertaxpayer;exceptasotherwiseprovidedinsubdivision(5)of
14subsection5ofthissection.Thedepartmentofeconomicdevelopmentshallprescribethe
15methodforclaimingthetaxcreditsallowedinthissection.Noruleorportionofarule
16promulgatedundertheauthorityofthissectionshallbecomeeffectiveunlessithasbeen
17promulgatedpursuanttotheprovisionsofchapter536.Allrulemakingauthoritydelegated
18priortoJune27,1997,isofnoforceandeffectandrepealed;however,nothinginthissection
19shallbeinterpretedtorepealoraffectthevalidityofanyrulefiledoradoptedpriortoJune27,
201997,ifsuchrulecompliedwiththeprovisionsofchapter536.Theprovisionsofthissection
21andchapter536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
HCSSSSCSSBs3&69 3 22pursuanttochapter536,includingtheabilitytoreview,todelaytheeffectivedate,orto
23disapproveandannularuleorportionofarule,aresubsequentlyheldunconstitutional,then
24thepurportedgrantofrulemakingauthorityandanyrulesoproposedandcontainedinthe
25orderofrulemakingshallbeinvalidandvoid.
26 4.Thetaxcreditsallowedbythissectionshallbeclaimedbythetaxpayertooffset
27thetaxesthatbecomedueinthetaxpayer'staxperiodinwhichthecontributionwasmade.
28Anytaxcreditnotusedinsuchtaxperiodmaybecarriedoverthenextfivesucceedingtax
29periods.
30 5.Thetaxcreditallowedbythissectionmayonlybeclaimedformonetaryor
31propertycontributionstopublicorprivateprogramsauthorizedtoparticipatepursuanttothis
32sectionbythedepartmentofeconomicdevelopmentandmaybeclaimedforthe
33development,establishment,implementation,operation,andexpansionofthefollowing
34activitiesandprograms:
35 (1)Anadopt-a-schoolprogram.Componentsoftheadopt-a-schoolprogramshall
36includedonationsforschoolactivities,seminars,andfunctions;school-businessemployment
37programs;andthedonationofpropertyandequipmentofthecorporationtotheschool;
38 (2)Expansionofprogramstoencourageschooldropoutstoreenterandcompletehigh
39schoolortocompleteagraduateequivalencydegreeprogram;
40 (3)Employmentprograms.Suchprogramsshallinitially,butnotexclusively,target
41unemployedyouthlivinginpovertyandyouthlivinginareaswithahighincidenceofcrime;
42 (4)Neworexistingyouthclubsorassociations;
43 (5)Employment/internship/apprenticeshipprogramsinbusinessortradesforpersons
44lessthantwentyyearsofage,inwhichcasethetaxcreditclaimedpursuanttothissection
45shallbeequaltoone-halfoftheamountpaidtotheinternorapprenticeinthattaxyear,except
46thatsuchcreditshallnotexceedtenthousanddollarsperperson;
47 (6)Mentorandrolemodelprograms;
48 (7)Drugandalcoholabusepreventiontrainingprogramsforyouth;
49 (8)Donationofpropertyorequipmentofthetaxpayertoschools,includingschools
50whichprimarilyeducatechildrenwhohavebeenexpelledfromotherschools,ordonationof
51thesametomunicipalities,ornot-for-profitcorporationsorothernot-for-profitorganizations
52whichofferprogramsdedicatedtoyouthviolencepreventionasauthorizedbythe
53department;
54 (9)Not-for-profit,privateorpublicyouthactivitycenters;
55 (10)Nonviolentconflictresolutionandmediationprograms;
56 (11)Youthoutreachandcounselingprograms.
57 6.Anyprogramauthorizedinsubsection5ofthissectionshall,atleastannually,
58submitareporttothedepartmentofeconomicdevelopmentoutliningthepurposeand
HCSSSSCSSBs3&69 4 59objectivesofsuchprogram,thenumberofyouthserved,thespecificactivitiesprovided
60pursuanttosuchprogram,thedurationofsuchprogramandrecordedyouthattendancewhere
61applicable.
62 7.Thedepartmentofeconomicdevelopmentshall,atleastannuallysubmitareportto
63theMissourigeneralassemblylistingtheorganizationsparticipating,servicesofferedandthe
64numberofyouthservedastheresultoftheimplementationofthissection.
65 8.Thetaxcreditallowedbythissectionshallapplytoalltaxableyearsbeginning
66afterDecember31,1995.
67 9.Forthepurposesofthecreditsdescribedinthissection,inthecaseofacorporation
68describedinsection143.471,partnership,limitedliabilitycompanydescribedinsection
69[347.015] 347.1002, cooperative,marketingenterprise,orpartnership,incomputing
70Missouri'staxliability,suchcreditsshallbeallowedtothefollowing:
71 (1)Theshareholdersofthecorporationdescribedinsection143.471;
72 (2)Thepartnersofthepartnership;
73 (3)Themembersofthelimitedliabilitycompany;and
74 (4)Individualmembersofthecooperativeormarketingenterprise.
75
76Suchcreditsshallbeapportionedtotheentitiesdescribedinsubdivisions(1)and(2)ofthis
77subsectioninproportiontotheirshareofownershiponthelastdayofthetaxpayer'stax
78period.
287.037.1.Notwithstandinganyotherprovisionoflawtothecontrary,beginning
2January1,1997,thoseinsurancecompaniesprovidingcoveragepursuanttochapter287,toa
3limitedliabilitycompany,asdefinedinsection[347.015] 347.1002, shallprovidecoverage
4fortheemployeesofthelimitedliabilitycompanywhoarenotmembersofthelimited
5liabilitycompany.Membersofthelimitedliabilitycompany,asdefinedinsection[347.015]
6347.1002, shallalsobeprovidedcoveragepursuanttochapter287,butsuchmembersmay
7individuallyelecttorejectsuchcoveragebyprovidingawrittennoticeofsuchrejectionona
8formdevelopedbythedepartmentofcommerceandinsurancetothelimitedliability
9companyanditsinsurer.Failuretoprovidenoticetothelimitedliabilitycompanyshallnot
10begroundsforanymembertoclaimthattherejectionofsuchcoverageisnotlegally
11effective.Amemberwhoelectstorejectsuchcoverageshallnotthereafterbeentitledto
12workers'compensationbenefitsunderthepolicy,evenifservingorworkinginthecapacityof
13anemployeeofthelimitedliabilitycompany,atleastuntilsuchtimeassaidmemberprovides
14thelimitedliabilitycompanyanditsinsurerwithawrittennoticewhichrescindstheprior
15rejectionofsuchcoverage.Thewrittennoticewhichrescindsthepriorrejectionofsuch
16coverageshallbeonaformdevelopedbythedepartmentofcommerceandinsurance.Any
17rescissionshallbeprospectiveinnatureandshallentitlethememberonlytosuchbenefits
HCSSSSCSSBs3&69 5 18whichaccrueonorafterthedatethenoticeofrescissionformisreceivedbytheinsurance
19company.
20 2.Notwithstandinganyotherprovisionoflawtothecontrary,beginningJanuary1,
212018,ashareholderofanScorporation,asdefinedinsubsection1ofsection143.471,withat
22leastfortypercentorgreaterinterestintheScorporation,mayindividuallyelecttoreject
23coverageunderthischapterbyprovidingawrittennoticeofsuchrejectiontotheS
24corporationanditsinsurer.FailuretoprovidenoticetotheScorporationshallnotbegrounds
25foranyshareholdertoclaimthattherejectionofsuchcoverageisnotlegallyeffective.A
26shareholderwhoelectstorejectsuchcoverageshallnotthereafterbeentitledtoworkers'
27compensationbenefitsunderthepolicy,evenifservingorworkinginthecapacityofan
28employeeoftheScorporation,atleastuntilsuchtimeassuchshareholderprovidestheS
29corporationanditsinsurerwithawrittennoticethatrescindsthepriorrejectionofsuch
30coverage.Anyrescissionshallbeprospectiveinnatureandshallentitletheshareholderonly
31tosuchbenefitsthataccrueonorafterthedatethenoticeofrescissionisreceivedbythe
32insurancecompany.
347.700.1.Amergerorconsolidationsolelybetweenanytwoormoredomestic
2corporationsoroneormoredomesticcorporationsandoneormoreforeigncorporationsshall
3begovernedbyandsubjecttochapter351or355,asisapplicable.
4 2.Amergerorconsolidationsolelybetweenanytwoormoredomesticgeneral
5partnershipsoroneormoredomesticgeneralpartnershipsandoneormoreforeigngeneral
6partnershipsshallbegovernedbyandsubjecttosection358.520.
7 3.Amergerorconsolidationsolelybetweenanytwoormoredomesticlimited
8partnershipsoroneormoredomesticlimitedpartnershipsandoneormoreforeignlimited
9partnershipsshallbegovernedbyandsubjecttosection359.165.
10 4.Amergerorconsolidationsolelybetweenanytwoormoredomesticlimited
11liabilitycompaniesoroneormoredomesticlimitedliabilitycompaniesandoneormore
12foreignlimitedliabilitycompaniesshallbegovernedbysections[347.127to347.133]
13347.1164to347.1222.
14 5.Abusinesscombinationinvolvinganyresidentdomesticcorporationandany
15interestedshareholderofsuchresidentdomesticcorporationshallbegovernedbyandsubject
16tosection351.459.
17 6.Subjecttotheprovisionsofthissection,anymergerorconsolidationbetweenone
18ormoredomesticcorporationsandanyoneormoreconstituententitiesatleastoneofwhich
19isnotacorporation,oneormoredomesticgeneralpartnershipsandanyoneormore
20constituententitiesatleastoneofwhichisnotageneralpartnership,oneormoredomestic
21limitedpartnershipsandanyoneormoreconstituententitiesatleastoneofwhichisnota
22limitedpartnership,oneormoredomesticlimitedliabilitypartnershipsandanyoneormore
HCSSSSCSSBs3&69 6 23constituententitiesatleastoneofwhichisnotalimitedliabilitypartnership,oroneormore
24domesticlimitedliabilitylimitedpartnershipsandanyoneormoreconstituententitiesatleast
25oneofwhichisnotalimitedliabilitylimitedpartnership[, oroneormoredomesticlimited
26liabilitycompaniesandanyoneormoreconstituententitiesatleastoneofwhichisnota
27limitedliabilitycompany] shallbegovernedbyandsubjecttotheprovisionsofsections
28347.700to347.735.
347.705.Asusedinsections347.700to347.735,thefollowingtermsmean:
2 (1)"Constituententity",eachpersonthatisapartytoamergerorconsolidation
3subjecttosections347.700to347.735;
4 (2)"Newentity",thepersonintowhichconstituententitiesconsolidate,asidentified
5intheagreementofconsolidationorarticlesofconsolidationprovidedforinsections347.700
6to347.735;
7 (3)"Organizationaldocument",withrespecttoacorporation,itsarticlesof
8corporationortheirequivalent,withrespecttoageneralpartnership,itsfictitiousname
9registrationoritsequivalent,withrespecttoalimitedpartnership,itscertificateoflimited
10partnershiporitsequivalent,[withrespecttoalimitedliabilitycompany,itsarticlesof
11organizationortheirequivalent,] withrespecttoalimitedliabilitypartnership,itsregistration
12asalimitedliabilitypartnershiporitsequivalent,withrespecttoalimitedliabilitylimited
13partnership,itscertificateoflimitedpartnershipanditsregistrationasalimitedliability
14partnershiportheirequivalent,andwithrespecttoanyothertypeofperson,thedocuments,if
15any,necessarytoformandorganizesuchpersonunderthelawsofthejurisdictionunder
16whichsuchpersonwasorisformedandorganized;
17 (4)"Person",adomesticorforeigngeneralpartnership,limitedpartnership,limited
18liabilitypartnership,limitedliabilitylimitedpartnership,[limitedliabilitycompany,]
19corporation,trust,businesstrust,realestateinvestmenttrustandotherassociationor
20businessentity;
21 (5)"Survivingentity",theconstituententitysurvivingamerger,asidentifiedinthe
22agreementofmergerorarticlesofmergerprovidedforinsections347.700to347.735.
347.710.Subjecttotheprovisionsofsections347.700to347.735,anyoneormore
2domesticcorporationsmaymergeorconsolidateintoorwithanyoneormorepersonsatleast
3oneofwhichisnotacorporation,anyoneormoredomesticgeneralpartnershipsmaymerge
4orconsolidateintoorwithanyoneormorepersonsatleastoneofwhichisnotageneral
5partnership,anyoneormoredomesticlimitedpartnershipsmaymergeorconsolidateintoor
6withanyoneormorepersonsatleastoneofwhichisnotalimitedpartnership,andanyone
7ormoredomesticlimitedliabilitylimitedpartnershipsmaymergeorconsolidateintoorwith
8anyoneormorepersonsatleastoneofwhichisnotalimitedliabilitylimitedpartnership[,
HCSSSSCSSBs3&69 7 9andanyoneormoredomesticlimitedliabilitycompaniesmaymergeorconsolidateintoor
10withanyoneormorepersonsatleastoneofwhichisnotalimitedliabilitycompany].
347.720.1.Theagreementofmergerorconsolidationrequiredbysection347.715
2shallbeauthorizedandapprovedinthefollowingmanner:
3 (1)Aconstituententitythatisadomesticgeneralpartnershipshallhavethe
4agreementofmergerorconsolidationauthorizedandapprovedbyallofthepartners,unless
5otherwiseprovidedinthearticlesoragreementofpartnership;
6 (2)Aconstituententitythatisadomesticlimitedpartnershipshallhavethe
7agreementofmergerorconsolidationapprovedbyallgeneralpartnersandbyallofthe
8limitedpartnersunlessotherwiseprovidedinthearticlesoragreementoflimitedpartnership;
9 (3)Aconstituententitythatisadomesticcorporationshallhavetheagreementof
10mergerorconsolidationapprovedinthemannerapplicabletoamergeroftwoormore
11domesticcorporationsasprovidedinchapter351or355,asisapplicable;and
12 (4)[Aconstituententitythatisadomesticlimitedliabilitycompanyshallhavethe
13agreementofmergerorconsolidationapprovedinthemannerprovidedinsection347.079;
14and
15 (5)]Eachconstituententityformedunderthelawsofajurisdictionotherthanthis
16stateshallhavetheagreementofmergerorconsolidationapprovedinaccordancewiththe
17lawsofsuchotherjurisdiction.
18 2.Thefactthattheagreementofmergerorconsolidationhasbeenauthorizedand
19approvedinaccordancewiththissectionshallbecertifiedontheagreementofmergeror
20consolidationonbehalfofeachconstituententity:
21 (1)Inthecaseofanydomesticgeneralorlimitedpartnership,byanygeneralpartner;
22 (2)Inthecaseofanydomesticcorporation,byitspresidentoravicepresident,and
23byitssecretaryoranassistantsecretary;and
24 (3)[Inthecaseofanydomesticlimitedliabilitycompany,byanyauthorizedperson
25asdefinedinsection347.015;and
26 (4)]Inthecaseofanyconstituententityformedunderthelawsofanyjurisdiction
27otherthanthisstate,inaccordancewiththelawsofsuchotherjurisdiction.
28 3.Aftertheagreementofmergerorconsolidationisauthorizedandapproved,unless
29theagreementofmergerorconsolidationprovidesotherwise,andatanytimebeforethe
30agreementofmergerorconsolidationorcertificateofmergerorconsolidationiseffectiveas
31providedforinsection347.725,theagreementofmergerorconsolidationmaybeabandoned,
32subjecttoanycontractualrights,inaccordancewiththeproceduresetforthintheagreement
33ofmergerorconsolidationor,ifnoneissetforth,withtheapprovalofthosepersonsor
34individualsentitledtoapprovethemergerorconsolidationasprovidedinsubsection1ofthis
35section.
HCSSSSCSSBs3&69 8 347.1000.Sections347.1000to347.1228shallbeknown,andmaybecitedas,the
2"UniformLimitedLiabilityCompanyAct".
347.1002.Insections347.1000to347.1228:
2 (1)"Certificateoforganization"meansthecertificaterequiredbysection
3347.1042.Thetermincludesthecertificateasamendedorrestated;
4 (2)"Contribution",exceptinthephrase"rightofcontribution",means
5propertyorabenefitdescribedinsection347.1076whichisprovidedbyapersontoa
6limitedliabilitycompanytobecomeamemberorintheperson'scapacityasamember;
7 (3)"Debtorinbankruptcy"meansapersonthatisthesubjectof:
8 (a)AnorderforreliefunderTitle11oftheUnitedStatesCodeoracomparable
9orderunderasuccessorstatuteofgeneralapplication;or
10 (b)Acomparableorderunderfederal,state,orforeignlawgoverning
11insolvency;
12 (4)"Distribution"meansatransferofmoneysorotherpropertyfromalimited
13liabilitycompanytoapersononaccountofatransferableinterestorintheperson's
14capacityasamember.Theterm:
15 (a)Includes:
16 a.Aredemptionorotherpurchasebyalimitedliabilitycompanyofa
17transferableinterest;and
18 b.Atransfertoamemberinreturnforthemember'srelinquishmentofany
19righttoparticipateasamemberinthemanagementorconductofthecompany's
20activitiesandaffairsortohaveaccesstorecordsorotherinformationconcerningthe
21company'sactivitiesandaffairs;and
22 (b)Doesnotincludeamountsconstitutingreasonablecompensationforpresent
23orpastserviceorpaymentsmadeintheordinarycourseofbusinessunderabonafide
24retirementplanorotherbonafidebenefitsprogram;
25 (5)"Foreignlimitedliabilitycompany"meansanunincorporatedentityformed
26underthelawofajurisdictionotherthanthisstatewhichwouldbealimitedliability
27companyifformedunderthelawofthisstate;
28 (6)"Jurisdiction",usedtorefertoapoliticalentity,meanstheUnitedStates,a
29state,aforeigncountry,orapoliticalsubdivisionofaforeigncountry;
30 (7)"Jurisdictionofformation"meansthejurisdictionwhoselawgovernsthe
31internalaffairsofanentity;
32 (8)"Limitedliabilitycompany",exceptinthephrase"foreignlimitedliability
33company"andinsections347.1164to347.1222,meansanentityformedundersections
34347.1000to347.1228orwhichbecomessubjecttosections347.1000to347.1228under
35sections347.1164to347.1222orsection347.1018;
HCSSSSCSSBs3&69 9 36 (9)"Manager"meansapersonthatundertheoperatingagreementofa
37manager-managedlimitedliabilitycompanyisresponsible,aloneorinconcertwith
38others,forperformingthemanagementfunctionsstatedinsubsection3ofsection
39347.1086;
40 (10)"Manager-managedlimitedliabilitycompany"meansalimitedliability
41companythatqualifiesundersubsection1ofsection347.1086;
42 (11)"Member"meansapersonthat:
43 (a)Hasbecomeamemberofalimitedliabilitycompanyundersection347.1074
44orwasamemberinacompanywhenthecompanybecamesubjecttosections347.1000
45to347.1228undersection347.1018;and
46 (b)Hasnotdissociatedundersection347.1104;
47 (12)"Member-managedlimitedliabilitycompany"meansalimitedliability
48companythatisnotamanager-managedlimitedliabilitycompany;
49 (13)"Operatingagreement"meanstheagreement,whetherreferredtoasan
50operatingagreementandwhetheroral,implied,inarecord,orinanycombination
51thereof,ofallthemembersofalimitedliabilitycompany,includingasolemember,
52concerningthemattersdescribedinsubsection1ofsection347.1008.Thetermincludes
53theagreementasamendedorrestated;
54 (14)"Organizer"meansapersonthatactsundersection347.1042toforma
55limitedliabilitycompany;
56 (15)"Person"meansanindividual,businesscorporation,nonprofitcorporation,
57partnership,limitedpartnership,limitedliabilitycompany,generalcooperative
58association,limitedcooperativeassociation,unincorporatednonprofitassociation,
59statutorytrust,businesstrust,common-lawbusinesstrust,estate,trust,association,
60jointventure,publiccorporation,governmentorgovernmentalsubdivision,agency,or
61instrumentality,oranyotherlegalorcommercialentity;
62 (16)"Principaloffice"meanstheprincipalexecutiveofficeofalimitedliability
63companyorforeignlimitedliabilitycompany,whethertheofficeislocatedinthisstate;
64 (17)"Property"meansallproperty,whetherreal,personal,ormixedortangible
65orintangible,oranyrightorinteresttherein;
66 (18)"Record",usedasanoun,meansinformationthatisinscribedonatangible
67mediumorthatisstoredinanelectronicorothermediumandisretrievablein
68perceivableform;
69 (19)"Registeredagent"meansanagentofalimitedliabilitycompanyorforeign
70limitedliabilitycompanywhichisauthorizedtoreceiveserviceofanyprocess,notice,or
71demandrequiredorpermittedbylawtobeservedonthecompany;
HCSSSSCSSBs3&69 10 72 (20)"Registeredforeignlimitedliabilitycompany"meansaforeignlimited
73liabilitycompanythatisregisteredtodobusinessinthisstatepursuanttoastatementof
74registrationfiledbythesecretaryofstate;
75 (21)"Sign"means,withpresentintenttoauthenticateoradoptarecord:
76 (a)Toexecuteoradoptatangiblesymbol;or
77 (b)Toattachtoorlogicallyassociatewiththerecordanelectronicsymbol,
78sound,orprocess;
79 (22)"State"meansastateoftheUnitedStates,theDistrictofColumbia,Puerto
80Rico,theUnitedStatesVirginIslands,oranyterritoryorinsularpossessionsubjectto
81thejurisdictionoftheUnitedStates;
82 (23)"Transfer"includes:
83 (a)Anassignment;
84 (b)Aconveyance;
85 (c)Asale;
86 (d)Alease;
87 (e)Anencumbrance,includingamortgageorsecurityinterest;
88 (f)Agift;and
89 (g)Atransferbyoperationoflaw;
90 (24)"Transferableinterest"meanstheright,asinitiallyownedbyapersonin
91theperson'scapacityasamember,toreceivedistributionsfromalimitedliability
92company,whetherthepersonremainsamemberorcontinuestoownanypartofthe
93right.Thetermappliestoanyfractionoftheinterest,bywhomeverowned;
94 (25)"Transferee"meansapersontowhichallorpartofatransferableinterest
95hasbeentransferred,whetherthetransferorisamember.Thetermincludesaperson
96thatownsatransferableinterestundersubdivision(3)ofsubsection1ofsection
97347.1106.
347.1004.1.Apersonknowsafactiftheperson:
2 (1)Hasactualknowledgeofit;or
3 (2)Isdeemedtoknowitundersubdivision(1)ofsubsection4ofthissectionor
4lawotherthansections347.1000to347.1228.
5 2.Apersonhasnoticeofafactiftheperson:
6 (1)Hasreasontoknowthefactfromallthefactsknowntothepersonatthetime
7inquestion;or
8 (2)Isdeemedtohavenoticeofthefactundersubdivision(2)ofsubsection4of
9thissection.
HCSSSSCSSBs3&69 11 10 3.Subjecttosubsection6ofsection347.1060,apersonnotifiesanotherpersonof
11afactbytakingstepsreasonablyrequiredtoinformtheotherpersoninordinary
12course,whetherthosestepscausetheotherpersontoknowthefact.
13 4.Apersonnotamemberisdeemed:
14 (1)Toknowofalimitationonauthoritytotransferrealpropertyasprovidedin
15subsection7ofsection347.1068;and
16 (2)Tohavenoticeofalimitedliabilitycompany's:
17 (a)Dissolutionninetydaysafterastatementofdissolutionunderparagraph(a)
18ofsubdivision(2)ofsubsection2ofsection347.1110becomeseffective;
19 (b)Terminationninetydaysafterastatementofterminationunderparagraph
20(f)ofsubdivision(2)ofsubsection2ofsection347.1110becomeseffective;and
21 (c)Participationinamerger,interestexchange,conversion,ordomestication,
22ninetydaysafterarticlesofmerger,interestexchange,conversion,ordomestication
23undersections347.1164to347.1222becomeeffective.
347.1006.Thelawofthisstategoverns:
2 (1)Theinternalaffairsofalimitedliabilitycompany;and
3 (2)Theliabilityofamemberasmemberandamanagerasmanagerforadebt,
4obligation,orotherliabilityofalimitedliabilitycompany.
347.1008.1.Exceptasotherwiseprovidedinsubsections3and4ofthissection,
2theoperatingagreementgoverns:
3 (1)Relationsamongthemembersasmembersandbetweenthemembersand
4thelimitedliabilitycompany;
5 (2)Therightsanddutiesundersections347.1000to347.1228ofapersoninthe
6capacityofmanager;
7 (3)Theactivitiesandaffairsofthecompanyandtheconductofthoseactivities
8andaffairs;and
9 (4)Themeansandconditionsforamendingtheoperatingagreement.
10 2.Totheextenttheoperatingagreementdoesnotprovideforamatterdescribed
11insubsection1ofthissection,sections347.1000to347.1228governthematter.
12 3.Anoperatingagreementshallnot:
13 (1)Varythelawapplicableundersection347.1006;
14 (2)Varyalimitedliabilitycompany'scapacityundersection347.1016tosueand
15besuedinitsownname;
16 (3)Varyanyrequirement,procedure,orotherprovisionofsections347.1000to
17347.1228pertainingto:
18 (a)Registeredagents;or
HCSSSSCSSBs3&69 12 19 (b)Thesecretaryofstate,includingprovisionspertainingtorecordsauthorized
20orrequiredtobedeliveredtothesecretaryofstateforfilingundersections347.1000to
21347.1228;
22 (4)Varytheprovisionsofsection347.1048;
23 (5)Alteroreliminatethedutyofloyaltyorthedutyofcare,exceptasotherwise
24providedinsubsection4ofthissection;
25 (6)Eliminatethecontractualobligationofgoodfaithandfairdealingunder
26subsection4ofsection347.1090,buttheoperatingagreementmayprescribethe
27standards,ifnotmanifestlyunreasonable,bywhichtheperformanceoftheobligationis
28tobemeasured;
29 (7)Relieveorexonerateapersonfromliabilityforconductinvolvingbadfaith,
30willfulorintentionalmisconduct,orknowingviolationoflaw;
31 (8)Unreasonablyrestrictthedutiesandrightsundersection347.1092,butthe
32operatingagreementmayimposereasonablerestrictionsontheavailabilityanduseof
33informationobtainedunderthatsectionandmaydefineappropriateremedies,
34includingliquidateddamages,forabreachofanyreasonablerestrictiononuse;
35 (9)Varythecausesofdissolutionspecifiedinsubdivision(4)ofsubsection1of
36section347.1108;
37 (10)Varytherequirementtowindupthecompany'sactivitiesandaffairsas
38specifiedinsubsections1and5ofsection347.1110andsubdivision(1)ofsubsection2of
39section347.1110;
40 (11)Unreasonablyrestricttherightofamembertomaintainanactionunder
41sections347.1128to347.1138;
42 (12)Varytheprovisionsofsection347.1136,buttheoperatingagreementmay
43providethatthecompanyshallnothaveaspeciallitigationcommittee;
44 (13)Varytherightofamembertoapproveamerger,interestexchange,
45conversion,ordomesticationundersubdivision(2)ofsubsection1ofsection347.1180,
46subdivision(2)ofsubsection1ofsection347.1192,subdivision(2)ofsubsection1of
47section347.1204,orsubdivision(2)ofsubsection1ofsection347.1216;
48 (14)Varytherequiredcontentsofaplanofmergerundersubsection1ofsection
49347.1178,planofinterestexchangeundersubsection1ofsection347.1190,planof
50conversionundersubsection1ofsection347.1202,orplanofdomesticationunder
51subsection1ofsection347.1214;or
52 (15)Exceptasotherwiseprovidedinsection347.1010andsubsection2ofsection
53347.1012,restricttherightsundersections347.1000to347.1228ofapersonotherthana
54memberormanager.
HCSSSSCSSBs3&69 13 55 4.Subjecttosubdivision(7)ofsubsection3ofthissection,withoutlimitingother
56termsthatmaybeincludedinanoperatingagreement,thefollowingrulesapply:
57 (1)Theoperatingagreementmay:
58 (a)Specifythemethodbywhichaspecificactortransactionthatwould
59otherwiseviolatethedutyofloyaltymaybeauthorizedorratifiedbyoneormore
60disinterestedandindependentpersonsafterfulldisclosureofallmaterialfacts;and
61 (b)Altertheprohibitioninsubdivision(2)ofsubsection1ofsection347.1082so
62thattheprohibitionrequiresonlythatthecompany'stotalassetsnotbelessthanthe
63sumofitstotalliabilities;
64 (2)Totheextenttheoperatingagreementofamember-managedlimitedliability
65companyexpresslyrelievesamemberofaresponsibilitythatthememberotherwise
66wouldhaveundersections347.1000to347.1228andimposestheresponsibilityononeor
67moreothermembers,theagreementalsomayeliminateorlimitanyfiduciarydutyof
68thememberrelievedoftheresponsibilitywhichwouldhavepertainedtothe
69responsibility;
70 (3)Ifnotmanifestlyunreasonable,theoperatingagreementmay:
71 (a)Alteroreliminatetheaspectsofthedutyofloyaltystatedinsubsections2
72and9ofsection347.1090;
73 (b)Identifyspecifictypesorcategoriesofactivitiesthatdonotviolatethedutyof
74loyalty;
75 (c)Alterthedutyofcarebutshallnotauthorizeconductinvolvingbadfaith,
76willfulorintentionalmisconduct,orknowingviolationoflaw;and
77 (d)Alteroreliminateanyotherfiduciaryduty.
78 5.Thecourtshalldecideasamatteroflawwhetheratermofanoperating
79agreementismanifestlyunreasonableundersubdivision(6)ofsubsection3ofthis
80sectionorsubdivision(3)ofsubsection4ofthissection.Thecourt:
81 (1)Shallmakeitsdeterminationasofthetimethechallengedtermbecamepart
82oftheoperatingagreementandbyconsideringonlycircumstancesexistingatthattime;
83and
84 (2)Mayinvalidatethetermonlyif,inlightofthepurposes,activities,andaffairs
85ofthelimitedliabilitycompany,itisreadilyapparentthat:
86 (a)Theobjectiveofthetermisunreasonable;or
87 (b)Thetermisanunreasonablemeanstoachievetheterm'sobjective.
347.1010.1.Alimitedliabilitycompanyisboundbyandmayenforcethe
2operatingagreement,whetherthecompanyhasitselfmanifestedassenttotheoperating
3agreement.
HCSSSSCSSBs3&69 14 4 2.Apersonthatbecomesamemberisdeemedtoassenttotheoperating
5agreement.
6 3.Twoormorepersonsintendingtobecometheinitialmembersofalimited
7liabilitycompanymaymakeanagreementprovidingthatupontheformationofthe
8companytheagreementwillbecometheoperatingagreement.Onepersonintendingto
9becometheinitialmemberofalimitedliabilitycompanymayassenttotermsproviding
10thatupontheformationofthecompanythetermswillbecometheoperatingagreement.
347.1012.1.Anoperatingagreementmayspecifythatitsamendmentrequires
2theapprovalofapersonthatisnotapartytotheagreementorthesatisfactionofa
3condition.Anamendmentisineffectiveifitsadoptiondoesnotincludetherequired
4approvalorsatisfythespecifiedcondition.
5 2.Theobligationsofalimitedliabilitycompanyanditsmemberstoapersonin
6theperson'scapacityasatransfereeorapersondissociatedasamemberaregoverned
7bytheoperatingagreement.Subjectonlytoacourtorderissuedundersubdivision(2)
8ofsubsection2ofsection347.1098toeffectuateachargingorder,anamendmenttothe
9operatingagreementmadeafterapersonbecomesatransfereeorisdissociatedasa
10member:
11 (1)Iseffectivewithregardtoanydebt,obligation,orotherliabilityofthelimited
12liabilitycompanyoritsmemberstothepersonintheperson'scapacityasatransferee
13orpersondissociatedasamember;and
14 (2)Isnoteffectivetotheextenttheamendmentimposesanewdebt,obligation,
15orotherliabilityonthetransfereeorpersondissociatedasamember.
16 3.Ifarecorddeliveredbyalimitedliabilitycompanytothesecretaryofstatefor
17filingbecomeseffectiveandcontainsaprovisionthatwouldbeineffectiveunder
18subsection3orsubdivision(3)ofsubsection4ofsection347.1008ifcontainedinthe
19operatingagreement,theprovisionisineffectiveintherecord.
20 4.Subjecttosubsection3ofthissection,ifarecorddeliveredbyalimited
21liabilitycompanytothesecretaryofstateforfilingbecomeseffectiveandconflictswith
22aprovisionoftheoperatingagreement:
23 (1)Theagreementprevailsastomembers,personsdissociatedasmembers,
24transferees,andmanagers;and
25 (2)Therecordprevailsastootherpersonstotheextenttheyreasonablyrelyon
26therecord.
347.1014.1.Alimitedliabilitycompanyisanentitydistinctfromitsmemberor
2members.
3 2.Alimitedliabilitycompanymayhaveanylawfulpurpose,regardlessof
4whetherforprofit.
HCSSSSCSSBs3&69 15 5 3.Alimitedliabilitycompanyhasperpetualduration.
347.1016.Alimitedliabilitycompanyhasthecapacitytosueandbesuedinits
2ownnameandthepowertodoallthingsnecessaryorconvenienttocarryonits
3activitiesandaffairs.
347.1018.1.BeforeAugust28,2023,sections347.1000to347.1228governonly:
2 (1)AlimitedliabilitycompanyformedonorafterAugust28,2023;and
3 (2)Exceptasotherwiseprovidedinsubsection3ofthissection,alimitedliability
4companyformedbeforeAugust28,2023,whichelects,inthemannerprovidedinits
5operatingagreementorbylawforamendingtheoperatingagreement,tobesubjectto
6sections347.1000to347.1228.
7 2.Exceptasotherwiseprovidedinsubsection3ofthissection,onandafter
8August28,2023,sections347.1000to347.1228governalllimitedliabilitycompanies.
9 3.Forpurposesofapplyingsections347.1000to347.1228toalimitedliability
10companyformedbeforeAugust28,2023:
11 (1)Thecompany'sarticlesoforganizationaredeemedtobethecompany's
12certificateoforganization;and
13 (2)Forpurposesofapplyingsubdivision(10)ofsection347.1002andsubjectto
14subsection4ofsection347.1012,languageinthecompany'sarticlesoforganization
15designatingthecompany'smanagementstructureoperatesasifthatlanguagewerein
16theoperatingagreement.
347.1020.Unlessdisplacedbyparticularprovisionsofsections347.1000to
2347.1228,theprinciplesoflawandequitysupplementsections347.1000to347.1228.
347.1022.1.Thenameofalimitedliabilitycompanyshallcontainthephrase
2"limitedliabilitycompany"or"limitedcompany"ortheabbreviation"L.L.C.",
3"LLC","L.C.",or"LC"."Limited"maybeabbreviatedas"Ltd.",and"company"
4maybeabbreviatedas"Co.".
5 2.Exceptasotherwiseprovidedinsubsection4ofthissection,thenameofa
6limitedliabilitycompany,andthenameunderwhichaforeignlimitedliabilitycompany
7mayregistertodobusinessinthisstate,shallbedistinguishableontherecordsofthe
8secretaryofstatefromany:
9 (1)Nameofanexistingpersonwhoseformationrequiredthefilingofarecord
10bythesecretaryofstateandwhichisnotatthetimeadministrativelydissolved;
11 (2)Nameofalimitedliabilitypartnershipwhosestatementofqualificationisin
12effect;
13 (3)Nameunderwhichapersonisregisteredtodobusinessinthisstatebythe
14filingofarecordbythesecretaryofstate;
HCSSSSCSSBs3&69 16 15 (4)Namereservedundersection347.1024orotherlawofthisstateprovidingfor
16thereservationofanamebythefilingofarecordbythesecretaryofstate;
17 (5)Nameregisteredundersection347.1026orotherlawofthisstateproviding
18fortheregistrationofanamebythefilingofarecordbythesecretaryofstate;and
19 (6)Nameregisteredundersection417.200.
20 3.Ifapersonconsentsinarecordtotheuseofitsnameandsubmitsan
21undertakinginaformsatisfactorytothesecretaryofstatetochangeitsnametoaname
22thatisdistinguishableontherecordsofthesecretaryofstatefromanynameinany
23categoryofnamesinsubsection2ofthissection,thenameoftheconsentingpersonmay
24beusedbythepersontowhichtheconsentwasgiven.
25 4.Exceptasotherwiseprovidedinsubsection5ofthissection,indetermining
26whetheranameisthesameasornotdistinguishableontherecordsofthesecretaryof
27statefromthenameofanotherperson,words,phrases,orabbreviationsindicatinga
28typeofperson,suchas"corporation","corp.","incorporated","Inc.","professional
29corporation","P.C.","PC","professionalassociation","P.A.","PA","Limited",
30"Ltd.","limitedpartnership","L.P.","LP","limitedliabilitypartnership","L.L.P.",
31"LLP","registeredlimitedliabilitypartnership","R.L.L.P.","RLLP","limited
32liabilitylimitedpartnership","L.L.L.P.","LLLP","registeredlimitedliability
33limitedpartnership","R.L.L.L.P.","RLLLP","limitedliabilitycompany","L.L.C.",
34"LLC","limitedcooperativeassociation","limitedcooperative",or"L.C.A.",or
35"LCA"shallnotbetakenintoaccount.
36 5.Apersonmayconsentinarecordtotheuseofanamethatisnot
37distinguishableontherecordsofthesecretaryofstatefromitsnameexceptforthe
38additionofaword,phrase,orabbreviationindicatingthetypeofpersonasprovidedin
39subsection4ofthissection.Insuchacase,thepersonneednotchangeitsname
40pursuanttosubsection3ofthissection.
41 6.Thenameofalimitedliabilitycompanyorforeignlimitedliabilitycompany
42shallnotcontaintheword"corporation","incorporated,"limitedpartnership",
43"limitedliabilitypartnership","limitedliabilitylimitedpartnership",orany
44abbreviationofoneofsuchwordsoranywordorphrasethatindicatesorimplies
45thatitisagovernmentalagency.
46 7.Alimitedliabilitycompanyorforeignlimitedliabilitycompanymayusea
47namethatisnotdistinguishablefromanamedescribedinsubdivisions(1)through(6)
48ofsubsection2ofthissectionifthecompanydeliverstothesecretaryofstateacertified
49copyofafinaljudgmentofacourtofcompetentjurisdictionestablishingtherightofthe
50companytousethenameinthisstate.
HCSSSSCSSBs3&69 17 347.1024.1.Apersonmayreservetheexclusiveuseofanamethatcomplies
2withsection347.1022bydeliveringanapplicationtothesecretaryofstateforfiling.
3Theapplicationshallstatethenameandaddressoftheapplicantandthenametobe
4reserved.Ifthesecretaryofstatefindsthatthenameisavailable,thesecretaryofstate
5shallreservethenamefortheapplicant'sexclusiveuseforonehundredtwentydays.
6 2.Theownerofareservednamemaytransferthereservationtoanotherperson
7bydeliveringtothesecretaryofstateasignednoticeinarecordofthetransferwhich
8statesthenameandaddressofthepersontowhichthereservationisbeingtransferred.
347.1026.1.Aforeignlimitedliabilitycompanynotregisteredtodobusinessin
2thisstateundersections347.1140to347.1162mayregisteritsname,oranalternate
3nameadoptedpursuanttosection347.1150,ifthenameisdistinguishableontherecords
4ofthesecretaryofstatefromthenamesthatarenotavailableundersection347.1022.
5 2.Toregisteritsnameoranalternatenameadoptedpursuanttosection
6347.1150,aforeignlimitedliabilitycompanyshalldelivertothesecretaryofstatefor
7filinganapplicationstatingthecompany'sname,thejurisdictionanddateofits
8formation,andanyalternatenameadoptedpursuanttosection347.1150.Ifthe
9secretaryofstatefindsthatthenameappliedforisavailable,thesecretaryofstateshall
10registerthenamefortheapplicant'sexclusiveuse.
11 3.Theregistrationofanameunderthissectioniseffectiveforoneyearafterthe
12dateofregistration.
13 4.Aforeignlimitedliabilitycompanywhosenameregistrationiseffectivemay
14renewtheregistrationforsuccessiveone-yearperiodsbydelivering,notearlierthan
15threemonthsbeforetheexpirationoftheregistration,tothesecretaryofstateforfiling
16arenewalapplicationthatcomplieswiththissection.Whenfiled,therenewal
17applicationrenewstheregistrationforasucceedingone-yearperiod.
18 5.Aforeignlimitedliabilitycompanywhosenameregistrationiseffectivemay
19registerasaforeignlimitedliabilitycompanyundertheregisterednameorconsentina
20signedrecordtotheuseofthatnamebyanotherpersonthatisnotanindividual.
347.1028.1.Eachlimitedliabilitycompanyandeachregisteredforeignlimited
2liabilitycompanyshalldesignateandmaintainaregisteredagentinthisstate.The
3designationofaregisteredagentisanaffirmationoffactbythelimitedliability
4companyorregisteredforeignlimitedliabilitycompanythattheagenthasconsentedto
5serve.
6 2.Aregisteredagentforalimitedliabilitycompanyorregisteredforeignlimited
7liabilitycompanyshallhaveaplaceofbusinessinthisstate.
8 3.Theonlydutiesundersections347.1000to347.1228ofaregisteredagentthat
9hascompliedwithsections347.1000to347.1228are:
HCSSSSCSSBs3&69 18 10 (1)Toforwardtothelimitedliabilitycompanyorregisteredforeignlimited
11liabilitycompanyattheaddressmostrecentlysuppliedtotheagentbythecompanyor
12foreigncompanyanyprocess,notice,ordemandpertainingtothecompanyorforeign
13companywhichisservedonorreceivedbytheagent;
14 (2)Iftheregisteredagentresigns,toprovidethenoticerequiredbysubsection3
15ofsection347.1032tothecompanyorforeigncompanyattheaddressmostrecently
16suppliedtotheagentbythecompanyorforeigncompany;and
17 (3)Tokeepcurrenttheinformationwithrespecttotheagentinthecertificateof
18organizationorforeignregistrationstatement.
347.1030.1.Alimitedliabilitycompanyorregisteredforeignlimitedliability
2companymaychangeitsregisteredagentortheaddressofitsregisteredagentby
3deliveringtothesecretaryofstateforfilingastatementofchangethatstates:
4 (1)Thenameofthecompanyorforeigncompany;and
5 (2)Theinformationthatistobeineffectasaresultofthefilingofthestatement
6ofchange.
7 2.Themembersormanagersofalimitedliabilitycompanyneednotapprovethe
8deliverytothesecretaryofstatefilingof:
9 (1)Astatementofchangeunderthissection;or
10 (2)Asimilarfilingchangingtheregisteredagentorregisteredoffice,ifany,of
11thecompanyinanyotherjurisdiction.
12 3.Astatementofchangeunderthissectiondesignatinganewregisteredagentis
13anaffirmationoffactbythelimitedliabilitycompanyorregisteredforeignlimited
14liabilitycompanythattheagenthasconsentedtoserve.
15 4.Asanalternativetousingtheprocedureinthissection,alimitedliability
16companymayamenditscertificateoforganization.
347.1032.1.Aregisteredagentmayresignasanagentforalimitedliability
2companyorregisteredforeignlimitedliabilitycompanybydeliveringtothesecretaryof
3stateforfilingastatementofresignationthatstates:
4 (1)Thenameofthecompanyorforeigncompany;
5 (2)Thenameoftheagent;
6 (3)Thattheagentresignsfromservingasregisteredagentforthecompanyor
7foreigncompany;and
8 (4)Theaddressofthecompanyorforeigncompanytowhichtheagentwillsend
9thenoticerequiredbysubsection3ofthissection.
10 2.Astatementofresignationtakeseffectontheearlierof:
11 (1)Thethirty-firstdayafterthedayonwhichitisfiledbythesecretaryofstate;
12or
HCSSSSCSSBs3&69 19 13 (2)Thedesignationofanewregisteredagentforthelimitedliabilitycompanyor
14registeredforeignlimitedliabilitycompany.
15 3.Aregisteredagentpromptlyshallfurnishtothelimitedliabilitycompanyor
16registeredforeignlimitedliabilitycompanynoticeinarecordofthedateonwhicha
17statementofresignationwasfiled.
18 4.Whenastatementofresignationtakeseffect,theregisteredagentceasesto
19haveresponsibilityundersections347.1000to347.1228foranymatterthereafter
20tenderedtoitasagentforthelimitedliabilitycompanyorregisteredforeignlimited
21liabilitycompany.Theresignationdoesnotaffectanycontractualrightsthecompany
22orforeigncompanyhasagainsttheagentorthattheagenthasagainstthecompanyor
23foreigncompany.
24 5.Aregisteredagentmayresignwithrespecttoalimitedliabilitycompanyor
25registeredforeignlimitedliabilitycompanywhetherthecompanyorforeigncompanyis
26ingoodstanding.
347.1034.1.Ifaregisteredagentchangesitsnameoraddress,theagentmay
2delivertothesecretaryofstateforfilingastatementofchangethatstates:
3 (1)Thenameofthelimitedliabilitycompanyorregisteredforeignlimited
4liabilitycompanyrepresentedbytheregisteredagent;
5 (2)Thenameoftheagentascurrentlyshownintherecordsofthesecretaryof
6stateforthecompanyorforeigncompany;
7 (3)Ifthenameoftheagenthaschanged,itsnewname;and
8 (4)Iftheaddressoftheagenthaschanged,itsnewaddress.
9 2.Aregisteredagentpromptlyshallfurnishnoticetotherepresentedlimited
10liabilitycompanyorregisteredforeignlimitedliabilitycompanyofthefilingbythe
11secretaryofstateofthestatementofchangeandthechangesmadebythestatement.
347.1036.1.Alimitedliabilitycompanyorregisteredforeignlimitedliability
2companymaybeservedwithanyprocess,notice,ordemandrequiredorpermittedby
3lawbyservingitsregisteredagent.
4 2.Ifalimitedliabilitycompanyorregisteredforeignlimitedliabilitycompany
5ceasestohavearegisteredagent,orifitsregisteredagentcannotwithreasonable
6diligencebeserved,thecompanyorforeigncompanymaybeservedbyregisteredor
7certifiedmail,returnreceiptrequested,orbysimilarcommercialdeliveryservice,
8addressedtothecompanyorforeigncompanyatitsprincipaloffice.Theaddressofthe
9principalofficeshallbeasshownonthecompany'sorforeigncompany'smostrecent
10annualreportfiledbythesecretaryofstate.Serviceiseffectedunderthissubsectionon
11theearliestof:
HCSSSSCSSBs3&69 20 12 (1)Thedatethecompanyorforeigncompanyreceivesthemailordeliveryby
13thecommercialdeliveryservice;
14 (2)Thedateshownonthereturnreceipt,ifsignedbythecompanyorforeign
15company;or
16 (3)FivedaysafteritsdepositwiththeUnitedStatesPostalService,orwiththe
17commercialdeliveryservice,ifcorrectlyaddressedandwithsufficientpostageor
18payment.
19 3.Ifprocess,notice,ordemandcannotbeservedonalimitedliabilitycompany
20orregisteredforeignlimitedliabilitycompanypursuanttosubsection1or2ofthis
21section,servicemaybemadebyhandingacopytotheindividualinchargeofany
22regularplaceofbusinessoractivityofthecompanyorforeigncompanyiftheindividual
23servedisnotaplaintiffintheaction.
24 4.Serviceofprocess,notice,ordemandonaregisteredagentshallbeina
25writtenrecord.
26 5.Serviceofprocess,notice,ordemandmaybemadebyothermeansunderlaw
27otherthansections347.1000to347.1228.
347.1038.1.Exceptasotherwiseprovidedinsections347.1000to347.1228,
2permissiblemeansofdeliveryofarecordincludedeliverybyhand,mail,conventional
3commercialpractice,andelectronictransmission.
4 2.Deliverytothesecretaryofstateiseffectiveonlywhenarecordisreceivedby
5thesecretaryofstate.
347.1040.Thelegislatureofthisstatehaspowertoamendorrepealallorpartof
2sections347.1000to347.1228atanytime,andalllimitedliabilitycompaniesandforeign
3limitedliabilitycompaniessubjecttosections347.1000to347.1228aregovernedbythe
4amendmentorrepeal.
347.1042.1.Oneormorepersonsmayactasorganizerstoformalimited
2liabilitycompanybydeliveringtothesecretaryofstateforfilingacertificateof
3organization.
4 2.Acertificateoforganizationshallstate:
5 (1)Thenameofthelimitedliabilitycompany,whichshallcomplywithsection
6347.1022;
7 (2)Thestreetandmailingaddressesofthecompany'sprincipaloffice;and
8 (3)Thenameandstreetandmailingaddressesinthisstateofthecompany's
9registeredagent.
10 3.Acertificateoforganizationmaycontainstatementsastomattersotherthan
11thoserequiredbysubsection2ofthissectionbutshallnotvaryorotherwiseaffectthe
12provisionsspecifiedinsubsections3and4ofsection347.1008inamannerinconsistent
HCSSSSCSSBs3&69 21 13withthatsection.However,astatementinacertificateoforganizationisnoteffectiveas
14astatementofauthority.
15 4.Alimitedliabilitycompanyisformedwhenthecertificateoforganization
16becomeseffectiveandatleastonepersonhasbecomeamember.
347.1044.1.Acertificateoforganizationmaybeamendedorrestatedatany
2time.
3 2.Toamenditscertificateoforganization,alimitedliabilitycompanyshall
4delivertothesecretaryofstateforfilinganamendmentstating:
5 (1)Thenameofthecompany;
6 (2)Thedateoffilingofitsinitialcertificate;and
7 (3)Thetextoftheamendment.
8 3.Torestateitscertificateoforganization,alimitedliabilitycompanyshall
9delivertothesecretaryofstateforfilingarestatement,designatedassuchinits
10heading.
11 4.Ifamemberofamember-managedlimitedliabilitycompany,oramanagerof
12amanager-managedlimitedliabilitycompany,knowsthatanyinformationinafiled
13certificateoforganizationwasinaccuratewhenthecertificatewasfiledorhasbecome
14inaccurateduetochangedcircumstances,thememberormanagershallpromptly:
15 (1)Causethecertificatetobeamended;or
16 (2)Ifappropriate,delivertothesecretaryofstateforfilingastatementof
17changeundersection347.1030orastatementofcorrectionundersection347.1058.
347.1046.1.Arecorddeliveredtothesecretaryofstateforfilingpursuantto
2sections347.1000to347.1228shallbesignedasfollows:
3 (1)Exceptasotherwiseprovidedinsubdivisions(2)and(3)ofthissubsection,a
4recordsignedbyalimitedliabilitycompanyshallbesignedbyapersonauthorizedby
5thecompany;
6 (2)Acompany'sinitialcertificateoforganizationshallbesignedbyatleastone
7personactingasanorganizer;
8 (3)Arecorddeliveredonbehalfofadissolvedcompanythathasnomember
9shallbesignedbythepersonwindingupthecompany'sactivitiesandaffairsunder
10subsection3ofsection347.1110orapersonappointedundersubsection4ofsection
11347.1110towinduptheactivitiesandaffairs;
12 (4)Astatementofdenialbyapersonundersection347.1070shallbesignedby
13thatperson;
14 (5)Anyotherrecorddeliveredonbehalfofapersontothesecretaryofstatefor
15filingshallbesignedbythatperson.
HCSSSSCSSBs3&69 22 16 2.Arecorddeliveredforfilingundersections347.1000to347.1228maybe
17signedbyanagent.Ifsections347.1000to347.1228requireaparticularindividualto
18signarecordandtheindividualisdeceasedorincompetent,therecordmaybesigned
19byalegalrepresentativeoftheindividual.
20 3.Apersonthatsignsarecordasanagentorlegalrepresentativeaffirmsasa
21factthatthepersonisauthorizedtosigntherecord.
347.1048.1.Ifapersonrequiredbysections347.1000to347.1228tosigna
2recordordeliverarecordtothesecretaryofstateforfilingundersections347.1000to
3347.1228doesnotdoso,anyotherpersonthatisaggrievedmaypetitionacourtof
4competentjurisdictiontoorder:
5 (1)Thepersontosigntherecord;
6 (2)Thepersontodelivertherecordtothesecretaryofstateforfiling;or
7 (3)Thesecretaryofstatetofiletherecordunsigned.
8 2.Ifapetitionerundersubsection1ofthissectionisnotthelimitedliability
9companyorforeignlimitedliabilitycompanytowhichtherecordpertains,the
10petitionershallmakethecompanyorforeigncompanyapartytotheaction.
11 3.Arecordfiledundersubdivision(3)ofsubsection1ofthissectioniseffective
12withoutbeingsigned.
347.1050.1.Ifarecorddeliveredtothesecretaryofstateforfilingunder
2sections347.1000to347.1228andfiledbythesecretaryofstatecontainsinaccurate
3information,apersonthatsufferslossbyrelianceontheinformationmayrecover
4damagesforthelossfrom:
5 (1)Apersonthatsignedtherecord,orcausedanothertosignitontheperson's
6behalf,andknewtheinformationtobeinaccurateatthetimetherecordwassigned;
7and
8 (2)Subjecttosubsection2ofthissection,amemberofamember-managed
9limitedliabilitycompanyoramanagerofamanager-managedlimitedliabilitycompany
10if:
11 (a)Therecordwasdeliveredforfilingonbehalfofthecompany;and
12 (b)Thememberormanagerkneworhadnoticeoftheinaccuracyfora
13reasonablysufficienttimebeforetheinformationwasrelieduponsothat,beforethe
14reliance,thememberormanagerreasonablycouldhave:
15 a.Effectedanamendmentundersection347.1044;
16 b.Filedapetitionundersection347.1048;or
17 c.Deliveredtothesecretaryofstateforfilingastatementofchangeunder
18section347.1030orastatementofcorrectionundersection347.1058.
HCSSSSCSSBs3&69 23 19 2.Totheextenttheoperatingagreementofamember-managedlimitedliability
20companyexpresslyrelievesamemberofresponsibilityformaintainingtheaccuracyof
21informationcontainedinrecordsdeliveredonbehalfofthecompanytothesecretaryof
22stateforfilingundersections347.1000to347.1228andimposesthatresponsibilityon
23oneormoreothermembers,theliabilitystatedinsubdivision(2)ofsubsection1ofthis
24sectionappliestothoseothermembersandnottothememberthattheoperating
25agreementrelievesoftheresponsibility.
26 3.Anindividualwhosignsarecordauthorizedorrequiredtobefiledunder
27sections347.1000to347.1228affirmsunderpenaltyofperjurythattheinformation
28statedintherecordisaccurate.
347.1052.1.Tobefiledbythesecretaryofstatepursuanttosections347.1000to
2347.1228,arecordshallbereceivedbythesecretaryofstate,complywithsections
3347.1000to347.1228,andsatisfythefollowing:
4 (1)Thefilingoftherecordshallberequiredorpermittedbysections347.1000to
5347.1228;
6 (2)Therecordshallbephysicallydeliveredinwrittenformunlessandtothe
7extentthesecretaryofstatepermitselectronicdeliveryofrecords;
8 (3)ThewordsintherecordshallbeinEnglish,andnumbersshallbeinArabic
9orRomannumerals,butthenameofanentityneednotbeinEnglishifwrittenin
10EnglishlettersorArabicorRomannumerals;
11 (4)Therecordshallbesignedbyapersonauthorizedorrequiredundersections
12347.1000to347.1228tosigntherecord;
13 (5)Therecordshallstatethenameandcapacity,ifany,ofeachindividualwho
14signedit,eitheronbehalfoftheindividualorthepersonauthorizedorrequiredtosign
15therecord,butneednotcontainaseal,attestation,acknowledgment,orverification.
16 2.Iflawotherthansections347.1000to347.1228prohibitsthedisclosurebythe
17secretaryofstateofinformationcontainedinarecorddeliveredtothesecretaryofstate
18forfiling,thesecretaryofstateshallfiletherecordiftherecordotherwisecomplieswith
19sections347.1000to347.1228butmayredacttheinformation.
20 3.Whenarecordisdeliveredtothesecretaryofstateforfiling,anyfeerequired
21undersections347.1000to347.1228andanyfee,tax,interest,orpenaltyrequiredtobe
22paidundersections347.1000to347.1228orlawotherthansections347.1000to347.1228
23shallbepaidinamannerpermittedbythesecretaryofstateorbythatlaw.
24 4.Thesecretaryofstatemayrequirethatarecorddeliveredinwrittenformbe
25accompaniedbyanidenticalorconformedcopy.
HCSSSSCSSBs3&69 24 26 5.Thesecretaryofstatemayprovideformsforfilingsrequiredorpermittedto
27bemadebysections347.1000to347.1228,but,exceptasotherwiseprovidedin
28subsection6ofthissection,theiruseisnotrequired.
29 6.Thesecretaryofstatemayrequirethatacoversheetforafilingbeonaform
30prescribedbythesecretaryofstate.
347.1054.Exceptasotherwiseprovidedinsection347.1056andsubjectto
2subsection4ofsection347.1058,arecordfiledundersections347.1000to347.1228is
3effective:
4 (1)Onthedateandatthetimeofitsfilingbythesecretaryofstate,asprovided
5insubsection2ofsection347.1060;
6 (2)Onthedateoffilingandatthetimespecifiedintherecordasitseffective
7time,iflaterthanthetimeundersubdivision(1)ofthissection;
8 (3)Ataspecifieddelayedeffectivedateandtime,whichshallnotbemorethan
9ninetydaysafterthedateoffiling;or
10 (4)Ifadelayedeffectivedateisspecified,butnotimeisspecified,at12:01a.m.
11onthedatespecified,whichshallnotbemorethanninetydaysafterthedateoffiling.
347.1056.1.Exceptasotherwiseprovidedinsections347.1182,347.1194,
2347.1206,and347.1218,arecorddeliveredtothesecretaryofstateforfilingmaybe
3withdrawnbeforeittakeseffectbydeliveringtothesecretaryofstateforfilinga
4statementofwithdrawal.
5 2.Astatementofwithdrawalshall:
6 (1)Besignedbyeachpersonthatsignedtherecordbeingwithdrawn,exceptas
7otherwiseagreedbythosepersons;
8 (2)Identifytherecordtobewithdrawn;and
9 (3)Ifsignedbyfewerthanallthepersonsthatsignedtherecordbeing
10withdrawn,statethattherecordiswithdrawninaccordancewiththeagreementofall
11thepersonsthatsignedtherecord.
12 3.Onfilingbythesecretaryofstateofastatementofwithdrawal,theactionor
13transactionevidencedbytheoriginalrecorddoesnottakeeffect.
347.1058.1.Apersononwhosebehalfafiledrecordwasdeliveredtothe
2secretaryofstateforfilingmaycorrecttherecordif:
3 (1)Therecordatthetimeoffilingwasinaccurate;
4 (2)Therecordwasdefectivelysigned;or
5 (3)Theelectronictransmissionoftherecordtothesecretaryofstatewas
6defective.
HCSSSSCSSBs3&69 25 7 2.Tocorrectafiledrecord,apersononwhosebehalftherecordwasdeliveredto
8thesecretaryofstateshalldelivertothesecretaryofstateforfilingastatementof
9correction.
10 3.Astatementofcorrection:
11 (1)Shallnotstateadelayedeffectivedate;
12 (2)Mustbesignedbythepersoncorrectingthefiledrecord;
13 (3)Mustidentifythefiledrecordtobecorrected;
14 (4)Mustspecifytheinaccuracyordefecttobecorrected;and
15 (5)Mustcorrecttheinaccuracyordefect.
16 4.Astatementofcorrectioniseffectiveasoftheeffectivedateofthefiledrecord
17thatitcorrectsexceptforpurposesofsubsection4ofsection347.1004andastopersons
18relyingontheuncorrectedfiledrecordandadverselyaffectedbythecorrection.For
19thosepurposesandastothosepersons,thestatementofcorrectioniseffectivewhen
20filed.
347.1060.1.Thesecretaryofstateshallfilearecorddeliveredtothesecretaryof
2stateforfilingwhichsatisfiessections347.1000to347.1228.Thedutyofthesecretaryof
3stateunderthissectionisministerial.
4 2.Whenthesecretaryofstatefilesarecord,thesecretaryofstateshallrecordit
5asfiledonthedateandatthetimeofitsdelivery.Afterfilingarecord,thesecretaryof
6stateshalldelivertothepersonthatsubmittedtherecordacopyoftherecordwithan
7acknowledgmentofthedateandtimeoffilingand,inthecaseofastatementofdenial,
8alsotothelimitedliabilitycompanytowhichthestatementpertains.
9 3.Ifthesecretaryofstaterefusestofilearecord,thesecretaryofstateshall,not
10laterthanfifteenbusinessdaysaftertherecordisdelivered:
11 (1)Returntherecordornotifythepersonthatsubmittedtherecordofthe
12refusal;and
13 (2)Provideabriefexplanationinarecordofthereasonfortherefusal.
14 4.Ifthesecretaryofstaterefusestofilearecord,thepersonthatsubmittedthe
15recordmaypetitionacourtofcompetentjurisdictiontocompelfilingoftherecord.The
16recordandtheexplanationofthesecretaryofstateoftherefusaltofileshallbeattached
17tothepetition.Thecourtmaydecidethematterinasummaryproceeding.
18 5.Thefilingoforrefusaltofilearecorddoesnot:
19 (1)Affectthevalidityorinvalidityoftherecordinwholeorinpart;or
20 (2)Createapresumptionthattheinformationcontainedintherecordiscorrect
21orincorrect.
HCSSSSCSSBs3&69 26 22 6.Exceptasotherwiseprovidedbysection347.1036orbylawotherthan
23sections347.1000to347.1228,thesecretaryofstatemaydeliveranyrecordtoaperson
24bydeliveringit:
25 (1)Inpersontothepersonthatsubmittedit;
26 (2)Totheaddressoftheperson'sregisteredagent;
27 (3)Totheprincipalofficeoftheperson;or
28 (4)Toanotheraddressthepersonprovidestothesecretaryofstatefordelivery.
347.1062.1.Onrequestofanyperson,thesecretaryofstateshallissuea
2certificateofgoodstandingforalimitedliabilitycompanyoracertificateofregistration
3foraregisteredforeignlimitedliabilitycompany.
4 2.Acertificateundersubsection1ofthissectionshallstate:
5 (1)Thelimitedliabilitycompany'snameortheregisteredforeignlimited
6liabilitycompany'snameusedinthisstate;
7 (2)Inthecaseofalimitedliabilitycompany:
8 (a)Thatacertificateoforganizationhasbeenfiledandhastakeneffect;
9 (b)Thedatethecertificatebecameeffective;
10 (c)Theperiodofthecompany'sdurationiftherecordsofthesecretaryofstate
11reflectthatitsperiodofdurationislessthanperpetual;and
12 (d)That:
13 a.Nostatementofdissolution,statementofadministrativedissolution,or
14statementofterminationhasbeenfiled;
15 b.Therecordsofthesecretaryofstatedonototherwisereflectthatthecompany
16hasbeendissolvedorterminated;and
17 c.Aproceedingisnotpendingundersection347.1122;
18 (3)Inthecaseofaregisteredforeignlimitedliabilitycompany,thatitis
19registeredtodobusinessinthisstate;
20 (4)Thatallfees,taxes,interest,andpenaltiesowedtothisstatebythelimited
21liabilitycompanyorforeignlimitedliabilitycompanyandcollectedthroughthe
22secretaryofstatehavebeenpaid,if:
23 (a)Paymentisreflectedintherecordsofthesecretaryofstate;and
24 (b)Nonpaymentaffectsthegoodstandingorregistrationofthecompanyor
25foreigncompany;
26 (5)Thatthemostrecentannualreportrequiredbysection347.1064hasbeen
27deliveredtothesecretaryofstateforfiling;and
28 (6)Otherfactsreflectedintherecordsofthesecretaryofstatepertainingtothe
29limitedliabilitycompanyorforeignlimitedliabilitycompanywhichtheperson
30requestingthecertificatereasonablyrequests.
HCSSSSCSSBs3&69 27 31 3.Subjecttoanyqualificationstatedinthecertificate,acertificateissuedbythe
32secretaryofstateundersubsection1ofthissectionmaybereliedonasconclusive
33evidenceofthefactsstatedinthecertificate.
347.1064.1.Alimitedliabilitycompanyorregisteredforeignlimitedliability
2companyshalldelivertothesecretaryofstateforfilinganannualreportthatstates:
3 (1)Thenameofthecompanyorforeigncompany;
4 (2)Thenameandstreetandmailingaddressesofitsregisteredagentinthis
5state;
6 (3)Thestreetandmailingaddressesofitsprincipaloffice;
7 (4)Ifthecompanyismembermanaged,thenameofatleastonemember;
8 (5)Ifthecompanyismanagermanaged,thenameofatleastonemanager;and
9 (6)Inthecaseofaforeigncompany,itsjurisdictionofformationandany
10alternatenameadoptedundersubsection1ofsection347.1150.
11 2.Informationintheannualreportshallbecurrentasofthedatethereportis
12signedbythelimitedliabilitycompanyorregisteredforeignlimitedliabilitycompany.
13 3.Thefirstannualreportshallbedeliveredtothesecretaryofstateforfiling
14afterJanuaryfirstandbeforeAprilfirstoftheyearfollowingthecalendaryearin
15whichthelimitedliabilitycompany'scertificateoforganizationbecameeffectiveorthe
16registeredforeignlimitedliabilitycompanyregisteredtodobusinessinthisstate.
17Subsequentannualreportsshallbedeliveredtothesecretaryofstateforfilingafter
18JanuaryfirstandbeforeAprilfirstofeachcalendaryearthereafter.
19 4.Ifanannualreportdoesnotcontaintheinformationrequiredbythissection,
20thesecretaryofstatepromptlyshallnotifythereportinglimitedliabilitycompanyor
21registeredforeignlimitedliabilitycompanyinarecordandreturnthereportfor
22correction.
23 5.Ifanannualreportcontainsthenameoraddressofaregisteredagentwhich
24differsfromtheinformationshownintherecordsofthesecretaryofstateimmediately
25beforethereportbecomeseffective,thedifferinginformationinthereportisconsidered
26astatementofchangeundersection347.1030.
347.1066.1.Amemberisnotanagentofalimitedliabilitycompanysolelyby
2reasonofbeingamember.
3 2.Aperson'sstatusasamemberdoesnotpreventorrestrictlawotherthan
4sections347.1000to347.1228fromimposingliabilityonalimitedliabilitycompany
5becauseoftheperson'sconduct.
347.1068.1.Alimitedliabilitycompanymaydelivertothesecretaryofstatefor
2filingastatementofauthority.Thestatement:
HCSSSSCSSBs3&69 28 3 (1)Mustincludethenameofthecompanyandthenameandstreetandmailing
4addressesofitsregisteredagent;
5 (2)Withrespecttoanypositionthatexistsinorwithrespecttothecompany,
6maystatetheauthority,orlimitationsontheauthority,ofallpersonsholdingthe
7positionto:
8 (a)Signaninstrumenttransferringrealpropertyheldinthenameofthe
9company;or
10 (b)Enterintoothertransactionsonbehalfof,orotherwiseactfororbind,the
11company;and
12 (3)Maystatetheauthority,orlimitationsontheauthority,ofaspecificperson
13to:
14 (a)Signaninstrumenttransferringrealpropertyheldinthenameofthe
15company;or
16 (b)Enterintoothertransactionsonbehalfof,orotherwiseactfororbind,the
17company.
18 2.Toamendorcancelastatementofauthorityfiledbythesecretaryofstate,a
19limitedliabilitycompanyshalldelivertothesecretaryofstateforfilinganamendment
20orcancellationstating:
21 (1)Thenameofthecompany;
22 (2)Thenameandstreetandmailingaddressesofthecompany'sregistered
23agent;
24 (3)Thedatethestatementbeingaffectedbecameeffective;and
25 (4)Thecontentsoftheamendmentoradeclarationthatthestatementis
26cancelled.
27 3.Astatementofauthorityaffectsonlythepowerofapersontobindalimited
28liabilitycompanytopersonsthatarenotmembers.
29 4.Subjecttosubsection3ofthissectionandsubsection4ofsection347.1004,
30andexceptasotherwiseprovidedinsubsections6,7,and8ofthissection,alimitationon
31theauthorityofapersonorapositioncontainedinaneffectivestatementofauthorityis
32notbyitselfevidenceofanyperson'sknowledgeornoticeofthelimitation.
33 5.Subjecttosubsection3ofthissection,agrantofauthoritynotpertainingto
34transfersofrealpropertyandcontainedinaneffectivestatementofauthorityis
35conclusiveinfavorofapersonthatgivesvalueinrelianceonthegrant,excepttothe
36extentthatwhenthepersongivesvalue:
37 (1)Thepersonhasknowledgetothecontrary;
38 (2)Thestatementhasbeencancelledorrestrictivelyamendedundersubsection
392ofthissection;or
HCSSSSCSSBs3&69 29 40 (3)Alimitationonthegrantiscontainedinanotherstatementofauthoritythat
41becameeffectiveafterthestatementcontainingthegrantbecameeffective.
42 6.Subjecttosubsection3ofthissection,aneffectivestatementofauthoritythat
43grantsauthoritytotransferrealpropertyheldinthenameofthelimitedliability
44company,acertifiedcopyofwhichstatementisrecordedintheofficeforrecording
45transfersoftherealproperty,isconclusiveinfavorofapersonthatgivesvaluein
46relianceonthegrantwithoutknowledgetothecontrary,excepttotheextentthatwhen
47thepersongivesvalue:
48 (1)Thestatementhasbeencancelledorrestrictivelyamendedundersubsection
492ofthissection,andacertifiedcopyofthecancellationorrestrictiveamendmenthas
50beenrecordedintheofficeforrecordingtransfersoftherealproperty;or
51 (2)Alimitationonthegrantiscontainedinanotherstatementofauthoritythat
52becameeffectiveafterthestatementcontainingthegrantbecameeffective,anda
53certifiedcopyofthelater-effectivestatementisrecordedintheofficeforrecording
54transfersoftherealproperty.
55 7.Subjecttosubsection3ofthissection,ifacertifiedcopyofaneffective
56statementcontainingalimitationontheauthoritytotransferrealpropertyheldinthe
57nameofalimitedliabilitycompanyisrecordedintheofficeforrecordingtransfersof
58thatrealproperty,allpersonsaredeemedtoknowofthelimitation.
59 8.Subjecttosubsection9ofthissection,aneffectivestatementofdissolutionor
60terminationisacancellationofanyfiledstatementofauthorityforthepurposesof
61subsection6ofthissectionandisalimitationonauthorityforthepurposesof
62subsection7ofthissection.
63 9.Afterastatementofdissolutionbecomeseffective,alimitedliabilitycompany
64maydelivertothesecretaryofstateforfilingand,ifappropriate,mayrecorda
65statementofauthoritythatisdesignatedasapost-dissolutionstatementofauthority.
66Thestatementoperatesasprovidedinsubsections6and7ofthissection.
67 10.Unlessearliercancelled,aneffectivestatementofauthorityiscancelledby
68operationoflawfiveyearsafterthedateonwhichthestatement,oritsmostrecent
69amendment,becomeseffective.Thiscancellationoperateswithoutneedforany
70recordingundersubsection6or7ofthissection.
71 11.Aneffectivestatementofdenialoperatesasarestrictiveamendmentunder
72thissectionandmayberecordedbycertifiedcopyforpurposesofsubdivision(1)of
73subsection6ofthissection.
347.1070.Apersonnamedinafiledstatementofauthoritygrantingthatperson
2authoritymaydelivertothesecretaryofstateforfilingastatementofdenialthat:
HCSSSSCSSBs3&69 30 3 (1)Providesthenameofthelimitedliabilitycompanyandthecaptionofthe
4statementofauthoritytowhichthestatementofdenialpertains;and
5 (2)Deniesthegrantofauthority.
347.1072.1.Adebt,obligation,orotherliabilityofalimitedliabilitycompanyis
2solelythedebt,obligation,orotherliabilityofthecompany.Amemberormanageris
3notpersonallyliable,directlyorindirectly,bywayofcontributionorotherwise,fora
4debt,obligation,orotherliabilityofthecompanysolelybyreasonofbeingoractingasa
5memberormanager.Thissubsectionappliesregardlessofthedissolutionofthe
6company.
7 2.Thefailureofalimitedliabilitycompanytoobserveformalitiesrelatingtothe
8exerciseofitspowersormanagementofitsactivitiesandaffairsisnotagroundfor
9imposingliabilityonamemberormanagerforadebt,obligation,orotherliabilityof
10thecompany.
347.1074.1.Ifalimitedliabilitycompanyistohaveonlyonememberupon
2formation,thepersonbecomesamemberasagreedbythatpersonandtheorganizerof
3thecompany.Thatpersonandtheorganizermaybe,butneednotbe,differentpersons.
4Ifdifferent,theorganizeractsonbehalfoftheinitialmember.
5 2.Ifalimitedliabilitycompanyistohavemorethanonememberupon
6formation,thosepersonsbecomemembersasagreedbythepersonsbeforethe
7formationofthecompany.Theorganizeractsonbehalfofthepersonsinformingthe
8companyandmaybe,butneednotbe,oneofthepersons.
9 3.Afterformationofalimitedliabilitycompany,apersonbecomesamember:
10 (1)Asprovidedintheoperatingagreement;
11 (2)Astheresultofatransactioneffectiveundersections347.1164to347.1222;
12 (3)Withtheaffirmativevoteorconsentofallthemembers;or
13 (4)Asprovidedinsubdivision(3)ofsubsection1ofsection347.1108.
14 4.Apersonmaybecomeamemberwithout:
15 (1)Acquiringatransferableinterest;or
16 (2)Makingorbeingobligatedtomakeacontributiontothelimitedliability
17company.
347.1076.Acontributionmayconsistofpropertytransferredto,services
2performedfor,oranotherbenefitprovidedtothelimitedliabilitycompanyoran
3agreementtotransferpropertyto,performservicesfor,orprovideanotherbenefitto
4thecompany.
347.1078.1.Aperson'sobligationtomakeacontributiontoalimitedliability
2companyisnotexcusedbytheperson'sdeath,disability,termination,orotherinability
3toperformpersonally.
HCSSSSCSSBs3&69 31 4 2.Ifapersondoesnotfulfillanobligationtomakeacontributionotherthan
5moneys,thepersonisobligatedattheoptionofthelimitedliabilitycompanyto
6contributemoneysequaltothevalueofthepartofthecontributionwhichhasnotbeen
7made.
8 3.Theobligationofapersontomakeacontributionmaybecompromisedonly
9bytheaffirmativevoteorconsentofallthemembers.Ifacreditorofalimitedliability
10companyextendscreditorotherwiseactsinrelianceonanobligationdescribedin
11subsection1ofthissectionwithoutknowledgeornoticeofacompromiseunderthis
12subsection,thecreditormayenforcetheobligation.
347.1080.1.Anydistributionmadebyalimitedliabilitycompanybeforeits
2dissolutionandwindingupshallbeinequalsharesamongmembersandpersons
3dissociatedasmembers,excepttotheextentnecessarytocomplywithatransfer
4effectiveundersection347.1096orchargingorderineffectundersection347.1098.
5 2.Apersonhasarighttoadistributionbeforethedissolutionandwindingupof
6alimitedliabilitycompanyonlyifthecompanydecidestomakeaninterimdistribution.
7Aperson'sdissociationdoesnotentitlethepersontoadistribution.
8 3.Apersondoesnothavearighttodemandorreceiveadistributionfroma
9limitedliabilitycompanyinanyformotherthanmoneys.Exceptasotherwiseprovided
10insubsection4ofsection347.1120,acompanymaydistributeanassetinkindonlyif
11eachpartoftheassetisfungiblewitheachotherpartandeachpersonreceivesa
12percentageoftheassetequalinvaluetotheperson'sshareofdistributions.
13 4.Ifamemberortransfereebecomesentitledtoreceiveadistribution,the
14memberortransfereehasthestatusof,andisentitledtoallremediesavailableto,a
15creditorofthelimitedliabilitycompanywithrespecttothedistribution.However,the
16company'sobligationtomakeadistributionissubjecttooffsetforanyamountowedto
17thecompanybythememberorapersondissociatedasamemberonwhoseaccountthe
18distributionismade.
347.1082.1.Alimitedliabilitycompanyshallnotmakeadistribution,including
2adistributionundersection347.1120,ifafterthedistribution:
3 (1)Thecompanywouldnotbeabletopayitsdebtsastheybecomedueinthe
4ordinarycourseofthecompany'sactivitiesandaffairs;or
5 (2)Thecompany'stotalassetswouldbelessthanthesumofitstotalliabilities
6plustheamountthatwouldbeneeded,ifthecompanyweretobedissolvedandwound
7upatthetimeofthedistribution,tosatisfythepreferentialrightsupondissolutionand
8windingupofmembersandtransfereeswhosepreferentialrightsaresuperiortothe
9rightsofpersonsreceivingthedistribution.
HCSSSSCSSBs3&69 32 10 2.Alimitedliabilitycompanymaybaseadeterminationthatadistributionis
11notprohibitedundersubsection1ofthissectionon:
12 (1)Financialstatementspreparedonthebasisofaccountingpracticesand
13principlesthatarereasonableinthecircumstances;or
14 (2)Afairvaluationorothermethodthatisreasonableunderthecircumstances.
15 3.Exceptasotherwiseprovidedinsubsection5ofthissection,theeffectofa
16distributionundersubsection1ofthissectionismeasured:
17 (1)Inthecaseofadistributionasdefinedinparagraph(a)ofsubdivision(4)of
18section347.1002,asoftheearlierof:
19 (a)Thedatemoneysorotherpropertyistransferredordebtisincurredbythe
20limitedliabilitycompany;or
21 (b)Thedatethepersonentitledtothedistributionceasestoowntheinterestor
22rightbeingacquiredbythecompanyinreturnforthedistribution;
23 (2)Inthecaseofanyotherdistributionofindebtedness,asofthedatethe
24indebtednessisdistributed;and
25 (3)Inallothercases,asofthedate:
26 (a)Thedistributionisauthorized,ifthepaymentoccursnotlaterthanone
27hundredtwentydaysafterthatdate;or
28 (b)Thepaymentismade,ifthepaymentoccursmorethanonehundredtwenty
29daysafterthedistributionisauthorized.
30 4.Alimitedliabilitycompany'sindebtednesstoamemberortransfereeincurred
31byreasonofadistributionmadeinaccordancewiththissectionisatparitywiththe
32company'sindebtednesstoitsgeneral,unsecuredcreditors,excepttotheextent
33subordinatedbyagreement.
34 5.Alimitedliabilitycompany'sindebtedness,includingindebtednessissuedasa
35distribution,isnotaliabilityforpurposesofsubsection1ofthissectionifthetermsof
36theindebtednessprovidethatpaymentofprincipalandinterestismadeonlyifandto
37theextentthatpaymentofadistributioncouldthenbemadeunderthissection.Ifthe
38indebtednessisissuedasadistribution,eachpaymentofprincipalorinterestistreated
39asadistribution,theeffectofwhichismeasuredonthedatethepaymentismade.
40 6.Inmeasuringtheeffectofadistributionundersection347.1120,theliabilities
41ofadissolvedlimitedliabilitycompanydonotincludeanyclaimthathasbeendisposed
42ofundersection347.1114,347.1116,or347.1118.
347.1084.1.Exceptasotherwiseprovidedinsubsection2ofthissection,ifa
2memberofamember-managedlimitedliabilitycompanyormanagerofamanager-
3managedlimitedliabilitycompanyconsentstoadistributionmadeinviolationof
4section347.1082andinconsentingtothedistributionfailstocomplywithsection
HCSSSSCSSBs3&69 33 5347.1090,thememberormanagerispersonallyliabletothecompanyfortheamountof
6thedistributionwhichexceedstheamountthatcouldhavebeendistributedwithoutthe
7violationofsection347.1082.
8 2.Totheextenttheoperatingagreementofamember-managedlimitedliability
9companyexpresslyrelievesamemberoftheauthorityandresponsibilitytoconsentto
10distributionsandimposesthatauthorityandresponsibilityononeormoreother
11members,theliabilitystatedinsubsection1ofthissectionappliestotheothermembers
12andnotthememberthattheoperatingagreementrelievesoftheauthorityand
13responsibility.
14 3.Apersonthatreceivesadistributionknowingthatthedistributionviolated
15section347.1082ispersonallyliabletothelimitedliabilitycompanybutonlytothe
16extentthatthedistributionreceivedbythepersonexceededtheamountthatcouldhave
17beenproperlypaidundersection347.1082.
18 4.Apersonagainstwhichanactioniscommencedbecausethepersonisliable
19undersubsection1ofthissectionmay:
20 (1)Impleadanyotherpersonthatisliableundersubsection1ofthissectionand
21seektoenforcearightofcontributionfromtheperson;and
22 (2)Impleadanypersonthatreceivedadistributioninviolationofsubsection3of
23thissectionandseektoenforcearightofcontributionfromthepersonintheamount
24thepersonreceivedinviolationofsubsection3ofthissection.
25 5.Anactionunderthissectionisbarredunlesscommencednotlaterthantwo
26yearsafterthedistribution.
347.1086.1.Alimitedliabilitycompanyisamember-managedlimitedliability
2companyunlesstheoperatingagreement:
3 (1)Expresslyprovidesthat:
4 (a)Thecompanyisorwillbe"manager-managed";
5 (b)Thecompanyisorwillbe"managedbymanagers";or
6 (c)Managementofthecompanyisorwillbe"vestedinmanagers";or
7 (2)Includeswordsofsimilarimport.
8 2.Inamember-managedlimitedliabilitycompany,thefollowingrulesapply:
9 (1)Exceptasexpresslyprovidedinsections347.1000to347.1228,the
10managementandconductofthecompanyarevestedinthemembers;
11 (2)Eachmemberhasequalrightsinthemanagementandconductofthe
12company'sactivitiesandaffairs;
13 (3)Adifferencearisingamongmembersastoamatterintheordinarycourseof
14theactivitiesandaffairsofthecompanymaybedecidedbyamajorityofthemembers;
15 (4)Theaffirmativevoteorconsentofallthemembersisrequiredto:
HCSSSSCSSBs3&69 34 16 (a)Undertakeanactoutsidetheordinarycourseoftheactivitiesandaffairsof
17thecompany;or
18 (b)Amendtheoperatingagreement.
19 3.Inamanager-managedlimitedliabilitycompany,thefollowingrulesapply:
20 (1)Exceptasexpresslyprovidedinsections347.1000to347.1228,anymatter
21relatingtotheactivitiesandaffairsofthecompanyisdecidedexclusivelybythe
22manager,or,ifthereismorethanonemanager,byamajorityofthemanagers;
23 (2)Eachmanagerhasequalrightsinthemanagementandconductofthe
24company'sactivitiesandaffairs;
25 (3)Theaffirmativevoteorconsentofallmembersisrequiredto:
26 (a)Undertakeanactoutsidetheordinarycourseofthecompany'sactivitiesand
27affairs;or
28 (b)Amendtheoperatingagreement;
29 (4)Amanagermaybechosenatanytimebytheaffirmativevoteorconsentofa
30majorityofthemembersandremainsamanageruntilasuccessorhasbeenchosen,
31unlessthemanageratanearliertimeresigns,isremoved,ordies,or,inthecaseofa
32managerthatisnotanindividual,terminates.Amanagermayberemovedatanytime
33bytheaffirmativevoteorconsentofamajorityofthememberswithoutnoticeorcause;
34 (5)Apersonneednotbeamembertobeamanager,butthedissociationofa
35memberthatisalsoamanagerremovesthepersonasamanager.Ifapersonthatis
36bothamanagerandamemberceasestobeamanager,thatcessationdoesnotbyitself
37dissociatethepersonasamember;
38 (6)Aperson'sceasingtobeamanagerdoesnotdischargeanydebt,obligation,
39orotherliabilitytothelimitedliabilitycompanyormemberswhichthepersonincurred
40whileamanager.
41 4.Anactionrequiringthevoteorconsentofmembersundersections347.1000to
42347.1228maybetakenwithoutameeting,andamembermayappointaproxyorother
43agenttovote,consent,orotherwiseactforthememberbysigninganappointingrecord,
44personallyorbythemember'sagent.
45 5.Thedissolutionofalimitedliabilitycompanydoesnotaffecttheapplicability
46ofthissection.However,apersonthatwrongfullycausesdissolutionofthecompany
47losestherighttoparticipateinmanagementasamemberandamanager.
48 6.Alimitedliabilitycompanyshallreimburseamemberforanadvancetothe
49companybeyondtheamountofcapitalthememberagreedtocontribute.
50 7.Apaymentoradvancemadebyamemberwhichgivesrisetoalimited
51liabilitycompanyobligationundersubsection6ofthissectionorsubsection1ofsection
HCSSSSCSSBs3&69 35 52347.1088constitutesaloantothecompanywhichaccruesinterestfromthedateofthe
53paymentoradvance.
54 8.Amemberisnotentitledtoremunerationforservicesperformedfora
55member-managedlimitedliabilitycompany,exceptforreasonablecompensationfor
56servicesrenderedinwindinguptheactivitiesofthecompany.
347.1088.1.Alimitedliabilitycompanyshallreimburseamemberofa
2member-managedcompanyorthemanagerofamanager-managedcompanyforany
3paymentmadebythememberormanagerinthecourseofthemember'sormanager's
4activitiesonbehalfofthecompany,ifthememberormanagercompliedwithsections
5347.1082,347.1086,and347.1090inmakingthepayment.
6 2.Alimitedliabilitycompanyshallindemnifyandholdharmlessapersonwith
7respecttoanyclaimordemandagainstthepersonandanydebt,obligation,orother
8liabilityincurredbythepersonbyreasonoftheperson'sformerorpresentcapacityasa
9memberormanager,iftheclaim,demand,debt,obligation,orotherliabilitydoesnot
10arisefromtheperson'sbreachofsection347.1082,347.1086,or347.1090.
11 3.Intheordinarycourseofitsactivitiesandaffairs,alimitedliabilitycompany
12mayadvancereasonableexpenses,includingattorney'sfeesandcosts,incurredbya
13personinconnectionwithaclaimordemandagainstthepersonbyreasonofthe
14person'sformerorpresentcapacityasamemberormanager,ifthepersonpromisesto
15repaythecompanyifthepersonultimatelyisdeterminednottobeentitledtobe
16indemnifiedundersubsection2ofthissection.
17 4.Alimitedliabilitycompanymaypurchaseandmaintaininsuranceonbehalf
18ofamemberormanageragainstliabilityassertedagainstorincurredbythememberor
19managerinthatcapacityorarisingfromthatstatusevenif,undersubdivision(7)of
20subsection3ofsection347.1008,theoperatingagreementcouldnoteliminateorlimit
21theperson'sliabilitytothecompanyfortheconductgivingrisetotheliability.
347.1090.1.Amemberofamember-managedlimitedliabilitycompanyowesto
2thecompanyand,subjecttosection347.1128,theothermembersthedutiesofloyalty
3andcarestatedinsubsections2and3ofthissection.
4 2.Thefiduciarydutyofloyaltyofamemberinamember-managedlimited
5liabilitycompanyincludestheduties:
6 (1)Toaccounttothecompanyandholdastrusteeforitanyproperty,profit,or
7benefitderivedbythemember:
8 (a)Intheconductorwindingupofthecompany'sactivitiesandaffairs;
9 (b)Fromausebythememberofthecompany'sproperty;or
10 (c)Fromtheappropriationofacompanyopportunity;
HCSSSSCSSBs3&69 36 11 (2)Torefrainfromdealingwiththecompanyintheconductorwindingupof
12thecompany'sactivitiesandaffairsasoronbehalfofapersonhavinganinterest
13adversetothecompany;and
14 (3)Torefrainfromcompetingwiththecompanyintheconductofthecompany's
15activitiesandaffairsbeforethedissolutionofthecompany.
16 3.Thedutyofcareofamemberofamember-managedlimitedliabilitycompany
17intheconductorwindingupofthecompany'sactivitiesandaffairsistorefrainfrom
18engagingingrosslynegligentorrecklessconduct,willfulorintentionalmisconduct,or
19knowingviolationoflaw.
20 4.Amembershalldischargethedutiesandobligationsundersections347.1000
21to347.1228orundertheoperatingagreementandexerciseanyrightsconsistentlywith
22thecontractualobligationofgoodfaithandfairdealing.
23 5.Amemberdoesnotviolateadutyorobligationundersections347.1000to
24347.1228orundertheoperatingagreementsolelybecausethemember'sconduct
25furthersthemember'sowninterest.
26 6.Allthemembersofamember-managedlimitedliabilitycompanyora
27manager-managedlimitedliabilitycompanymayauthorizeorratify,afterfull
28disclosureofallmaterialfacts,aspecificactortransactionthatotherwisewould
29violatethedutyofloyalty.
30 7.Itisadefensetoaclaimundersubdivision(2)ofsubsection2ofthissection
31andanycomparableclaiminequityoratcommonlawthatthetransactionwasfairto
32thelimitedliabilitycompany.
33 8.If,aspermittedbysubsection6orsubdivision(6)ofsubsection9ofthis
34sectionortheoperatingagreement,amemberentersintoatransactionwiththelimited
35liabilitycompanywhichotherwisewouldbeprohibitedbysubdivision(2)ofsubsection
362ofthissection,themember'srightsandobligationsarisingfromthetransactionare
37thesameasthoseofapersonthatisnotamember.
38 9.Inamanager-managedlimitedliabilitycompany,thefollowingrulesapply:
39 (1)Subsections1,2,3,and7ofthissectionapplytothemanagerormanagers
40andnotthemembers;
41 (2)Thedutystatedundersubdivision(3)ofsubsection2ofthissectioncontinues
42untilwindingupiscompleted;
43 (3)Subsection4ofthissectionappliestomanagersandmembers;
44 (4)Subsection5ofthissectionappliesonlytomembers;
45 (5)Thepowertoratifyundersubsection6ofthissectionappliesonlytothe
46members;
HCSSSSCSSBs3&69 37 47 (6)Subjecttosubsection4ofthissection,amemberdoesnothaveanydutyto
48thecompanyortoanyothermembersolelybyreasonofbeingamember.
347.1092.1.Inamember-managedlimitedliabilitycompany,thefollowingrules
2apply:
3 (1)Onreasonablenotice,amembermayinspectandcopyduringregular
4businesshours,atareasonablelocationspecifiedbythecompany,anyrecord
5maintainedbythecompanyregardingthecompany'sactivities,affairs,financial
6condition,andothercircumstances,totheextenttheinformationismaterialtothe
7member'srightsanddutiesundertheoperatingagreementorsections347.1000to
8347.1228;
9 (2)Thecompanyshallfurnishtoeachmember:
10 (a)Withoutdemand,anyinformationconcerningthecompany'sactivities,
11affairs,financialcondition,andothercircumstanceswhichthecompanyknowsandis
12materialtotheproperexerciseofthemember'srightsanddutiesundertheoperating
13agreementorsections347.1000to347.1228,excepttotheextentthecompanycan
14establishthatitreasonablybelievesthememberalreadyknowstheinformation;and
15 (b)Ondemand,anyotherinformationconcerningthecompany'sactivities,
16affairs,financialcondition,andothercircumstances,excepttotheextentthedemand
17fortheinformationdemandedisunreasonableorotherwiseimproperunderthe
18circumstances;
19 (3)Thedutytofurnishinformationundersubdivision(2)ofthissubsectionalso
20appliestoeachmembertotheextentthememberknowsanyoftheinformation
21describedinsubdivision(2)ofthissubsection.
22 2.Inamanager-managedlimitedliabilitycompany,thefollowingrulesapply:
23 (1)Theinformationalrightsstatedinsubsection1ofthissectionandtheduty
24statedinsubdivision(3)ofsubsection1ofthissectionapplytothemanagersandnotthe
25members;
26 (2)Duringregularbusinesshoursandatareasonablelocationspecifiedbythe
27company,amembermayinspectandcopyinformationregardingtheactivities,affairs,
28financialcondition,andothercircumstancesofthecompanyasisjustandreasonableif:
29 (a)Thememberseekstheinformationforapurposereasonablyrelatedtothe
30member'sinterestasamember;
31 (b)Themembermakesademandinarecordreceivedbythecompany,
32describingwithreasonableparticularitytheinformationsoughtandthepurposefor
33seekingtheinformation;and
34 (c)Theinformationsoughtisdirectlyconnectedtothemember'spurpose;
HCSSSSCSSBs3&69 38 35 (3)Notlaterthantendaysafterreceivingademandpursuanttoparagraph(b)
36ofsubdivision(2)ofthissubsection,thecompanyshallinforminarecordthemember
37thatmadethedemandof:
38 (a)Whatinformationthecompanywillprovideinresponsetothedemandand
39whenandwherethecompanywillprovidetheinformation;and
40 (b)Thecompany'sreasonsfordeclining,ifthecompanydeclinestoprovideany
41demandedinformation;
42 (4)Whensections347.1000to347.1228oranoperatingagreementprovidesfora
43membertovoteonorgiveorwithholdconsenttoamatter,beforethevoteiscastor
44consentisgivenorwithheld,thecompanyshall,withoutdemand,providethemember
45withallinformationthatisknowntothecompanyandismaterialtothemember's
46decision.
47 3.Subjecttosubsection8ofthissection,ontendays'demandmadeinarecord
48receivedbyalimitedliabilitycompany,apersondissociatedasamembermayhave
49accesstotheinformationtowhichthepersonwasentitledwhileamemberif:
50 (1)Theinformationpertainstotheperiodduringwhichthepersonwasa
51member;
52 (2)Thepersonseekstheinformationingoodfaith;and
53 (3)Thepersonsatisfiestherequirementsimposedonamemberbysubdivision
54(2)ofsubsection2ofthissection.
55 4.Alimitedliabilitycompanyshallrespondtoademandmadepursuantto
56subsection3ofthissectioninthemannerprovidedinsubdivision(3)ofsubsection2of
57thissection.
58 5.Alimitedliabilitycompanymaychargeapersonthatmakesademandunder
59thissectionthereasonablecostsofcopying,limitedtothecostsoflaborandmaterial.
60 6.Amemberorpersondissociatedasamembermayexercisetherightsunder
61thissectionthroughanagentor,inthecaseofanindividualunderlegaldisability,a
62legalrepresentative.Anyrestrictionorconditionimposedbytheoperatingagreement
63orundersubsection8ofthissectionappliesbothtotheagentorlegalrepresentativeand
64tothememberorpersondissociatedasamember.
65 7.Subjecttosection347.1100,therightsunderthissectiondonotextendtoa
66personastransferee.
67 8.Inadditiontoanyrestrictionorconditionstatedinitsoperatingagreement,a
68limitedliabilitycompany,asamatterwithintheordinarycourseofitsactivitiesand
69affairs,mayimposereasonablerestrictionsandconditionsonaccesstoanduseof
70informationtobefurnishedunderthissection,includingdesignatinginformation
71confidentialandimposingnondisclosureandsafeguardingobligationsontherecipient.
HCSSSSCSSBs3&69 39 72Inadisputeconcerningthereasonablenessofarestrictionunderthissubsection,the
73companyhastheburdenofprovingreasonableness.
347.1094.Atransferableinterestispersonalproperty.
347.1096.1.Subjecttosubsection6ofsection347.1098,atransfer,inwholeorin
2part,ofatransferableinterest:
3 (1)Ispermissible;
4 (2)Doesnotbyitselfcauseaperson'sdissociationasamemberoradissolution
5andwindingupofthelimitedliabilitycompany'sactivitiesandaffairs;and
6 (3)Subjecttosection347.1100,doesnotentitlethetransfereeto:
7 (a)Participateinthemanagementorconductofthecompany'sactivitiesand
8affairs;or
9 (b)Exceptasotherwiseprovidedinsubsection3ofthissection,haveaccessto
10recordsorotherinformationconcerningthecompany'sactivitiesandaffairs.
11 2.Atransfereehastherighttoreceive,inaccordancewiththetransfer,
12distributionstowhichthetransferorwouldotherwisebeentitled.
13 3.Inadissolutionandwindingupofalimitedliabilitycompany,atransfereeis
14entitledtoanaccountofthecompany'stransactionsonlyfromthedateofdissolution.
15 4.Atransferableinterestmaybeevidencedbyacertificateoftheinterestissued
16byalimitedliabilitycompanyinarecord,and,subjecttothissection,theinterest
17representedbythecertificatemaybetransferredbyatransferofthecertificate.
18 5.Alimitedliabilitycompanyneednotgiveeffecttoatransferee'srightsunder
19thissectionuntilthecompanyknowsorhasnoticeofthetransfer.
20 6.Atransferofatransferableinterestinviolationofarestrictionontransfer
21containedintheoperatingagreementisineffectiveiftheintendedtransfereehas
22knowledgeornoticeoftherestrictionatthetimeoftransfer.
23 7.Exceptasotherwiseprovidedinparagraph(b)ofsubdivision(5)ofsection
24347.1104,ifamembertransfersatransferableinterest,thetransferorretainstherights
25ofamemberotherthanthetransferableinteresttransferredandretainsalltheduties
26andobligationsofamember.
27 8.Ifamembertransfersatransferableinteresttoapersonthatbecomesa
28memberwithrespecttothetransferredinterest,thetransfereeisliableforthe
29member'sobligationsundersections347.1078and347.1084knowntothetransferee
30whenthetransfereebecomesamember.
347.1098.1.Onapplicationbyajudgmentcreditorofamemberortransferee,a
2courtmayenterachargingorderagainstthetransferableinterestofthejudgment
3debtorfortheunsatisfiedamountofthejudgment.Exceptasotherwiseprovidedin
4subsection6ofthissection,achargingorderconstitutesalienonajudgmentdebtor's
HCSSSSCSSBs3&69 40 5transferableinterestandrequiresthelimitedliabilitycompanytopayovertotheperson
6towhichthechargingorderwasissuedanydistributionthatotherwisewouldbepaidto
7thejudgmentdebtor.
8 2.Totheextentnecessarytoeffectuatethecollectionofdistributionspursuantto
9achargingorderineffectundersubsection1ofthissection,thecourtmay:
10 (1)Appointareceiverofthedistributionssubjecttothechargingorder,withthe
11powertomakeallinquiriesthejudgmentdebtormighthavemade;and
12 (2)Makeallotherordersnecessarytogiveeffecttothechargingorder.
13 3.Uponashowingthatdistributionsunderachargingorderwillnotpaythe
14judgmentdebtwithinareasonabletime,thecourtmayforeclosethelienandorderthe
15saleofthetransferableinterest.Exceptasotherwiseprovidedinsubsection6ofthis
16section,thepurchaserattheforeclosuresaleobtainsonlythetransferableinterest,does
17nottherebybecomeamember,andissubjecttosection347.1096.
18 4.Atanytimebeforeforeclosureundersubsection3ofthissection,themember
19ortransfereewhosetransferableinterestissubjecttoachargingorderundersubsection
201ofthissectionmayextinguishthechargingorderbysatisfyingthejudgmentandfiling
21acertifiedcopyofthesatisfactionwiththecourtthatissuedthechargingorder.
22 5.Atanytimebeforeforeclosureundersubsection3ofthissection,alimited
23liabilitycompanyoroneormorememberswhosetransferableinterestsarenotsubject
24tothechargingordermaypaytothejudgmentcreditorthefullamountdueunderthe
25judgmentandtherebysucceedtotherightsofthejudgmentcreditor,includingthe
26chargingorder.
27 6.Ifacourtordersforeclosureofachargingorderlienagainstthesolemember
28ofalimitedliabilitycompany:
29 (1)Thecourtshallconfirmthesale;
30 (2)Thepurchaseratthesaleobtainsthemember'sentireinterest,notonlythe
31member'stransferableinterest;
32 (3)Thepurchasertherebybecomesamember;and
33 (4)Thepersonwhoseinterestwassubjecttotheforeclosedchargingorderis
34dissociatedasamember.
35 7.Sections347.1000to347.1228donotdepriveanymemberortransfereeofthe
36benefitofanyexemptionlawapplicabletothetransferableinterestofthememberor
37transferee.
38 8.Thissectionprovidestheexclusiveremedybywhichapersonseekinginthe
39capacityofjudgmentcreditortoenforceajudgmentagainstamemberortransferee
40maysatisfythejudgmentfromthejudgmentdebtor'stransferableinterest.
HCSSSSCSSBs3&69 41 347.1100.Ifamemberdies,thedeceasedmember'slegalrepresentativemay
2exercise:
3 (1)Therightsofatransfereeprovidedinsubsection3ofsection347.1096;and
4 (2)Forthepurposesofsettlingtheestate,therightsthedeceasedmemberhad
5undersection347.1092.
347.1102.1.Apersonhasthepowertodissociateasamemberatanytime,
2rightfullyorwrongfully,bywithdrawingasamemberbyexpresswillundersubdivision
3(1)ofsection347.1104.
4 2.Aperson'sdissociationasamemberiswrongfulonlyifthedissociation:
5 (1)Isinbreachofanexpressprovisionoftheoperatingagreement;or
6 (2)Occursbeforethecompletionofthewindingupofthelimitedliability
7companyand:
8 (a)Thepersonwithdrawsasamemberbyexpresswill;
9 (b)Thepersonisexpelledasamemberbyjudicialorderundersubdivision(6)of
10section347.1104;
11 (c)Thepersonisdissociatedundersubdivision(8)ofsection347.1104;or
12 (d)Inthecaseofapersonthatisnotatrustotherthanabusinesstrust,an
13estate,oranindividual,thepersonisexpelledorotherwisedissociatedasamember
14becauseitwillfullydissolvedorterminated.
15 3.Apersonthatwrongfullydissociatesasamemberisliabletothelimited
16liabilitycompanyand,subjecttosection347.1128,totheothermembersfordamages
17causedbythedissociation.Theliabilityisinadditiontoanydebt,obligation,orother
18liabilityofthemembertothecompanyortheothermembers.
347.1104.Apersonisdissociatedasamemberwhen:
2 (1)Thelimitedliabilitycompanyknowsorhasnoticeoftheperson'sexpresswill
3towithdrawasamember,but,ifthepersonhasspecifiedawithdrawaldatelaterthan
4thedatethecompanykneworhadnotice,onthatlaterdate;
5 (2)Aneventstatedintheoperatingagreementascausingtheperson's
6dissociationoccurs;
7 (3)Theperson'sentireinterestistransferredinaforeclosuresaleunder
8subsection6ofsection347.1098;
9 (4)Thepersonisexpelledasamemberpursuanttotheoperatingagreement;
10 (5)Thepersonisexpelledasamemberbytheaffirmativevoteorconsentofall
11theothermembersif:
12 (a)Itisunlawfultocarryonthelimitedliabilitycompany'sactivitiesandaffairs
13withthepersonasamember;
HCSSSSCSSBs3&69 42 14 (b)Therehasbeenatransferofalltheperson'stransferableinterestinthe
15company,otherthan:
16 a.Atransferforsecuritypurposes;or
17 b.Achargingorderineffectundersection347.1098whichhasnotbeen
18foreclosed;
19 (c)Thepersonisanentityand:
20 a.Thecompanynotifiesthepersonthatitwillbeexpelledasamemberbecause
21thepersonhasfiledastatementofdissolutionortheequivalent,thepersonhasbeen
22administrativelydissolved,theperson'scharterortheequivalenthasbeenrevoked,or
23theperson'srighttoconductbusinesshasbeensuspendedbytheperson'sjurisdictionof
24formation;and
25 b.Notlaterthanninetydaysafterthenotification,thestatementofdissolution
26ortheequivalenthasnotbeenwithdrawn,rescinded,orrevoked,thepersonhasnot
27beenreinstated,ortheperson'scharterortheequivalentorrighttoconductbusiness
28hasnotbeenreinstated;or
29 (d)Thepersonisanunincorporatedentitythathasbeendissolvedandwhose
30activitiesandaffairsarebeingwoundup;
31 (6)Onapplicationbythelimitedliabilitycompanyoramemberinadirect
32actionundersection347.1128,thepersonisexpelledasamemberbyjudicialorder
33becausetheperson:
34 (a)Hasengagedorisengaginginwrongfulconductthathasaffectedadversely
35andmaterially,orwillaffectadverselyandmaterially,thecompany'sactivitiesand
36affairs;
37 (b)Hascommittedwillfullyorpersistently,oriscommittingwillfullyor
38persistently,amaterialbreachoftheoperatingagreementoradutyorobligationunder
39section347.1090;or
40 (c)Hasengagedorisengaginginconductrelatingtothecompany'sactivities
41andaffairswhichmakesitnotreasonablypracticabletocarryontheactivitiesand
42affairswiththepersonasamember;
43 (7)Inthecaseofanindividual:
44 (a)Theindividualdies;or
45 (b)Inamember-managedlimitedliabilitycompany:
46 a.Aguardianorgeneralconservatorfortheindividualisappointed;or
47 b.Acourtordersthattheindividualhasotherwisebecomeincapableof
48performingtheindividual'sdutiesasamemberundersections347.1000to347.1228or
49theoperatingagreement;
50 (8)Inamember-managedlimitedliabilitycompany,theperson:
HCSSSSCSSBs3&69 43 51 (a)Becomesadebtorinbankruptcy;
52 (b)Signsanassignmentforthebenefitofcreditors;or
53 (c)Seeks,consentsto,oracquiescesintheappointmentofatrustee,receiver,or
54liquidatorofthepersonorofallorsubstantiallyalltheperson'sproperty;
55 (9)Inthecaseofapersonthatisatestamentaryorintervivostrustorisacting
56asamemberbyvirtueofbeingatrusteeofsuchatrust,thetrust'sentiretransferable
57interestinthelimitedliabilitycompanyisdistributed;
58 (10)Inthecaseofapersonthatisanestateorisactingasamemberbyvirtueof
59beingapersonalrepresentativeofanestate,theestate'sentiretransferableinterestin
60thelimitedliabilitycompanyisdistributed;
61 (11)Inthecaseofapersonthatisnotanindividual,theexistenceoftheperson
62terminates;
63 (12)Thelimitedliabilitycompanyparticipatesinamergerundersections
64347.1164to347.1222and:
65 (a)Thecompanyisnotthesurvivingentity;or
66 (b)Otherwiseasaresultofthemerger,thepersonceasestobeamember;
67 (13)Thelimitedliabilitycompanyparticipatesinaninterestexchangeunder
68sections347.1164to347.1222and,asaresultoftheinterestexchange,thepersonceases
69tobeamember;
70 (14)Thelimitedliabilitycompanyparticipatesinaconversionundersections
71347.1164to347.1222;
72 (15)Thelimitedliabilitycompanyparticipatesinadomesticationundersections
73347.1164to347.1222and,asaresultofthedomestication,thepersonceasestobea
74member;or
75 (16)Thelimitedliabilitycompanydissolvesandcompleteswindingup.
347.1106.1.Ifapersonisdissociatedasamember:
2 (1)Theperson'srighttoparticipateasamemberinthemanagementand
3conductofthelimitedliabilitycompany'sactivitiesandaffairsterminates;
4 (2)Theperson'sdutiesandobligationsundersection347.1090asamemberend
5withregardtomattersarisingandeventsoccurringaftertheperson'sdissociation;and
6 (3)Subjecttosection347.1100andsections347.1164to347.1222,any
7transferableinterestownedbythepersonintheperson'scapacityasamember
8immediatelybeforedissociationisownedbythepersonsolelyasatransferee.
9 2.Aperson'sdissociationasamemberdoesnotofitselfdischargetheperson
10fromanydebt,obligation,orotherliabilitytothelimitedliabilitycompanyortheother
11memberswhichthepersonincurredwhileamember.
HCSSSSCSSBs3&69 44 347.1108.1.Alimitedliabilitycompanyisdissolved,anditsactivitiesandaffairs
2shallbewoundup,upontheoccurrenceofanyofthefollowing:
3 (1)Aneventorcircumstancethattheoperatingagreementstatescauses
4dissolution;
5 (2)Theaffirmativevoteorconsentofallthemembers;
6 (3)Thepassageofninetyconsecutivedaysduringwhichthecompanyhasno
7membersunlessbeforetheendoftheperiod:
8 (a)Consenttoadmitatleastonespecifiedpersonasamemberisgivenby
9transfereesowningtherightstoreceiveamajorityofdistributionsastransfereesatthe
10timetheconsentistobeeffective;and
11 (b)Atleastonepersonbecomesamemberinaccordancewiththeconsent;
12 (4)Onapplicationbyamember,theentrybyacourtofcompetentjurisdiction
13ofanorderdissolvingthecompanyonthegroundsthat:
14 (a)Theconductofallorsubstantiallyallthecompany'sactivitiesandaffairsis
15unlawful;
16 (b)Itisnotreasonablypracticabletocarryonthecompany'sactivitiesand
17affairsinconformitywiththecertificateoforganizationandtheoperatingagreement;
18or
19 (c)Themanagersorthosemembersincontrolofthecompany:
20 a.Haveacted,areacting,orwillactinamannerthatisillegalorfraudulent;or
21 b.Haveactedorareactinginamannerthatisoppressiveandwas,is,orwillbe
22directlyharmfultotheapplicant;or
23 (5)Thesigningandfilingofastatementofadministrativedissolutionbythe
24secretaryofstateundersection347.1122.
25 2.Inaproceedingbroughtunderparagraph(c)ofsubdivision(4)ofsubsection1
26ofthissection,thecourtmayorderaremedyotherthandissolution.
347.1110.1.Adissolvedlimitedliabilitycompanyshallwindupitsactivitiesand
2affairsand,exceptasotherwiseprovidedinsection347.1112,thecompanycontinues
3afterdissolutiononlyforthepurposeofwindingup.
4 2.Inwindingupitsactivitiesandaffairs,alimitedliabilitycompany:
5 (1)Shalldischargethecompany'sdebts,obligations,andotherliabilities,settle
6andclosethecompany'sactivitiesandaffairs,andmarshalanddistributetheassetsof
7thecompany;and
8 (2)May:
9 (a)Delivertothesecretaryofstateforfilingastatementofdissolutionstating
10thenameofthecompanyandthatthecompanyisdissolved;
HCSSSSCSSBs3&69 45 11 (b)Preservethecompanyactivities,affairs,andpropertyasagoingconcernfor
12areasonabletime;
13 (c)Prosecuteanddefendactionsandproceedings,whethercivil,criminal,or
14administrative;
15 (d)Transferthecompany'sproperty;
16 (e)Settledisputesbymediationorarbitration;
17 (f)Delivertothesecretaryofstateforfilingastatementofterminationstating
18thenameofthecompanyandthatthecompanyisterminated;and
19 (g)Performotheractsnecessaryorappropriatetothewindingup.
20 3.Ifadissolvedlimitedliabilitycompanyhasnomembers,thelegal
21representativeofthelastpersontohavebeenamembermaywinduptheactivities
22andaffairsofthecompany.Ifthepersondoesso,thepersonhasthepowersofasole
23managerundersubsection3ofsection347.1086andisdeemedtobeamanagerforthe
24purposesofsubsection1ofsection347.1072.
25 4.Ifthelegalrepresentativeundersubsection3ofthissectiondeclinesorfailsto
26windupthelimitedliabilitycompany'sactivitiesandaffairs,apersonmaybeappointed
27todosobytheconsentoftransfereesowningamajorityoftherightstoreceive
28distributionsastransfereesatthetimetheconsentistobeeffective.Apersonappointed
29underthissubsection:
30 (1)Hasthepowersofasolemanagerundersubsection3ofsection347.1086and
31isdeemedtobeamanagerforthepurposesofsubsection1ofsection347.1072;and
32 (2)Shalldeliverpromptlytothesecretaryofstateforfilinganamendmenttothe
33company'scertificateoforganizationstating:
34 (a)Thatthecompanyhasnomembers;
35 (b)Thenameandstreetandmailingaddressesoftheperson;and
36 (c)Thatthepersonhasbeenappointedpursuanttothissubsectiontowindup
37thecompany.
38 5.Acourtofcompetentjurisdictionmayorderjudicialsupervisionofthe
39windingupofadissolvedlimitedliabilitycompany,includingtheappointmentofa
40persontowindupthecompany'sactivitiesandaffairs:
41 (1)Ontheapplicationofamember,iftheapplicantestablishesgoodcause;
42 (2)Ontheapplicationofatransferee,if:
43 (a)Thecompanydoesnothaveanymembers;
44 (b)Thelegalrepresentativeofthelastpersontohavebeenamemberdeclinesor
45failstowindupthecompany'sactivities;and
46 (c)Withinareasonabletimefollowingthedissolutionapersonhasnotbeen
47appointedpursuanttosubsection3ofthissection;or
HCSSSSCSSBs3&69 46 48 (3)Inconnectionwithaproceedingundersubdivision(4)ofsubsection1of
49section347.1108.
347.1112.1.Alimitedliabilitycompanymayrescinditsdissolution,unlessa
2statementofterminationapplicabletothecompanyhasbecomeeffective,acourtof
3competentjurisdictionhasenteredanorderundersubdivision(4)ofsubsection1of
4section347.1108dissolvingthecompany,orthesecretaryofstatehasdissolvedthe
5companyundersection347.1122.
6 2.Rescindingdissolutionunderthissectionrequires:
7 (1)Theaffirmativevoteorconsentofeachmember;and
8 (2)Ifthelimitedliabilitycompanyhasdeliveredtothesecretaryofstatefor
9filingastatementofdissolutionand:
10 (a)Thestatementhasnotbecomeeffective,deliverytothesecretaryofstatefor
11filingofastatementofwithdrawalundersection347.1056applicabletothestatementof
12dissolution;or
13 (b)Ifthestatementofdissolutionhasbecomeeffective,deliverytothesecretary
14ofstateforfilingofastatementofrescissionstatingthenameofthecompanyandthat
15dissolutionhasbeenrescindedunderthissection.
16 3.Ifalimitedliabilitycompanyrescindsitsdissolution:
17 (1)Thecompanyresumescarryingonitsactivitiesandaffairsasifdissolution
18hadneveroccurred;
19 (2)Subjecttosubdivision(3)ofthissubsection,anyliabilityincurredbythe
20companyafterthedissolutionandbeforetherescissionhasbecomeeffectiveis
21determinedasifdissolutionhadneveroccurred;and
22 (3)Therightsofathirdpartyarisingoutofconductinrelianceonthe
23dissolutionbeforethethirdpartykneworhadnoticeoftherescissionshallnotbe
24adverselyaffected.
347.1114.1.Exceptasotherwiseprovidedinsubsection4ofthissection,a
2dissolvedlimitedliabilitycompanymaygivenoticeofaknownclaimundersubsection2
3ofthissection,whichhastheeffectprovidedinsubsection3ofthissection.
4 2.Adissolvedlimitedliabilitycompanymayinarecordnotifyitsknown
5claimantsofthedissolution.Thenoticeshall:
6 (1)Specifytheinformationrequiredtobeincludedinaclaim;
7 (2)Statethataclaimshallbeinwritingandprovideamailingaddresstowhich
8theclaimistobesent;
9 (3)Statethedeadlineforreceiptofaclaim,whichshallnotbelessthanone
10hundredtwentydaysafterthedatethenoticeisreceivedbytheclaimant;and
11 (4)Statethattheclaimwillbebarredifnotreceivedbythedeadline.
HCSSSSCSSBs3&69 47 12 3.Aclaimagainstadissolvedlimitedliabilitycompanyisbarredifthe
13requirementsofsubsection2ofthissectionaremetand:
14 (1)Theclaimisnotreceivedbythespecifieddeadline;or
15 (2)Iftheclaimistimelyreceivedbutrejectedbythecompany:
16 (a)Thecompanycausestheclaimanttoreceiveanoticeinarecordstatingthat
17theclaimisrejectedandwillbebarredunlesstheclaimantcommencesanactionagainst
18thecompanytoenforcetheclaimnotlaterthanninetydaysaftertheclaimantreceives
19thenotice;and
20 (b)Theclaimantdoesnotcommencetherequiredactionnotlaterthanninety
21daysaftertheclaimantreceivesthenotice.
22 4.Thissectiondoesnotapplytoaclaimbasedonaneventoccurringafterthe
23dateofdissolutionoraliabilitythatonthatdateiscontingent.
347.1116.1.Adissolvedlimitedliabilitycompanymaypublishnoticeofits
2dissolutionandrequestpersonshavingclaimsagainstthecompanytopresentthemin
3accordancewiththenotice.
4 2.Anoticeundersubsection1ofthissectionshall:
5 (1)Bepublishedatleastonceinanewspaperofgeneralcirculationinthecounty
6inthisstateinwhichthedissolvedlimitedliabilitycompany'sprincipalofficeislocated
7or,iftheprincipalofficeisnotlocatedinthisstate,inthecountyinwhichtheofficeof
8thecompany'sregisteredagentisorwaslastlocated;
9 (2)Describetheinformationrequiredtobecontainedinaclaim,statethatthe
10claimshallbeinwriting,andprovideamailingaddresstowhichtheclaimistobesent;
11and
12 (3)Statethataclaimagainstthecompanyisbarredunlessanactiontoenforce
13theclaimiscommencednotlaterthanthreeyearsafterpublicationofthenotice.
14 3.Ifadissolvedlimitedliabilitycompanypublishesanoticeinaccordancewith
15subsection2ofthissection,theclaimofeachofthefollowingclaimantsisbarredunless
16theclaimantcommencesanactiontoenforcetheclaimagainstthecompanynotlater
17thanthreeyearsafterthepublicationdateofthenotice:
18 (1)Aclaimantthatdidnotreceivenoticeinarecordundersection347.1114;
19 (2)Aclaimantwhoseclaimwastimelysenttothecompanybutnotactedon;and
20 (3)Aclaimantwhoseclaimiscontingentat,orbasedonaneventoccurringafter,
21thedateofdissolution.
22 4.Aclaimnotbarredunderthissectionorsection347.1114maybeenforced:
23 (1)Againstadissolvedlimitedliabilitycompany,totheextentofits
24undistributedassets;and
HCSSSSCSSBs3&69 48 25 (2)Exceptasotherwiseprovidedinsection347.1118,ifassetsofthecompany
26havebeendistributedafterdissolution,againstamemberortransfereetotheextentof
27thatperson'sproportionateshareoftheclaimorofthecompany'sassetsdistributedto
28thememberortransfereeafterdissolution,whicheverisless,butaperson'stotal
29liabilityforallclaimsunderthissubdivisionshallnotexceedthetotalamountofassets
30distributedtothepersonafterdissolution.
347.1118.1.Adissolvedlimitedliabilitycompanythathaspublishedanotice
2undersection347.1116mayfileanapplicationwiththecircuitcourtinthecountywhere
3thecompany'sprincipalofficeislocatedor,iftheprincipalofficeisnotlocatedinthis
4state,wheretheofficeofitsregisteredagentisorwaslastlocated,foradeterminationof
5theamountandformofsecuritytobeprovidedforpaymentofclaimsthatare
6reasonablyexpectedtoariseafterthedateofdissolutionbasedonfactsknowntothe
7companyand:
8 (1)Atthetimeofapplication:
9 (a)Arecontingent;or
10 (b)Havenotbeenmadeknowntothecompany;or
11 (2)Arebasedonaneventoccurringafterthedateofdissolution.
12 2.Securityisnotrequiredforanyclaimthatisorisreasonablyanticipatedtobe
13barredundersection347.1116.
14 3.Notlaterthantendaysafterthefilingofanapplicationundersubsection1of
15thissection,thedissolvedlimitedliabilitycompanyshallgivenoticeoftheproceedingto
16eachclaimantholdingacontingentclaimknowntothecompany.
17 4.Inaproceedingunderthissection,thecourtmayappointaguardianadlitem
18torepresentallclaimantswhoseidentitiesareunknown.Thereasonablefeesand
19expensesoftheguardian,includingallreasonableexpertwitnessfees,shallbepaidby
20thedissolvedlimitedliabilitycompany.
21 5.Adissolvedlimitedliabilitycompanythatprovidessecurityintheamountand
22formorderedbythecourtundersubsection1ofthissectionsatisfiesthecompany's
23obligationswithrespecttoclaimsthatarecontingent,havenotbeenmadeknowntothe
24company,orarebasedonaneventoccurringafterthedateofdissolution,andsuch
25claimsshallnotbeenforcedagainstamemberortransfereeonaccountofassets
26receivedinliquidation.
347.1120.1.Inwindingupitsactivitiesandaffairs,alimitedliabilitycompany
2shallapplyitsassetstodischargethecompany'sobligationstocreditors,including
3membersthatarecreditors.
HCSSSSCSSBs3&69 49 4 2.Afteralimitedliabilitycompanycomplieswithsubsection1ofthissection,
5anysurplusshallbedistributedinthefollowingorder,subjecttoanychargingorderin
6effectundersection347.1098:
7 (1)Toeachpersonowningatransferableinterestthatreflectscontributions
8madeandnotpreviouslyreturned,anamountequaltothevalueoftheunreturned
9contributions;and
10 (2)Amongpersonsowningtransferableinterestsinproportiontotheir
11respectiverightstoshareindistributionsimmediatelybeforethedissolutionofthe
12company.
13 3.Ifalimitedliabilitycompanydoesnothavesufficientsurplustocomplywith
14subdivision(1)ofsubsection2ofthissection,anysurplusshallbedistributedamongthe
15ownersoftransferableinterestsinproportiontothevalueoftherespectiveunreturned
16contributions.
17 4.Alldistributionsmadeundersubsections2and3ofthissectionshallbepaid
18inmoney.
347.1122.1.Thesecretaryofstatemaycommenceaproceedingunder
2subsection2ofthissectiontodissolvealimitedliabilitycompanyadministrativelyifthe
3companydoesnot:
4 (1)Payanyfee,tax,interest,orpenaltyrequiredtobepaidtothesecretaryof
5statenotlaterthansixmonthsafteritisdue;
6 (2)Deliveranannualreporttothesecretaryofstatenotlaterthansixmonths
7afteritisdue;or
8 (3)Havearegisteredagentinthisstateforsixtyconsecutivedays.
9 2.Ifthesecretaryofstatedeterminesthatoneormoregroundsexistfor
10administrativelydissolvingalimitedliabilitycompany,thesecretaryofstateshallserve
11thecompanywithnoticeinarecordofthesecretaryofstate'sdetermination.
12 3.Ifalimitedliabilitycompany,notlaterthansixtydaysafterserviceofthe
13noticeundersubsection2ofthissection,doesnotcureordemonstratetothesatisfaction
14ofthesecretaryofstatethenonexistenceofeachgrounddeterminedbythesecretaryof
15state,thesecretaryofstateshalladministrativelydissolvethecompanybysigninga
16statementofadministrativedissolutionthatrecitesthegroundsfordissolutionandthe
17effectivedateofdissolution.Thesecretaryofstateshallfilethestatementandservea
18copyonthecompanypursuanttosection347.1060.
19 4.Alimitedliabilitycompanythatisadministrativelydissolvedcontinuesin
20existenceasanentitybutshallnotcarryonanyactivitiesexceptasnecessarytowindup
21itsactivitiesandaffairsandliquidateitsassetsundersections347.1110,347.1114,
22347.1116,347.1118,and347.1120,ortoapplyforreinstatementundersection347.1124.
HCSSSSCSSBs3&69 50 23 5.Theadministrativedissolutionofalimitedliabilitycompanydoesnot
24terminatetheauthorityofitsregisteredagent.
347.1124.1.Alimitedliabilitycompanythatisadministrativelydissolvedunder
2section347.1122mayapplytothesecretaryofstateforreinstatementnotlaterthantwo
3yearsaftertheeffectivedateofdissolution.Theapplicationshallstate:
4 (1)Thenameofthecompanyatthetimeofitsadministrativedissolutionand,if
5needed,adifferentnamethatsatisfiessection347.1022;
6 (2)Theaddressoftheprincipalofficeofthecompanyandthenameandstreet
7andmailingaddressesofitsregisteredagent;
8 (3)Theeffectivedateofthecompany'sadministrativedissolution;and
9 (4)Thatthegroundsfordissolutiondidnotexistorhavebeencured.
10 2.Tobereinstated,alimitedliabilitycompanyshallpayallfees,taxes,interest,
11andpenaltiesthatwereduetothesecretaryofstateatthetimeofthecompany's
12administrativedissolutionandallfees,taxes,interest,andpenaltiesthatwouldhave
13beenduetothesecretaryofstatewhilethecompanywasadministrativelydissolved.
14 3.Ifthesecretaryofstatedeterminesthatanapplicationundersubsection1of
15thissectioncontainstherequiredinformation,issatisfiedthattheinformationis
16correct,anddeterminesthatallpaymentsrequiredtobemadetothesecretaryofstate
17bysubsection2ofthissectionhavebeenmade,thesecretaryofstateshall:
18 (1)Cancelthestatementofadministrativedissolutionandprepareastatement
19ofreinstatementthatstatesthesecretaryofstate'sdeterminationandtheeffectivedate
20ofreinstatement;and
21 (2)Filethestatementofreinstatementandserveacopyonthelimitedliability
22company.
23 4.Whenreinstatementunderthissectionhasbecomeeffective,thefollowing
24rulesapply:
25 (1)Thereinstatementrelatesbacktoandtakeseffectasoftheeffectivedateof
26theadministrativedissolution;
27 (2)Thelimitedliabilitycompanyresumescarryingonitsactivitiesandaffairsas
28iftheadministrativedissolutionhadnotoccurred;
29 (3)Therightsofapersonarisingoutofanactoromissioninrelianceonthe
30dissolutionbeforethepersonkneworhadnoticeofthereinstatementarenotaffected.
347.1126.1.Ifthesecretaryofstatedeniesalimitedliabilitycompany's
2applicationforreinstatementfollowingadministrativedissolution,thesecretaryofstate
3shallservethecompanywithanoticeinarecordthatexplainsthereasonsforthe
4denial.
HCSSSSCSSBs3&69 51 5 2.Alimitedliabilitycompanymayseekjudicialreviewofdenialof
6reinstatementinacourtofcompetentjurisdictionnotlaterthanthirtydaysafter
7serviceofthenoticeofdenial.
347.1128.1.Subjecttosubsection2ofthissection,amembermaymaintaina
2directactionagainstanothermember,amanager,orthelimitedliabilitycompanyto
3enforcethemember'srightsandprotectthemember'sinterests,includingrightsand
4interestsundertheoperatingagreementorsections347.1000to347.1228orarising
5independentlyofthemembershiprelationship.
6 2.Amembermaintainingadirectactionunderthissectionshallpleadandprove
7anactualorthreatenedinjurythatisnotsolelytheresultofaninjurysufferedor
8threatenedtobesufferedbythelimitedliabilitycompany.
347.1130.Amembermaymaintainaderivativeactiontoenforcearightofa
2limitedliabilitycompanyif:
3 (1)Thememberfirstmakesademandontheothermembersinamember-
4managedlimitedliabilitycompany,orthemanagersofamanager-managedlimited
5liabilitycompany,requestingthattheycausethecompanytobringanactiontoenforce
6theright,andthemanagersorothermembersdonotbringtheactionwithina
7reasonabletime;or
8 (2)Ademandundersubdivision(1)ofthissectionwouldbefutile.
347.1132.Aderivativeactiontoenforcearightofalimitedliabilitycompany
2maybemaintainedonlybyapersonthatisamemberatthetimetheactionis
3commencedand:
4 (1)Wasamemberwhentheconductgivingrisetotheactionoccurred;or
5 (2)Whosestatusasamemberdevolvedonthepersonbyoperationoflawor
6pursuanttothetermsoftheoperatingagreementfromapersonthatwasamemberat
7thetimeoftheconduct.
347.1134.Inaderivativeaction,thecomplaintshallstatewithparticularity:
2 (1)Thedateandcontentofplaintiff'sdemandandtheresponsetothedemand
3bythemanagersorothermembers;or
4 (2)Whydemandshouldbeexcusedasfutile.
347.1136.1.Ifalimitedliabilitycompanyisnamedasormadeapartyina
2derivativeproceeding,thecompanymayappointaspeciallitigationcommitteeto
3investigatetheclaimsassertedintheproceedinganddeterminewhetherpursuingthe
4actionisinthebestinterestsofthecompany.Ifthecompanyappointsaspecial
5litigationcommittee,onmotionbythecommitteemadeinthenameofthecompany,
6exceptforgoodcauseshown,thecourtshallstaydiscoveryforthetimereasonably
HCSSSSCSSBs3&69 52 7necessarytopermitthecommitteetomakeitsinvestigation.Thissubsectiondoesnot
8preventthecourtfrom:
9 (1)Enforcingaperson'srighttoinformationundersection347.1092;or
10 (2)Grantingextraordinaryreliefintheformofatemporaryrestrainingorder
11orpreliminaryinjunction.
12 2.Aspeciallitigationcommitteeshallbecomposedofoneormoredisinterested
13andindependentindividuals,whomaybemembers.
14 3.Aspeciallitigationcommitteemaybeappointed:
15 (1)Inamember-managedlimitedliabilitycompany:
16 (a)Bytheaffirmativevoteorconsentofamajorityofthemembersnotnamedas
17partiesintheproceeding;or
18 (b)Ifallmembersarenamedaspartiesintheproceeding,byamajorityofthe
19membersnamedasdefendants;or
20 (2)Inamanager-managedlimitedliabilitycompany:
21 (a)Byamajorityofthemanagersnotnamedaspartiesintheproceeding;or
22 (b)Ifallmanagersarenamedaspartiesintheproceeding,byamajorityofthe
23managersnamedasdefendants.
24 4.Afterappropriateinvestigation,aspeciallitigationcommitteemaydetermine
25thatitisinthebestinterestsofthelimitedliabilitycompanythattheproceeding:
26 (1)Continueunderthecontroloftheplaintiff;
27 (2)Continueunderthecontrolofthecommittee;
28 (3)Besettledontermsapprovedbythecommittee;or
29 (4)Bedismissed.
30 5.Aftermakingadeterminationundersubsection4ofthissection,aspecial
31litigationcommitteeshallfilewiththecourtastatementofitsdeterminationandits
32reportsupportingitsdeterminationandshallserveeachpartywithacopyofthe
33determinationandreport.Thecourtshalldeterminewhetherthemembersofthe
34committeeweredisinterestedandindependentandwhetherthecommitteeconductedits
35investigationandmadeitsrecommendationingoodfaith,independently,andwith
36reasonablecare,withthecommitteehavingtheburdenofproof.Ifthecourtfindsthat
37themembersofthecommitteeweredisinterestedandindependentandthatthe
38committeeactedingoodfaith,independently,andwithreasonablecare,thecourtshall
39enforcethedeterminationofthecommittee.Otherwise,thecourtshalldissolvethestay
40ofdiscoveryenteredundersubsection1ofthissectionandallowtheactiontocontinue
41underthecontroloftheplaintiff.
347.1138.1.Exceptasotherwiseprovidedinsubsection2ofthissection:
HCSSSSCSSBs3&69 53 2 (1)Anyproceedsorotherbenefitsofaderivativeaction,whetherbyjudgment,
3compromise,orsettlement,belongtothelimitedliabilitycompanyandnottothe
4plaintiff;and
5 (2)Iftheplaintiffreceivesanyproceeds,theplaintiffshallremitthem
6immediatelytothecompany.
7 2.Ifaderivativeactionissuccessfulinwholeorinpart,thecourtmayawardthe
8plaintiffreasonableexpenses,includingreasonableattorney'sfeesandcosts,fromthe
9recoveryofthelimitedliabilitycompany.
10 3.Aderivativeactiononbehalfofalimitedliabilitycompanyshallnotbe
11voluntarilydismissedorsettledwithoutthecourt'sapproval.
347.1140.1.Thelawofthejurisdictionofformationofaforeignlimitedliability
2companygoverns:
3 (1)Theinternalaffairsofthecompany;
4 (2)Theliabilityofamemberasmemberandamanagerasmanagerforadebt,
5obligation,orotherliabilityofthecompany;and
6 (3)Theliabilityofaseriesofthecompany.
7 2.Aforeignlimitedliabilitycompanyisnotprecludedfromregisteringtodo
8businessinthisstatebecauseofanydifferencebetweenthelawofitsjurisdictionof
9formationandthelawofthisstate.
10 3.Registrationofaforeignlimitedliabilitycompanytodobusinessinthisstate
11doesnotauthorizetheforeigncompanytoengageinanyactivitiesandaffairsor
12exerciseanypowerthatalimitedliabilitycompanyshallnotengageinorexerciseinthis
13state.
347.1142.1.Aforeignlimitedliabilitycompanyshallnotdobusinessinthis
2stateuntilitregisterswiththesecretaryofstateundersections347.1140to347.1162.
3 2.Aforeignlimitedliabilitycompanydoingbusinessinthisstateshallnot
4maintainanactionorproceedinginthisstateunlessitisregisteredtodobusinessinthis
5state.
6 3.Thefailureofaforeignlimitedliabilitycompanytoregistertodobusinessin
7thisstatedoesnotimpairthevalidityofacontractoractofthecompanyorprecludeit
8fromdefendinganactionorproceedinginthisstate.
9 4.Alimitationontheliabilityofamemberormanagerofaforeignlimited
10liabilitycompanyisnotwaivedsolelybecausethecompanydoesbusinessinthisstate
11withoutregisteringtodobusinessinthisstate.
12 5.Subsections1and2ofsection347.1140applyevenifaforeignlimitedliability
13companyfailstoregisterundersections347.1140to347.1162.
HCSSSSCSSBs3&69 54 347.1144.Toregistertodobusinessinthisstate,aforeignlimitedliability
2companyshalldeliveraforeignregistrationstatementtothesecretaryofstateforfiling.
3Thestatementshallstate:
4 (1)Thenameofthecompanyand,ifthenamedoesnotcomplywithsection
5347.1022,analternatenameadoptedpursuanttosubsection1ofsection347.1150;
6 (2)Thatthecompanyisaforeignlimitedliabilitycompany;
7 (3)Thecompany'sjurisdictionofformation;
8 (4)Thestreetandmailingaddressesofthecompany'sprincipalofficeand,ifthe
9lawofthecompany'sjurisdictionofformationrequiresthecompanytomaintainan
10officeinthatjurisdiction,thestreetandmailingaddressesoftherequiredoffice;and
11 (5)Thenameandstreetandmailingaddressesofthecompany'sregisteredagent
12inthisstate.
347.1146.Aregisteredforeignlimitedliabilitycompanyshalldelivertothe
2secretaryofstateforfilinganamendmenttoitsforeignregistrationstatementifthereis
3achangein:
4 (1)Thenameofthecompany;
5 (2)Thecompany'sjurisdictionofformation;
6 (3)Anaddressrequiredbysubdivision(4)ofsection347.1144;or
7 (4)Theinformationrequiredbysubdivision(5)ofsection347.1144.
347.1148.1.Activitiesofaforeignlimitedliabilitycompanywhichdonot
2constitutedoingbusinessinthisstateundersections347.1140to347.1162include:
3 (1)Maintaining,defending,mediating,arbitrating,orsettlinganactionor
4proceeding;
5 (2)Carryingonanyactivityconcerningitsinternalaffairs,includingholding
6meetingsofitsmembersormanagers;
7 (3)Maintainingaccountsinfinancialinstitutions;
8 (4)Maintainingofficesoragenciesforthetransfer,exchange,andregistrationof
9securitiesofthecompanyormaintainingtrusteesordepositorieswithrespecttothose
10securities;
11 (5)Sellingthroughindependentcontractors;
12 (6)Solicitingorobtainingordersbyanymeansiftheordersrequireacceptance
13outsidethisstatebeforetheybecomecontracts;
14 (7)Creatingoracquiringindebtedness,mortgages,orsecurityinterestsin
15property;
16 (8)Securingorcollectingdebtsorenforcingmortgagesorsecurityinterestsin
17propertysecuringthedebtsandholding,protecting,ormaintainingproperty;
HCSSSSCSSBs3&69 55 18 (9)Conductinganisolatedtransactionthatisnotinthecourseofsimilar
19transactions;
20 (10)Owning,withoutmore,property;and
21 (11)Doingbusinessininterstatecommerce.
22 2.Apersondoesnotdobusinessinthisstatesolelybybeingamemberor
23managerofaforeignlimitedliabilitycompanythatdoesbusinessinthisstate.
24 3.Thissectiondoesnotapplyindeterminingthecontactsoractivitiesthatmay
25subjectaforeignlimitedliabilitycompanytoserviceofprocess,taxation,orregulation
26underlawofthisstateotherthansections347.1000to347.1228.
347.1150.1.Aforeignlimitedliabilitycompanywhosenamedoesnotcomply
2withsection347.1022shallnotregistertodobusinessinthisstateuntilitadopts,forthe
3purposeofdoingbusinessinthisstate,analternatenamethatcomplieswithsection
4347.1022.Acompanythatregistersunderanalternatenameunderthissubsectionneed
5notcomplywithsections417.200to417.230.Afterregisteringtodobusinessinthis
6statewithanalternatename,acompanyshalldobusinessinthisstateunder:
7 (1)Thealternatename;
8 (2)Thecompany'sname,withtheadditionofitsjurisdictionofformation;or
9 (3)Anamethecompanyisauthorizedtouseundersections417.200to417.230.
10 2.Ifaregisteredforeignlimitedliabilitycompanychangesitsnametoonethat
11doesnotcomplywithsection347.1022,itshallnotdobusinessinthisstateuntilit
12complieswithsubsection1ofthissectionbyamendingitsregistrationtoadoptan
13alternatenamethatcomplieswithsection347.1022.
347.1152.Aregisteredforeignlimitedliabilitycompanythatconvertstoa
2domesticlimitedliabilitypartnershiportoadomesticentitywhoseformationrequires
3deliveryofarecordtothesecretaryofstateforfilingisdeemedtohavewithdrawnits
4registrationontheeffectivedateoftheconversion.
347.1154.1.Aregisteredforeignlimitedliabilitycompanythathasdissolved
2andcompletedwindinguporhasconvertedtoadomesticorforeignentitywhose
3formationdoesnotrequirethepublicfilingofarecord,otherthanalimitedliability
4partnership,shalldeliverastatementofwithdrawaltothesecretaryofstateforfiling.
5Thestatementshallstate:
6 (1)Inthecaseofacompanythathascompletedwindingup:
7 (a)Itsnameandjurisdictionofformation;
8 (b)Thatthecompanysurrendersitsregistrationtodobusinessinthisstate;and
9 (2)Inthecaseofacompanythathasconverted:
10 (a)Thenameoftheconvertingcompanyanditsjurisdictionofformation;
HCSSSSCSSBs3&69 56 11 (b)Thetypeofentitytowhichthecompanyhasconvertedanditsjurisdictionof
12formation;
13 (c)Thattheconvertedentitysurrenderstheconvertingcompany'sregistration
14todobusinessinthisstateandrevokestheauthorityoftheconvertingcompany's
15registeredagenttoactasregisteredagentinthisstateonbehalfofthecompanyorthe
16convertedentity;and
17 (d)Amailingaddresstowhichserviceofprocessmaybemadeundersubsection
182ofthissection.
19 2.Afterawithdrawalunderthissectionhasbecomeeffective,serviceofprocess
20inanyactionorproceedingbasedonacauseofactionarisingduringthetimethe
21foreignlimitedliabilitycompanywasregisteredtodobusinessinthisstatemaybemade
22pursuanttosection347.1036.
347.1156.1.Whenaregisteredforeignlimitedliabilitycompanyhasmerged
2intoaforeignentitythatisnotregisteredtodobusinessinthisstateorhasconvertedto
3aforeignentityrequiredtoregisterwiththesecretaryofstatetodobusinessinthis
4state,theforeignentityshalldelivertothesecretaryofstateforfilinganapplicationfor
5transferofregistration.Theapplicationshallstate:
6 (1)Thenameoftheregisteredforeignlimitedliabilitycompanybeforethe
7mergerorconversion;
8 (2)Thatbeforethemergerorconversiontheregistrationpertainedtoaforeign
9limitedliabilitycompany;
10 (3)Thenameoftheapplicantforeignentityintowhichtheforeignlimited
11liabilitycompanyhasmergedortowhichithasbeenconvertedand,ifthenamedoes
12notcomplywithsection347.1022,analternatenameadoptedpursuanttosubsection1
13ofsection347.1150;
14 (4)Thetypeofentityoftheapplicantforeignentityanditsjurisdictionof
15formation;
16 (5)Thestreetandmailingaddressesoftheprincipalofficeoftheapplicant
17foreignentityand,ifthelawoftheentity'sjurisdictionofformationrequirestheentity
18tomaintainanofficeinthatjurisdiction,thestreetandmailingaddressesofthatoffice;
19and
20 (6)Thenameandstreetandmailingaddressesoftheapplicantforeignentity's
21registeredagentinthisstate.
22 2.Whenanapplicationfortransferofregistrationtakeseffect,theregistration
23oftheforeignlimitedliabilitycompanytodobusinessinthisstateistransferredwithout
24interruptiontotheforeignentityintowhichthecompanyhasmergedortowhichithas
25beenconverted.
HCSSSSCSSBs3&69 57 347.1158.1.Thesecretaryofstatemayterminatetheregistrationofaregistered
2foreignlimitedliabilitycompanyinthemannerprovidedinsubsections2and3ofthis
3sectionifthecompanydoesnot:
4 (1)Pay,notlaterthansixtydaysaftertheduedate,anyfee,tax,interest,or
5penaltyrequiredtobepaidtothesecretaryofstateundersections347.1000to347.1228
6orlawotherthansections347.1000to347.1228;
7 (2)Delivertothesecretaryofstateforfiling,notlaterthansixtydaysafterthe
8duedate,anannualreportrequiredundersection347.1064;
9 (3)Havearegisteredagentasrequiredbysection347.1028;or
10 (4)Delivertothesecretaryofstateforfilingastatementofachangeunder
11section347.1030notlaterthanthirtydaysafterachangehasoccurredinthenameor
12addressoftheregisteredagent.
13 2.Thesecretaryofstatemayterminatetheregistrationofaregisteredforeign
14limitedliabilitycompanyby:
15 (1)Filinganoticeofterminationornotingtheterminationintherecordsofthe
16secretaryofstate;and
17 (2)Deliveringacopyofthenoticeortheinformationinthenotationtothe
18company'sregisteredagentor,ifthecompanydoesnothavearegisteredagent,tothe
19company'sprincipaloffice.
20 3.Thenoticeshallstateortheinformationinthenotationshallinclude:
21 (1)Theeffectivedateofthetermination,whichshallbeatleastsixtydaysafter
22thedatethesecretaryofstatedeliversthecopy;and
23 (2)Thegroundsforterminationundersubsection1ofthissection.
24 4.Theauthorityofaregisteredforeignlimitedliabilitycompanytodobusiness
25inthisstateceasesontheeffectivedateofthenoticeofterminationornotationunder
26subsection2ofthissection,unlessbeforethatdatethecompanycureseachgroundfor
27terminationstatedinthenoticeornotation.Ifthecompanycureseachground,the
28secretaryofstateshallfilearecordsostating.
347.1160.1.Aregisteredforeignlimitedliabilitycompanymaywithdrawits
2registrationbydeliveringastatementofwithdrawaltothesecretaryofstateforfiling.
3Thestatementofwithdrawalshallstate:
4 (1)Thenameofthecompanyanditsjurisdictionofformation;
5 (2)Thatthecompanyisnotdoingbusinessinthisstateandthatitwithdrawsits
6registrationtodobusinessinthisstate;
7 (3)Thatthecompanyrevokestheauthorityofitsregisteredagenttoaccept
8serviceonitsbehalfinthisstate;and
HCSSSSCSSBs3&69 58 9 (4)Anaddresstowhichserviceofprocessmaybemadeundersubsection2of
10thissection.
11 2.Afterthewithdrawaloftheregistrationofaforeignlimitedliabilitycompany,
12serviceofprocessinanyactionorproceedingbasedonacauseofactionarisingduring
13thetimethecompanywasregisteredtodobusinessinthisstatemaybemadepursuant
14tosection347.1036.
347.1162.Theattorneygeneralmaymaintainanactiontoenjoinaforeign
2limitedliabilitycompanyfromdoingbusinessinthisstateinviolationofsections
3347.1140to347.1162.
347.1164.Insections347.1164to347.1222:
2 (1)"Acquiredentity"meanstheentity,allofoneormoreclassesorseriesof
3interestsofwhichareacquiredinaninterestexchange;
4 (2)"Acquiringentity"meanstheentitythatacquiresallofoneormoreclasses
5orseriesofinterestsoftheacquiredentityinaninterestexchange;
6 (3)"Conversion"meansatransactionauthorizedbysections347.1200to
7347.1210;
8 (4)"Convertedentity"meanstheconvertingentityasitcontinuesinexistence
9afteraconversion;
10 (5)"Convertingentity"meansthedomesticentitythatapprovesaplanof
11conversionpursuanttosection347.1204ortheforeignentitythatapprovesaconversion
12pursuanttothelawofitsjurisdictionofformation;
13 (6)"Distributionalinterest"meanstherightunderanunincorporatedentity's
14organiclawandorganicrulestoreceivedistributionsfromtheentity;
15 (7)"Domestic",withrespecttoanentity,meansgovernedastoitsinternal
16affairsbythelawofthisstate;
17 (8)"Domesticatedlimitedliabilitycompany"meansthedomesticatinglimited
18liabilitycompanyasitcontinuesinexistenceafteradomestication;
19 (9)"Domesticatinglimitedliabilitycompany"meansthedomesticlimited
20liabilitycompanythatapprovesaplanofdomesticationpursuanttosection347.1216or
21theforeignlimitedliabilitycompanythatapprovesadomesticationpursuanttothelaw
22ofitsjurisdictionofformation;
23 (10)"Domestication"meansatransactionauthorizedbysections347.1212to
24347.1222;
25 (11)"Entity":
26 (a)Means:
27 a.Abusinesscorporation;
28 b.Anonprofitcorporation;
HCSSSSCSSBs3&69 59 29 c.Ageneralpartnership,includingalimitedliabilitypartnership;
30 d.Alimitedpartnership,includingalimitedliabilitylimitedpartnership;
31 e.Alimitedliabilitycompany;
32 f.Ageneralcooperativeassociation;
33 g.Alimitedcooperativeassociation;
34 h.Anunincorporatednonprofitassociation;
35 i.Astatutorytrust,businesstrust,orcommon-lawbusinesstrust;or
36 j.Anyotherpersonthathas:
37 (i)Alegalexistenceseparatefromanyinterestholderofthatperson;or
38 (ii)Thepowertoacquireaninterestinrealpropertyinitsownname;and
39 (b)Doesnotinclude:
40 a.Anindividual;
41 b.Atrustwithapredominantlydonativepurposeoracharitabletrust;
42 c.Anassociationorrelationshipthatisnotanentitylistedinparagraph(a)of
43thissubdivisionandisnotapartnershipundertherulesstatedinsection358.070ora
44similarprovisionofthelawofanotherjurisdiction;
45 d.Adecedent'sestate;or
46 e.Agovernmentoragovernmentalsubdivision,agency,orinstrumentality;
47 (12)"Filingentity"meansanentitywhoseformationrequiresthefilingofa
48publicorganicrecord.Thetermdoesnotincludealimitedliabilitypartnership;
49 (13)"Foreign",withrespecttoanentity,meansanentitygovernedastoits
50internalaffairsbythelawofajurisdictionotherthanthisstate;
51 (14)"Governanceinterest"meansarightundertheorganiclawororganicrules
52ofanunincorporatedentity,otherthanasagovernor,agent,assignee,orproxy,to:
53 (a)Receiveordemandaccesstoinformationconcerning,orthebooksand
54recordsof,theentity;
55 (b)Votefororconsenttotheelectionofthegovernorsoftheentity;or
56 (c)Receivenoticeoforvoteonorconsenttoanissueinvolvingtheinternal
57affairsoftheentity;
58 (15)"Governor"means:
59 (a)Adirectorofabusinesscorporation;
60 (b)Adirectorortrusteeofanonprofitcorporation;
61 (c)Ageneralpartnerofageneralpartnership;
62 (d)Ageneralpartnerofalimitedpartnership;
63 (e)Amanagerofamanager-managedlimitedliabilitycompany;
64 (f)Amemberofamember-managedlimitedliabilitycompany;
65 (g)Adirectorofageneralcooperativeassociation;
HCSSSSCSSBs3&69 60 66 (h)Adirectorofalimitedcooperativeassociation;
67 (i)Amanagerofanunincorporatednonprofitassociation;
68 (j)Atrusteeofastatutorytrust,businesstrust,orcommon-lawbusinesstrust;
69or
70 (k)Anyotherpersonunderwhoseauthoritythepowersofanentityare
71exercisedandunderwhosedirectiontheactivitiesandaffairsoftheentityaremanaged
72pursuanttotheorganiclawandorganicrulesoftheentity;
73 (16)"Interest"means:
74 (a)Ashareinabusinesscorporation;
75 (b)Amembershipinanonprofitcorporation;
76 (c)Apartnershipinterestinageneralpartnership;
77 (d)Apartnershipinterestinalimitedpartnership;
78 (e)Amembershipinterestinalimitedliabilitycompany;
79 (f)Ashareinageneralcooperativeassociation;
80 (g)Amember'sinterestinalimitedcooperativeassociation;
81 (h)Amembershipinanunincorporatednonprofitassociation;
82 (i)Abeneficialinterestinastatutorytrust,businesstrust,orcommon-law
83businesstrust;or
84 (j)Agovernanceinterestordistributionalinterestinanyothertypeof
85unincorporatedentity;
86 (17)"Interestexchange"meansatransactionauthorizedbysections347.1188to
87347.1198;
88 (18)"Interestholder"means:
89 (a)Ashareholderofabusinesscorporation;
90 (b)Amemberofanonprofitcorporation;
91 (c)Ageneralpartnerofageneralpartnership;
92 (d)Ageneralpartnerofalimitedpartnership;
93 (e)Alimitedpartnerofalimitedpartnership;
94 (f)Amemberofalimitedliabilitycompany;
95 (g)Ashareholderofageneralcooperativeassociation;
96 (h)Amemberofalimitedcooperativeassociation;
97 (i)Amemberofanunincorporatednonprofitassociation;
98 (j)Abeneficiaryorbeneficialownerofastatutorytrust,businesstrust,or
99common-lawbusinesstrust;or
100 (k)Anyotherdirectholderofaninterest;
101 (19)"Interestholderliability"means:
102 (a)Personalliabilityforaliabilityofanentitywhichisimposedonaperson:
HCSSSSCSSBs3&69 61 103 a.Solelybyreasonofthestatusofthepersonasaninterestholder;or
104 b.Bytheorganicrulesoftheentitywhichmakeoneormorespecifiedinterest
105holdersorcategoriesofinterestholdersliableintheircapacityasinterestholdersforall
106orspecifiedliabilitiesoftheentity;or
107 (b)Anobligationofaninterestholderundertheorganicrulesofanentityto
108contributetotheentity;
109 (20)"Merger"meansatransactionauthorizedbysections347.1176to347.1186;
110 (21)"Mergingentity"meansanentitythatisapartytoamergerandexists
111immediatelybeforethemergerbecomeseffective;
112 (22)"Organiclaw"meansthelawofanentity'sjurisdictionofformation
113governingtheinternalaffairsoftheentity;
114 (23)"Organicrules"meansthepublicorganicrecordandprivateorganicrules
115ofanentity;
116 (24)"Plan"meansaplanofmerger,planofinterestexchange,planof
117conversion,orplanofdomestication;
118 (25)"Planofconversion"meansaplanundersection347.1202;
119 (26)"Planofdomestication"meansaplanundersection347.1214;
120 (27)"Planofinterestexchange"meansaplanundersection347.1190;
121 (28)"Planofmerger"meansaplanundersection347.1178;
122 (29)"Privateorganicrules"meanstherules,whetherinarecord,thatgovern
123theinternalaffairsofanentity,arebindingonallitsinterestholders,andarenotpartof
124itspublicorganicrecord,ifany.Thetermincludes:
125 (a)Thebylawsofabusinesscorporation;
126 (b)Thebylawsofanonprofitcorporation;
127 (c)Thepartnershipagreementofageneralpartnership;
128 (d)Thepartnershipagreementofalimitedpartnership;
129 (e)Theoperatingagreementofalimitedliabilitycompany;
130 (f)Thebylawsofageneralcooperativeassociation;
131 (g)Thebylawsofalimitedcooperativeassociation;
132 (h)Thegoverningprinciplesofanunincorporatednonprofitassociation;and
133 (i)Thetrustinstrumentofastatutorytrustorsimilarrulesofabusinesstrustor
134common-lawbusinesstrust;
135 (30)"Protectedagreement"means:
136 (a)Arecordevidencingindebtednessandanyrelatedagreementineffecton
137August28,2023;
138 (b)AnagreementthatisbindingonanentityonAugust28,2023;
139 (c)TheorganicrulesofanentityineffectonAugust28,2023;or
HCSSSSCSSBs3&69 62 140 (d)Anagreementthatisbindingonanyofthegovernorsorinterestholdersof
141anentityonAugust28,2023;
142 (31)"Publicorganicrecord"meanstherecordthefilingofwhichbythe
143secretaryofstateisrequiredtoformanentityandanyamendmenttoorrestatementof
144thatrecord.Thetermincludes:
145 (a)Thearticlesofincorporationofabusinesscorporation;
146 (b)Thearticlesofincorporationofanonprofitcorporation;
147 (c)Thecertificateoflimitedpartnershipofalimitedpartnership;
148 (d)Thecertificateoforganizationofalimitedliabilitycompany;
149 (e)Thearticlesofincorporationofageneralcooperativeassociation;
150 (f)Thearticlesoforganizationofalimitedcooperativeassociation;and
151 (g)Thecertificateoftrustofastatutorytrustorsimilarrecordofabusiness
152trust.
153 (32)"Registeredforeignentity"meansaforeignentitythatisregisteredtodo
154businessinthisstatepursuanttoarecordfiledbythesecretaryofstate;
155 (33)"Statementofconversion"meansastatementundersection347.1208;
156 (34)"Statementofdomestication"meansastatementundersection347.1220;
157 (35)"Statementofinterestexchange"meansastatementundersection
158347.1196;
159 (36)"Statementofmerger"meansastatementundersection347.1184;
160 (37)"Survivingentity"meanstheentitythatcontinuesinexistenceafteroris
161createdbyamerger;
162 (38)"Typeofentity"meansagenericformofentity:
163 (a)Recognizedatcommonlaw;or
164 (b)Formedunderanorganiclaw,whethersomeentitiesformedunderthat
165organiclawaresubjecttoprovisionsofthatlawthatcreatedifferentcategoriesofthe
166formofentity.
347.1166.1.Sections347.1164to347.1222donotauthorizeanactprohibitedby,
2anddonotaffecttheapplicationorrequirementsof,lawotherthansections347.1164to
3347.1222.
4 2.Atransactioneffectedundersections347.1164to347.1222shallnotcreateor
5impairaright,dutyorobligationofapersonunderthestatutorylawofthisstateother
6thansections347.1164to347.1222relatingtoachangeincontrol,takeover,business
7combination,control-shareacquisition,orsimilartransactioninvolvingadomestic
8merging,acquired,converting,ordomesticatingbusinesscorporationunless:
9 (1)Ifthecorporationdoesnotsurvivethetransaction,thetransactionsatisfies
10anyrequirementsofthelaw;or
HCSSSSCSSBs3&69 63 11 (2)Ifthecorporationsurvivesthetransaction,theapprovaloftheplanisbya
12voteoftheshareholdersordirectorswhichwouldbesufficienttocreateorimpairthe
13right,duty,orobligationdirectlyunderthelaw.
347.1168.1.Adomesticorforeignentitythatisrequiredtogivenoticeto,or
2obtaintheapprovalof,agovernmentalagencyorofficerofthisstatetobeapartytoa
3mergershallgivethenoticeorobtaintheapprovaltobeapartytoaninterestexchange,
4conversion,ordomestication.
5 2.Propertyheldforacharitablepurposeunderthelawofthisstatebya
6domesticorforeignentityimmediatelybeforeatransactionundersections347.1164to
7347.1222becomeseffectiveshallnot,asaresultofthetransaction,bedivertedfromthe
8objectsforwhichitwasdonated,granted,devised,orotherwisetransferredunless,to
9theextentrequiredbyorpursuanttothelawofthisstateconcerningcypresorother
10lawdealingwithnondiversionofcharitableassets,theentityobtainsanappropriate
11orderofacourtofcompetentjurisdictionspecifyingthedispositionoftheproperty.
12 3.Abequest,devise,gift,grant,orpromisecontainedinawillorother
13instrumentofdonation,subscription,orconveyancewhichismadetoamergingentity
14thatisnotthesurvivingentityandwhichtakeseffectorremainspayableafterthe
15mergerinurestothesurvivingentity.
16 4.Atrustobligationthatwouldgovernpropertyiftransferredtoanonsurviving
17entityappliestopropertythatistransferredtothesurvivingentityunderthissection.
347.1170.Thefactthatatransactionundersections347.1164to347.1222
2producesacertainresultdoesnotprecludethesameresultfrombeingaccomplishedin
3anyothermannerpermittedbylawotherthansections347.1164to347.1222.
347.1172.Aplanmayrefertofactsascertainableoutsidetheplanifthemanner
2inwhichthefactswilloperateupontheplanisspecifiedintheplan.Thefactsmay
3includetheoccurrenceofaneventoradeterminationoractionbyaperson,whetherthe
4event,determination,oractioniswithinthecontrolofapartytothetransaction.
347.1174.Aninterestholderofadomesticmerging,acquired,converting,or
2domesticatinglimitedliabilitycompanyisentitledtocontractualappraisalrightsin
3connectionwithatransactionundersections347.1164to347.1222totheextentprovided
4in:
5 (1)Theoperatingagreement;or
6 (2)Theplan.
347.1176.1.Bycomplyingwithsections347.1176to347.1186:
2 (1)Oneormoredomesticlimitedliabilitycompaniesmaymergewithoneor
3moredomesticorforeignentitiesintoadomesticorforeignsurvivingentity;and
HCSSSSCSSBs3&69 64 4 (2)Twoormoreforeignentitiesmaymergeintoadomesticlimitedliability
5company.
6 2.Bycomplyingwiththeprovisionsofsections347.1176to347.1186applicable
7toforeignentities,aforeignentitymaybeapartytoamergerundersections347.1176to
8347.1186ormaybethesurvivingentityinsuchamergerifthemergerisauthorizedby
9thelawoftheforeignentity'sjurisdictionofformation.
347.1178.1.Adomesticlimitedliabilitycompanymaybecomeapartytoa
2mergerundersections347.1176to347.1186byapprovingaplanofmerger.Theplan
3shallbeinarecordandcontain:
4 (1)Astoeachmergingentity,itsname,jurisdictionofformation,andtypeof
5entity;
6 (2)Ifthesurvivingentityistobecreatedinthemerger,astatementtothateffect
7andtheentity'sname,jurisdictionofformation,andtypeofentity;
8 (3)Themannerofconvertingtheinterestsineachpartytothemergerinto
9interests,securities,obligations,moneys,otherproperty,rightstoacquireinterestsor
10securities,oranycombinationoftheforegoing;
11 (4)Ifthesurvivingentityexistsbeforethemerger,anyproposedamendmentsto:
12 (a)Itspublicorganicrecord,ifany;and
13 (b)Itsprivateorganicrulesthatare,orareproposedtobe,inarecord;
14 (5)Ifthesurvivingentityistobecreatedinthemerger:
15 (a)Itsproposedpublicorganicrecord,ifany;and
16 (b)Thefulltextofitsprivateorganicrulesthatareproposedtobeinarecord;
17 (6)Theothertermsandconditionsofthemerger;and
18 (7)Anyotherprovisionrequiredbythelawofamergingentity'sjurisdictionof
19formationortheorganicrulesofamergingentity.
20 2.Inadditiontotherequirementsofsubsection1ofthissection,aplanof
21mergermaycontainanyotherprovisionnotprohibitedbylaw.
347.1180.1.Aplanofmergerisnoteffectiveunlessithasbeenapproved:
2 (1)Byadomesticmerginglimitedliabilitycompany,byallthemembersofthe
3companyentitledtovoteonorconsenttoanymatter;and
4 (2)Inarecord,byeachmemberofadomesticmerginglimitedliabilitycompany
5whichwillhaveinterestholderliabilityfordebts,obligations,andotherliabilitiesthat
6areincurredafterthemergerbecomeseffective,unless:
7 (a)Theoperatingagreementofthecompanyprovidesinarecordforthe
8approvalofamergerinwhichsomeorallofitsmembersbecomesubjecttointerest
9holderliabilitybytheaffirmativevoteorconsentoffewerthanallthemembers;and
HCSSSSCSSBs3&69 65 10 (b)Thememberconsentedinarecordtoorvotedforthatprovisionofthe
11operatingagreementorbecameamemberaftertheadoptionofthatprovision.
12 2.Amergerinvolvingadomesticmergingentitythatisnotalimitedliability
13companyisnoteffectiveunlessthemergerisapprovedbythatentityinaccordancewith
14itsorganiclaw.
15 3.Amergerinvolvingaforeignmergingentityisnoteffectiveunlessthemerger
16isapprovedbytheforeignentityinaccordancewiththelawoftheforeignentity's
17jurisdictionofformation.
347.1182.1.Aplanofmergermaybeamendedonlywiththeconsentofeach
2partytotheplan,exceptasotherwiseprovidedintheplan.
3 2.Adomesticmerginglimitedliabilitycompanymayapproveanamendmentof
4aplanofmerger:
5 (1)Inthesamemannerastheplanwasapproved,iftheplandoesnotprovide
6forthemannerinwhichitmaybeamended;or
7 (2)Byitsmanagersormembersinthemannerprovidedintheplan,buta
8memberthatwasentitledtovoteonorconsenttoapprovalofthemergerisentitledto
9voteonorconsenttoanyamendmentoftheplanthatwillchange:
10 (a)Theamountorkindofinterests,securities,obligations,moneys,other
11property,rightstoacquireinterestsorsecurities,oranycombinationoftheforegoing,to
12bereceivedbytheinterestholdersofanypartytotheplan;
13 (b)Thepublicorganicrecord,ifany,orprivateorganicrulesofthesurviving
14entitythatwillbeineffectimmediatelyafterthemergerbecomeseffective,exceptfor
15changesthatdonotrequireapprovaloftheinterestholdersofthesurvivingentity
16underitsorganiclawororganicrules;or
17 (c)Anyothertermsorconditionsoftheplan,ifthechangewouldadversely
18affectthememberinanymaterialrespect.
19 3.Afteraplanofmergerhasbeenapprovedandbeforeastatementofmerger
20becomeseffective,theplanmaybeabandonedasprovidedintheplan.Unless
21prohibitedbytheplan,adomesticmerginglimitedliabilitycompanymayabandonthe
22planinthesamemannerastheplanwasapproved.
23 4.Ifaplanofmergerisabandonedafterastatementofmergerhasbeen
24deliveredtothesecretaryofstateforfilingandbeforethestatementbecomeseffective,a
25statementofabandonment,signedbyapartytotheplan,shallbedeliveredtothe
26secretaryofstateforfilingbeforethestatementofmergerbecomeseffective.The
27statementofabandonmenttakeseffectonfiling,andthemergerisabandonedanddoes
28notbecomeeffective.Thestatementofabandonmentshallcontain:
29 (1)Thenameofeachpartytotheplanofmerger;
HCSSSSCSSBs3&69 66 30 (2)Thedateonwhichthestatementofmergerwasfiledbythesecretaryofstate;
31and
32 (3)Astatementthatthemergerhasbeenabandonedinaccordancewiththis
33section.
347.1184.1.Astatementofmergershallbesignedbyeachmergingentityand
2deliveredtothesecretaryofstateforfiling.
3 2.Astatementofmergershallcontain:
4 (1)Thename,jurisdictionofformation,andtypeofentityofeachmergingentity
5thatisnotthesurvivingentity;
6 (2)Thename,jurisdictionofformation,andtypeofentityofthesurviving
7entity;
8 (3)Astatementthatthemergerwasapprovedbyeachdomesticmergingentity,
9ifany,inaccordancewithsections347.1176to347.1186andbyeachforeignmerging
10entity,ifany,inaccordancewiththelawofitsjurisdictionofformation;
11 (4)Ifthesurvivingentityexistsbeforethemergerandisadomesticfilingentity,
12anyamendmenttoitspublicorganicrecordapprovedaspartoftheplanofmerger;
13 (5)Ifthesurvivingentityiscreatedbythemergerandisadomesticfilingentity,
14itspublicorganicrecord,asanattachment;and
15 (6)Ifthesurvivingentityiscreatedbythemergerandisadomesticlimited
16liabilitypartnership,itsstatementofqualification,asanattachment.
17 3.Inadditiontotherequirementsofsubsection2ofthissection,astatementof
18mergermaycontainanyotherprovisionnotprohibitedbylaw.
19 4.Ifthesurvivingentityisadomesticentity,itspublicorganicrecord,ifany,
20shallsatisfytherequirementsofthelawofthisstate,exceptthatthepublicorganic
21recorddoesnotneedtobesigned.
22 5.Aplanofmergerthatissignedbyallthemergingentitiesandmeetsallthe
23requirementsofsubsection2ofthissectionmaybedeliveredtothesecretaryofstatefor
24filinginsteadofastatementofmergerandonfilinghasthesameeffect.Ifaplanof
25mergerisfiledasprovidedinthissubsection,referencesinsections347.1164to347.1222
26toastatementofmergerrefertotheplanofmergerfiledunderthissubsection.
27 6.Ifthesurvivingentityisadomesticlimitedliabilitycompany,themerger
28becomeseffectivewhenthestatementofmergeriseffective.Inallothercases,the
29mergerbecomeseffectiveonthelaterof:
30 (1)Thedateandtimeprovidedbytheorganiclawofthesurvivingentity;and
31 (2)Whenthestatementiseffective.
347.1186.1.Whenamergerbecomeseffective:
2 (1)Thesurvivingentitycontinuesorcomesintoexistence;
HCSSSSCSSBs3&69 67 3 (2)Eachmergingentitythatisnotthesurvivingentityceasestoexist;
4 (3)Allpropertyofeachmergingentityvestsinthesurvivingentitywithout
5transfer,reversion,orimpairment;
6 (4)Alldebts,obligations,andotherliabilitiesofeachmergingentityaredebts,
7obligations,andotherliabilitiesofthesurvivingentity;
8 (5)Exceptasotherwiseprovidedbylawortheplanofmerger,alltherights,
9privileges,immunities,powers,andpurposesofeachmergingentityvestinthe
10survivingentity;
11 (6)Ifthesurvivingentityexistsbeforethemerger:
12 (a)Allitspropertycontinuestobevestedinitwithouttransfer,reversion,or
13impairment;
14 (b)Itremainssubjecttoallitsdebts,obligations,andotherliabilities;and
15 (c)Allitsrights,privileges,immunities,powers,andpurposescontinuetobe
16vestedinit;
17 (7)Thenameofthesurvivingentitymaybesubstitutedforthenameofany
18mergingentitythatisapartytoanypendingactionorproceeding;
19 (8)Ifthesurvivingentityexistsbeforethemerger:
20 (a)Itspublicorganicrecord,ifany,isamendedtotheextentprovidedinthe
21statementofmerger;and
22 (b)Itsprivateorganicrulesthataretobeinarecord,ifany,areamendedtothe
23extentprovidedintheplanofmerger;
24 (9)Ifthesurvivingentityiscreatedbythemerger,itsprivateorganicrulesare
25effectiveand:
26 (a)Ifitisafilingentity,itspublicorganicrecordbecomeseffective;and
27 (b)Ifitisalimitedliabilitypartnership,itsstatementofqualificationbecomes
28effective;and
29 (10)Theinterestsineachmergingentitywhicharetobeconvertedinthemerger
30areconverted,andtheinterestholdersofthoseinterestsareentitledonlytotherights
31providedtothemundertheplanofmergerandtoanyappraisalrightstheyhaveunder
32section347.1174andthemergingentity'sorganiclaw.
33 2.Exceptasotherwiseprovidedintheorganiclawororganicrulesofamerging
34entity,themergerdoesnotgiverisetoanyrightsthataninterestholder,governor,or
35thirdpartywouldhaveuponadissolution,liquidation,orwindingupofthemerging
36entity.
37 3.Whenamergerbecomeseffective,apersonthatdidnothaveinterestholder
38liabilitywithrespecttoanyofthemergingentitiesandbecomessubjecttointerest
39holderliabilitywithrespecttoadomesticentityasaresultofthemergerhasinterest
HCSSSSCSSBs3&69 68 40holderliabilityonlytotheextentprovidedbytheorganiclawofthatentityandonlyfor
41thosedebts,obligations,andotherliabilitiesthatareincurredafterthemergerbecomes
42effective.
43 4.Whenamergerbecomeseffective,theinterestholderliabilityofapersonthat
44ceasestoholdaninterestinadomesticmerginglimitedliabilitycompanywithrespectto
45whichthepersonhadinterestholderliabilityissubjecttothefollowingrules:
46 (1)Themergerdoesnotdischargeanyinterestholderliabilityundersections
47347.1000to347.1228totheextenttheinterestholderliabilitywasincurredbeforethe
48mergerbecameeffective;
49 (2)Thepersondoesnothaveinterestholderliabilityundersections347.1000to
50347.1228foranydebt,obligation,orotherliabilitythatisincurredafterthemerger
51becomeseffective;
52 (3)Sections347.1000to347.1228continuetoapplytotherelease,collection,or
53dischargeofanyinterestholderliabilitypreservedundersubdivision(1)ofthis
54subsectionasifthemergerhadnotoccurred;
55 (4)Thepersonhasallrightsofcontributionfromanyotherpersonasare
56providedbysections347.1000to347.1228,lawotherthansections347.1000to347.1228,
57ortheoperatingagreementofthedomesticmerginglimitedliabilitycompanywith
58respecttoanyinterestholderliabilitypreservedundersubdivision(1)ofthissubsection
59asifthemergerhadnotoccurred.
60 5.Whenamergerbecomeseffective,aforeignentitythatisthesurvivingentity
61maybeservedwithprocessinthisstateforthecollectionandenforcementofanydebts,
62obligations,orotherliabilitiesofadomesticmerginglimitedliabilitycompanyas
63providedinsection347.1036.
64 6.Whenamergerbecomeseffective,theregistrationtodobusinessinthisstate
65ofanyforeignmergingentitythatisnotthesurvivingentityiscancelled.
347.1188.1.Bycomplyingwithsections347.1188to347.1198:
2 (1)Adomesticlimitedliabilitycompanymayacquireallofoneormoreclasses
3orseriesofinterestsofanotherdomesticentityoraforeignentityinexchangefor
4interests,securities,obligations,moneys,otherproperty,rightstoacquireinterestsor
5securities,oranycombinationoftheforegoing;or
6 (2)Allofoneormoreclassesorseriesofinterestsofadomesticlimitedliability
7companymaybeacquiredbyanotherdomesticentityoraforeignentityinexchangefor
8interests,securities,obligations,moneys,otherproperty,rightstoacquireinterestsor
9securities,oranycombinationoftheforegoing.
10 2.Bycomplyingwiththeprovisionsofsections347.1188to347.1198applicable
11toforeignentities,aforeignentitymaybetheacquiringoracquiredentityinaninterest
HCSSSSCSSBs3&69 69 12exchangeundersections347.1188to347.1198iftheinterestexchangeisauthorizedby
13thelawoftheforeignentity'sjurisdictionofformation.
14 3.Ifaprotectedagreementcontainsaprovisionthatappliestoamergerofa
15domesticlimitedliabilitycompanybutdoesnotrefertoaninterestexchange,the
16provisionappliestoaninterestexchangeinwhichthedomesticlimitedliability
17companyistheacquiredentityasiftheinterestexchangewereamergeruntilthe
18provisionisamendedafterAugust28,2023.
347.1190.1.Adomesticlimitedliabilitycompanymaybetheacquiredentityin
2aninterestexchangeundersections347.1188to347.1198byapprovingaplanofinterest
3exchange.Theplanshallbeinarecordandcontain:
4 (1)Thenameoftheacquiredentity;
5 (2)Thename,jurisdictionofformation,andtypeofentityoftheacquiring
6entity;
7 (3)Themannerofconvertingtheinterestsintheacquiredentityintointerests,
8securities,obligations,moneys,otherproperty,rightstoacquireinterestsorsecurities,
9oranycombinationoftheforegoing;
10 (4)Anyproposedamendmentsto:
11 (a)Thecertificateoforganizationoftheacquiredentity;and
12 (b)Theoperatingagreementoftheacquiredentitythatare,orareproposedto
13be,inarecord;
14 (5)Theothertermsandconditionsoftheinterestexchange;and
15 (6)Anyotherprovisionrequiredbythelawofthisstateortheoperating
16agreementoftheacquiredentity.
17 2.Inadditiontotherequirementsofsubsection1ofthissection,aplanof
18interestexchangemaycontainanyotherprovisionnotprohibitedbylaw.
347.1192.1.Aplanofinterestexchangeisnoteffectiveunlessithasbeen
2approved:
3 (1)Byallthemembersofadomesticacquiredlimitedliabilitycompanyentitled
4tovoteonorconsenttoanymatter;and
5 (2)Inarecord,byeachmemberofthedomesticacquiredlimitedliability
6companythatwillhaveinterestholderliabilityfordebts,obligations,andother
7liabilitiesthatareincurredaftertheinterestexchangebecomeseffective,unless:
8 (a)Theoperatingagreementofthecompanyprovidesinarecordforthe
9approvalofaninterestexchangeoramergerinwhichsomeorallofitsmembers
10becomesubjecttointerestholderliabilitybytheaffirmativevoteorconsentoffewer
11thanallthemembers;and
HCSSSSCSSBs3&69 70 12 (b)Thememberconsentedinarecordtoorvotedforthatprovisionofthe
13operatingagreementorbecameamemberaftertheadoptionofthatprovision.
14 2.Aninterestexchangeinvolvingadomesticacquiredentitythatisnotalimited
15liabilitycompanyisnoteffectiveunlessitisapprovedbythedomesticentityin
16accordancewithitsorganiclaw.
17 3.Aninterestexchangeinvolvingaforeignacquiredentityisnoteffectiveunless
18itisapprovedbytheforeignentityinaccordancewiththelawoftheforeignentity's
19jurisdictionofformation.
20 4.Exceptasotherwiseprovidedinitsorganiclawororganicrules,theinterest
21holdersoftheacquiringentityarenotrequiredtoapprovetheinterestexchange.
347.1194.1.Aplanofinterestexchangemaybeamendedonlywiththeconsent
2ofeachpartytotheplan,exceptasotherwiseprovidedintheplan.
3 2.Adomesticacquiredlimitedliabilitycompanymayapproveanamendmentof
4aplanofinterestexchange:
5 (1)Inthesamemannerastheplanwasapproved,iftheplandoesnotprovide
6forthemannerinwhichitmaybeamended;or
7 (2)Byitsmanagersormembersinthemannerprovidedintheplan,buta
8memberthatwasentitledtovoteonorconsenttoapprovaloftheinterestexchangeis
9entitledtovoteonorconsenttoanyamendmentoftheplanthatwillchange:
10 (a)Theamountorkindofinterests,securities,obligations,moneys,other
11property,rightstoacquireinterestsorsecurities,oranycombinationoftheforegoing,to
12bereceivedbyanyofthemembersoftheacquiredcompanyundertheplan;
13 (b)Thecertificateoforganizationoroperatingagreementoftheacquired
14companythatwillbeineffectimmediatelyaftertheinterestexchangebecomeseffective,
15exceptforchangesthatdonotrequireapprovalofthemembersoftheacquired
16companyundersections347.1000to347.1228ortheoperatingagreement;or
17 (c)Anyothertermsorconditionsoftheplan,ifthechangewouldadversely
18affectthememberinanymaterialrespect.
19 3.Afteraplanofinterestexchangehasbeenapprovedandbeforeastatementof
20interestexchangebecomeseffective,theplanmaybeabandonedasprovidedintheplan.
21Unlessprohibitedbytheplan,adomesticacquiredlimitedliabilitycompanymay
22abandontheplaninthesamemannerastheplanwasapproved.
23 4.Ifaplanofinterestexchangeisabandonedafterastatementofinterest
24exchangehasbeendeliveredtothesecretaryofstateforfilingandbeforethestatement
25becomeseffective,astatementofabandonment,signedbytheacquiredlimitedliability
26company,shallbedeliveredtothesecretaryofstateforfilingbeforethestatementof
27interestexchangebecomeseffective.Thestatementofabandonmenttakeseffecton
HCSSSSCSSBs3&69 71 28filing,andtheinterestexchangeisabandonedanddoesnotbecomeeffective.The
29statementofabandonmentshallcontain:
30 (1)Thenameoftheacquiredcompany;
31 (2)Thedateonwhichthestatementofinterestexchangewasfiledbythe
32secretaryofstate;and
33 (3)Astatementthattheinterestexchangehasbeenabandonedinaccordance
34withthissection.
347.1196.1.Astatementofinterestexchangeshallbesignedbyadomestic
2acquiredlimitedliabilitycompanyanddeliveredtothesecretaryofstateforfiling.
3 2.Astatementofinterestexchangeshallcontain:
4 (1)Thenameoftheacquiredlimitedliabilitycompany;
5 (2)Thename,jurisdictionofformation,andtypeofentityoftheacquiring
6entity;
7 (3)Astatementthattheplanofinterestexchangewasapprovedbytheacquired
8companyinaccordancewithsections347.1188to347.1198;and
9 (4)Anyamendmentstotheacquiredcompany'scertificateoforganization
10approvedaspartoftheplanofinterestexchange.
11 3.Inadditiontotherequirementsofsubsection2ofthissection,astatementof
12interestexchangemaycontainanyotherprovisionnotprohibitedbylaw.
13 4.Aplanofinterestexchangethatissignedbyadomesticacquiredlimited
14liabilitycompanyandmeetsalltherequirementsofsubsection2ofthissectionmaybe
15deliveredtothesecretaryofstateforfilinginsteadofastatementofinterestexchange
16andonfilinghasthesameeffect.Ifaplanofinterestexchangeisfiledasprovidedin
17thissubsection,referencesinsections347.1164to347.1222toastatementofinterest
18exchangerefertotheplanofinterestexchangefiledunderthissubsection.
19 5.Aninterestexchangebecomeseffectivewhenthestatementofinterest
20exchangeiseffective.
347.1198.1.Whenaninterestexchangeinwhichtheacquiredentityisa
2domesticlimitedliabilitycompanybecomeseffective:
3 (1)Theinterestsintheacquiredcompanywhicharethesubjectoftheinterest
4exchangeareconverted,andthemembersholdingthoseinterestsareentitledonlytothe
5rightsprovidedtothemundertheplanofinterestexchangeandtoanyappraisalrights
6theyhaveundersection347.1174;
7 (2)Theacquiringentitybecomestheinterestholderoftheinterestsinthe
8acquiredcompanystatedintheplanofinterestexchangetobeacquiredbythe
9acquiringentity;
HCSSSSCSSBs3&69 72 10 (3)Thecertificateoforganizationoftheacquiredcompanyisamendedtothe
11extentprovidedinthestatementofinterestexchange;and
12 (4)Theprovisionsoftheoperatingagreementoftheacquiredcompanythatare
13tobeinarecord,ifany,areamendedtotheextentprovidedintheplanofinterest
14exchange.
15 2.Exceptasotherwiseprovidedintheoperatingagreementofadomestic
16acquiredlimitedliabilitycompany,theinterestexchangedoesnotgiverisetoanyrights
17thatamember,manager,orthirdpartywouldhaveuponadissolution,liquidation,or
18windingupoftheacquiredcompany.
19 3.Whenaninterestexchangebecomeseffective,apersonthatdidnothave
20interestholderliabilitywithrespecttoadomesticacquiredlimitedliabilitycompany
21andbecomessubjecttointerestholderliabilitywithrespecttoadomesticentityasa
22resultoftheinterestexchangehasinterestholderliabilityonlytotheextentprovidedby
23theorganiclawoftheentityandonlyforthosedebts,obligations,andotherliabilities
24thatareincurredaftertheinterestexchangebecomeseffective.
25 4.Whenaninterestexchangebecomeseffective,theinterestholderliabilityofa
26personthatceasestoholdaninterestinadomesticacquiredlimitedliabilitycompany
27withrespecttowhichthepersonhadinterestholderliabilityissubjecttothefollowing
28rules:
29 (1)Theinterestexchangedoesnotdischargeanyinterestholderliabilityunder
30sections347.1000to347.1228totheextenttheinterestholderliabilitywasincurred
31beforetheinterestexchangebecameeffective;
32 (2)Thepersondoesnothaveinterestholderliabilityundersections347.1000to
33347.1228foranydebt,obligation,orotherliabilitythatisincurredaftertheinterest
34exchangebecomeseffective;
35 (3)Sections347.1000to347.1228continuetoapplytotherelease,collection,or
36dischargeofanyinterestholderliabilitypreservedundersubdivision(1)ofthis
37subsectionasiftheinterestexchangehadnotoccurred;
38 (4)Thepersonhasallrightsofcontributionfromanyotherpersonasare
39providedbysections347.1000to347.1228,lawotherthansections347.1000to347.1228,
40ortheoperatingagreementoftheacquiredcompanywithrespecttoanyinterestholder
41liabilitypreservedundersubdivision(1)ofthissubsectionasiftheinterestexchange
42hadnotoccurred.
347.1200.1.Bycomplyingwithsections347.1200to347.1210,adomesticlimited
2liabilitycompanymaybecome:
3 (1)Adomesticentitythatisadifferenttypeofentity;or
HCSSSSCSSBs3&69 73 4 (2)Aforeignentitythatisadifferenttypeofentity,iftheconversionis
5authorizedbythelawoftheforeignentity'sjurisdictionofformation.
6 2.Bycomplyingwiththeprovisionsofsections347.1200to347.1210applicable
7toforeignentities,aforeignentitythatisnotaforeignlimitedliabilitycompanymay
8becomeadomesticlimitedliabilitycompanyiftheconversionisauthorizedbythelawof
9theforeignentity'sjurisdictionofformation.
10 3.Ifaprotectedagreementcontainsaprovisionthatappliestoamergerofa
11domesticlimitedliabilitycompanybutdoesnotrefertoaconversion,theprovision
12appliestoaconversionofthecompanyasiftheconversionwereamergeruntilthe
13provisionisamendedafterAugust28,2023.
347.1202.1.Adomesticlimitedliabilitycompanymayconverttoadifferent
2typeofentityundersections347.1200to347.1210byapprovingaplanofconversion.
3Theplanshallbeinarecordandcontain:
4 (1)Thenameoftheconvertinglimitedliabilitycompany;
5 (2)Thename,jurisdictionofformation,andtypeofentityoftheconverted
6entity;
7 (3)Themannerofconvertingtheinterestsintheconvertinglimitedliability
8companyintointerests,securities,obligations,moneys,otherproperty,rightstoacquire
9interestsorsecurities,oranycombinationoftheforegoing;
10 (4)Theproposedpublicorganicrecordoftheconvertedentityifitwillbea
11filingentity;
12 (5)Thefulltextoftheprivateorganicrulesoftheconvertedentitywhichare
13proposedtobeinarecord;
14 (6)Theothertermsandconditionsoftheconversion;and
15 (7)Anyotherprovisionrequiredbythelawofthisstateortheoperating
16agreementoftheconvertinglimitedliabilitycompany.
17 2.Inadditiontotherequirementsofsubsection1ofthissection,aplanof
18conversionmaycontainanyotherprovisionnotprohibitedbylaw.
347.1204.1.Aplanofconversionisnoteffectiveunlessithasbeenapproved:
2 (1)Byadomesticconvertinglimitedliabilitycompany,byallthemembersofthe
3limitedliabilitycompanyentitledtovoteonorconsenttoanymatter;and
4 (2)Inarecord,byeachmemberofadomesticconvertinglimitedliability
5companywhichwillhaveinterestholderliabilityfordebts,obligations,andother
6liabilitiesthatareincurredaftertheconversionbecomeseffective,unless:
7 (a)Theoperatingagreementofthecompanyprovidesinarecordforthe
8approvalofaconversionoramergerinwhichsomeorallofitsmembersbecome
HCSSSSCSSBs3&69 74 9subjecttointerestholderliabilitybytheaffirmativevoteorconsentoffewerthanallthe
10members;and
11 (b)Themembervotedfororconsentedinarecordtothatprovisionofthe
12operatingagreementorbecameamemberaftertheadoptionofthatprovision.
13 2.Aconversioninvolvingadomesticconvertingentitythatisnotalimited
14liabilitycompanyisnoteffectiveunlessitisapprovedbythedomesticconvertingentity
15inaccordancewithitsorganiclaw.
16 3.Aconversionofaforeignconvertingentityisnoteffectiveunlessitis
17approvedbytheforeignentityinaccordancewiththelawoftheforeignentity's
18jurisdictionofformation.
347.1206.1.Aplanofconversionofadomesticconvertinglimitedliability
2companymaybeamended:
3 (1)Inthesamemannerastheplanwasapproved,iftheplandoesnotprovide
4forthemannerinwhichitmaybeamended;or
5 (2)Byitsmanagersormembersinthemannerprovidedintheplan,buta
6memberthatwasentitledtovoteonorconsenttoapprovaloftheconversionisentitled
7tovoteonorconsenttoanyamendmentoftheplanthatwillchange:
8 (a)Theamountorkindofinterests,securities,obligations,moneys,other
9property,rightstoacquireinterestsorsecurities,oranycombinationoftheforegoing,to
10bereceivedbyanyofthemembersoftheconvertingcompanyundertheplan;
11 (b)Thepublicorganicrecord,ifany,orprivateorganicrulesoftheconverted
12entitywhichwillbeineffectimmediatelyaftertheconversionbecomeseffective,except
13forchangesthatdonotrequireapprovaloftheinterestholdersoftheconvertedentity
14underitsorganiclawororganicrules;or
15 (c)Anyothertermsorconditionsoftheplan,ifthechangewouldadversely
16affectthememberinanymaterialrespect.
17 2.Afteraplanofconversionhasbeenapprovedbyadomesticconverting
18limitedliabilitycompanyandbeforeastatementofconversionbecomeseffective,the
19planmaybeabandonedasprovidedintheplan.Unlessprohibitedbytheplan,a
20domesticconvertinglimitedliabilitycompanymayabandontheplaninthesame
21mannerastheplanwasapproved.
22 3.Ifaplanofconversionisabandonedafterastatementofconversionhasbeen
23deliveredtothesecretaryofstateforfilingandbeforethestatementbecomeseffective,a
24statementofabandonment,signedbytheconvertingentity,shallbedeliveredtothe
25secretaryofstateforfilingbeforethestatementofconversionbecomeseffective.The
26statementofabandonmenttakeseffectonfiling,andtheconversionisabandonedand
27doesnotbecomeeffective.Thestatementofabandonmentshallcontain:
HCSSSSCSSBs3&69 75 28 (1)Thenameoftheconvertinglimitedliabilitycompany;
29 (2)Thedateonwhichthestatementofconversionwasfiledbythesecretaryof
30state;and
31 (3)Astatementthattheconversionhasbeenabandonedinaccordancewiththis
32section.
347.1208.1.Astatementofconversionshallbesignedbytheconvertingentity
2anddeliveredtothesecretaryofstateforfiling.
3 2.Astatementofconversionshallcontain:
4 (1)Thename,jurisdictionofformation,andtypeofentityoftheconverting
5entity;
6 (2)Thename,jurisdictionofformation,andtypeofentityoftheconverted
7entity;
8 (3)Iftheconvertingentityisadomesticlimitedliabilitycompany,astatement
9thattheplanofconversionwasapprovedinaccordancewithsections347.1200to
10347.1210or,iftheconvertingentityisaforeignentity,astatementthattheconversion
11wasapprovedbytheforeignentityinaccordancewiththelawofitsjurisdictionof
12formation;
13 (4)Iftheconvertedentityisadomesticfilingentity,itspublicorganicrecord,as
14anattachment;and
15 (5)Iftheconvertedentityisadomesticlimitedliabilitypartnership,its
16statementofqualification,asanattachment.
17 3.Inadditiontotherequirementsofsubsection2ofthissection,astatementof
18conversionmaycontainanyotherprovisionnotprohibitedbylaw.
19 4.Iftheconvertedentityisadomesticentity,itspublicorganicrecord,ifany,
20shallsatisfytherequirementsofthelawofthisstate,exceptthatthepublicorganic
21recorddoesnotneedtobesigned.
22 5.Aplanofconversionthatissignedbyadomesticconvertinglimitedliability
23companyandmeetsalltherequirementsofsubsection2ofthissectionmaybedelivered
24tothesecretaryofstateforfilinginsteadofastatementofconversionandonfilinghas
25thesameeffect.Ifaplanofconversionisfiledasprovidedinthissubsection,references
26insections347.1164to347.1222toastatementofconversionrefertotheplanof
27conversionfiledunderthissubsection.
28 6.Iftheconvertedentityisadomesticlimitedliabilitycompany,theconversion
29becomeseffectivewhenthestatementofconversioniseffective.Inallothercases,the
30conversionbecomeseffectiveonthelaterof:
31 (1)Thedateandtimeprovidedbytheorganiclawoftheconvertedentity;and
32 (2)Whenthestatementiseffective.
HCSSSSCSSBs3&69 76 347.1210.1.Whenaconversionbecomeseffective:
2 (1)Theconvertedentityis:
3 (a)Organizedunderandsubjecttotheorganiclawoftheconvertedentity;and
4 (b)Thesameentitywithoutinterruptionastheconvertingentity;
5 (2)Allpropertyoftheconvertingentitycontinuestobevestedintheconverted
6entitywithouttransfer,reversion,orimpairment;
7 (3)Alldebts,obligations,andotherliabilitiesoftheconvertingentitycontinueas
8debts,obligations,andotherliabilitiesoftheconvertedentity;
9 (4)Exceptasotherwiseprovidedbylawortheplanofconversion,alltherights,
10privileges,immunities,powers,andpurposesoftheconvertingentityremaininthe
11convertedentity;
12 (5)Thenameoftheconvertedentitymaybesubstitutedforthenameofthe
13convertingentityinanypendingactionorproceeding;
14 (6)Thecertificateoforganizationoftheconvertedentitybecomeseffective;
15 (7)Theprovisionsoftheoperatingagreementoftheconvertedentitywhichare
16tobeinarecord,ifany,approvedaspartoftheplanofconversionbecomeeffective;
17and
18 (8)Theinterestsintheconvertingentityareconverted,andtheinterestholders
19oftheconvertingentityareentitledonlytotherightsprovidedtothemundertheplanof
20conversionandtoanyappraisalrightstheyhaveundersection347.1174.
21 2.Exceptasotherwiseprovidedintheoperatingagreementofadomestic
22convertinglimitedliabilitycompany,theconversiondoesnotgiverisetoanyrightsthat
23amember,manager,orthirdpartywouldhaveuponadissolution,liquidation,or
24windingupoftheconvertingentity.
25 3.Whenaconversionbecomeseffective,apersonthatdidnothaveinterest
26holderliabilitywithrespecttotheconvertingentityandbecomessubjecttointerest
27holderliabilitywithrespecttoadomesticentityasaresultoftheconversionhasinterest
28holderliabilityonlytotheextentprovidedbytheorganiclawoftheentityandonlyfor
29thosedebts,obligations,andotherliabilitiesthatareincurredaftertheconversion
30becomeseffective.
31 4.Whenaconversionbecomeseffective,theinterestholderliabilityofaperson
32thatceasestoholdaninterestinadomesticconvertinglimitedliabilitycompanywith
33respecttowhichthepersonhadinterestholderliabilityissubjecttothefollowingrules:
34 (1)Theconversiondoesnotdischargeanyinterestholderliabilityundersections
35347.1000to347.1228totheextenttheinterestholderliabilitywasincurredbeforethe
36conversionbecameeffective;
HCSSSSCSSBs3&69 77 37 (2)Thepersondoesnothaveinterestholderliabilityundersections347.1000to
38347.1228foranydebt,obligation,orotherliabilitythatarisesaftertheconversion
39becomeseffective;
40 (3)Sections347.1000to347.1228continuetoapplytotherelease,collection,or
41dischargeofanyinterestholderliabilitypreservedundersubdivision(1)ofthis
42subsectionasiftheconversionhadnotoccurred;
43 (4)Thepersonhasallrightsofcontributionfromanyotherpersonasare
44providedbysections347.1000to347.1228,lawotherthansections347.1000to347.1228,
45ortheorganicrulesoftheconvertingentitywithrespecttoanyinterestholderliability
46preservedundersubdivision(1)ofthissubsectionasiftheconversionhadnotoccurred.
47 5.Whenaconversionbecomeseffective,aforeignentitythatistheconverted
48entitymaybeservedwithprocessinthisstateforthecollectionandenforcementofany
49ofitsdebts,obligations,andotherliabilitiesasprovidedinsection347.1036.
50 6.Iftheconvertingentityisaregisteredforeignentity,itsregistrationtodo
51businessinthisstateiscancelledwhentheconversionbecomeseffective.
52 7.Aconversiondoesnotrequiretheentitytowindupitsaffairsanddoesnot
53constituteorcausethedissolutionoftheentity.
347.1212.1.Bycomplyingwithsections347.1212to347.1222,adomesticlimited
2liabilitycompanymaybecomeaforeignlimitedliabilitycompanyifthedomesticationis
3authorizedbythelawoftheforeignjurisdiction.
4 2.Bycomplyingwiththeprovisionsofsections347.1212to347.1222applicable
5toforeignlimitedliabilitycompanies,aforeignlimitedliabilitycompanymaybecomea
6domesticlimitedliabilitycompanyifthedomesticationisauthorizedbythelawofthe
7foreignlimitedliabilitycompany'sjurisdictionofformation.
8 3.Ifaprotectedagreementcontainsaprovisionthatappliestoamergerofa
9domesticlimitedliabilitycompanybutdoesnotrefertoadomestication,theprovision
10appliestoadomesticationofthelimitedliabilitycompanyasifthedomesticationwerea
11mergeruntiltheprovisionisamendedafterAugust28,2023.
347.1214.1.Adomesticlimitedliabilitycompanymaybecomeaforeignlimited
2liabilitycompanyinadomesticationbyapprovingaplanofdomestication.Theplan
3shallbeinarecordandcontain:
4 (1)Thenameofthedomesticatinglimitedliabilitycompany;
5 (2)Thenameandjurisdictionofformationofthedomesticatedlimitedliability
6company;
7 (3)Themannerofconvertingtheinterestsinthedomesticatinglimitedliability
8companyintointerests,securities,obligations,moneys,otherproperty,rightstoacquire
9interestsorsecurities,oranycombinationoftheforegoing;
HCSSSSCSSBs3&69 78 10 (4)Theproposedcertificateoforganizationofthedomesticatedlimitedliability
11company;
12 (5)Thefulltextoftheprovisionsoftheoperatingagreementofthedomesticated
13limitedliabilitycompanythatareproposedtobeinarecord;
14 (6)Theothertermsandconditionsofthedomestication;and
15 (7)Anyotherprovisionrequiredbythelawofthisstateortheoperating
16agreementofthedomesticatinglimitedliabilitycompany.
17 2.Inadditiontotherequirementsofsubsection1ofthissection,aplanof
18domesticationmaycontainanyotherprovisionnotprohibitedbylaw.
347.1216.1.Aplanofdomesticationofadomesticdomesticatinglimited
2liabilitycompanyisnoteffectiveunlessithasbeenapproved:
3 (1)Byallthemembersentitledtovoteonorconsenttoanymatter;and
4 (2)Inarecord,byeachmemberthatwillhaveinterestholderliabilityfordebts,
5obligations,andotherliabilitiesthatareincurredafterthedomesticationbecomes
6effective,unless:
7 (a)Theoperatingagreementofthedomesticatingcompanyinarecordprovides
8fortheapprovalofadomesticationormergerinwhichsomeorallofitsmembers
9becomesubjecttointerestholderliabilitybytheaffirmativevoteorconsentoffewer
10thanallthemembers;and
11 (b)Themembervotedfororconsentedinarecordtothatprovisionofthe
12operatingagreementorbecameamemberaftertheadoptionofthatprovision.
13 2.Adomesticationofaforeigndomesticatinglimitedliabilitycompanyisnot
14effectiveunlessitisapprovedinaccordancewiththelawoftheforeignlimitedliability
15company'sjurisdictionofformation.
347.1218.1.Aplanofdomesticationofadomesticdomesticatinglimited
2liabilitycompanymaybeamended:
3 (1)Inthesamemannerastheplanwasapproved,iftheplandoesnotprovide
4forthemannerinwhichitmaybeamended;or
5 (2)Byitsmanagersormembersinthemannerprovidedintheplan,buta
6memberthatwasentitledtovoteonorconsenttoapprovalofthedomesticationis
7entitledtovoteonorconsenttoanyamendmentoftheplanthatwillchange:
8 (a)Theamountorkindofinterests,securities,obligations,moneys,other
9property,rightstoacquireinterestsorsecurities,oranycombinationoftheforegoing,to
10bereceivedbyanyofthemembersofthedomesticatinglimitedliabilitycompanyunder
11theplan;
12 (b)Thecertificateoforganizationoroperatingagreementofthedomesticated
13limitedliabilitycompanythatwillbeineffectimmediatelyafterthedomestication
HCSSSSCSSBs3&69 79 14becomeseffective,exceptforchangesthatdonotrequireapprovalofthemembersofthe
15domesticatedlimitedliabilitycompanyunderitsorganiclaworoperatingagreement;or
16 (c)Anyothertermsorconditionsoftheplan,ifthechangewouldadversely
17affectthememberinanymaterialrespect.
18 2.Afteraplanofdomesticationhasbeenapprovedbyadomesticdomesticating
19limitedliabilitycompanyandbeforeastatementofdomesticationbecomeseffective,the
20planmaybeabandonedasprovidedintheplan.Unlessprohibitedbytheplan,a
21domesticdomesticatinglimitedliabilitycompanymayabandontheplaninthesame
22mannerastheplanwasapproved.
23 3.Ifaplanofdomesticationisabandonedafterastatementofdomesticationhas
24beendeliveredtothesecretaryofstateforfilingandbeforethestatementbecomes
25effective,astatementofabandonment,signedbythedomesticatinglimitedliability
26company,shallbedeliveredtothesecretaryofstateforfilingbeforethestatementof
27domesticationbecomeseffective.Thestatementofabandonmenttakeseffectonfiling,
28andthedomesticationisabandonedanddoesnotbecomeeffective.Thestatementof
29abandonmentshallcontain:
30 (1)Thenameofthedomesticatinglimitedliabilitycompany;
31 (2)Thedateonwhichthestatementofdomesticationwasfiledbythesecretary
32ofstate;and
33 (3)Astatementthatthedomesticationhasbeenabandonedinaccordancewith
34thissection.
347.1220.1.Astatementofdomesticationshallbesignedbythedomesticating
2limitedliabilitycompanyanddeliveredtothesecretaryofstateforfiling.
3 2.Astatementofdomesticationshallcontain:
4 (1)Thenameandjurisdictionofformationofthedomesticatinglimitedliability
5company;
6 (2)Thenameandjurisdictionofformationofthedomesticatedlimitedliability
7company;
8 (3)Ifthedomesticatinglimitedliabilitycompanyisadomesticlimitedliability
9company,astatementthattheplanofdomesticationwasapprovedinaccordancewith
10sections347.1212to347.1222or,ifthedomesticatinglimitedliabilitycompanyisa
11foreignlimitedliabilitycompany,astatementthatthedomesticationwasapprovedin
12accordancewiththelawofitsjurisdictionofformation;and
13 (4)Thecertificateoforganizationofthedomesticatedlimitedliabilitycompany,
14asanattachment.
15 3.Inadditiontotherequirementsofsubsection2ofthissection,astatementof
16domesticationmaycontainanyotherprovisionnotprohibitedbylaw.
HCSSSSCSSBs3&69 80 17 4.Thecertificateoforganizationofadomesticdomesticatedlimitedliability
18companyshallsatisfytherequirementsofsections347.1000to347.1228,butthe
19certificatedoesnotneedtobesigned.
20 5.Aplanofdomesticationthatissignedbyadomesticatingdomesticlimited
21liabilitycompanyandmeetsalltherequirementsofsubsection2ofthissectionmaybe
22deliveredtothesecretaryofstateforfilinginsteadofastatementofdomesticationand
23onfilinghasthesameeffect.Ifaplanofdomesticationisfiledasprovidedinthis
24subsection,referencesinsections347.1164to347.1222toastatementofdomestication
25refertotheplanofdomesticationfiledunderthissubsection.
26 6.Ifthedomesticatedentityisadomesticlimitedliabilitycompany,the
27domesticationbecomeseffectivewhenthestatementofdomesticationiseffective.Ifthe
28domesticatedentityisaforeignlimitedliabilitycompany,thedomesticationbecomes
29effectiveonthelaterof:
30 (1)Thedateandtimeprovidedbytheorganiclawofthedomesticatedentity;
31and
32 (2)Whenthestatementiseffective.
347.1222.1.Whenadomesticationbecomeseffective:
2 (1)Thedomesticatedentityis:
3 (a)Organizedunderandsubjecttotheorganiclawofthedomesticatedentity;
4and
5 (b)Thesameentitywithoutinterruptionasthedomesticatingentity;
6 (2)Allpropertyofthedomesticatingentitycontinuestobevestedinthe
7domesticatedentitywithouttransfer,reversion,orimpairment;
8 (3)Alldebts,obligations,andotherliabilitiesofthedomesticatingentity
9continueasdebts,obligations,andotherliabilitiesofthedomesticatedentity;
10 (4)Exceptasotherwiseprovidedbylawortheplanofdomestication,allthe
11rights,privileges,immunities,powers,andpurposesofthedomesticatingentityremain
12inthedomesticatedentity;
13 (5)Thenameofthedomesticatedentitymaybesubstitutedforthenameofthe
14domesticatingentityinanypendingactionorproceeding;
15 (6)Thecertificateoforganizationofthedomesticatedentitybecomeseffective;
16 (7)Theprovisionsoftheoperatingagreementofthedomesticatedentitythatare
17tobeinarecord,ifany,approvedaspartoftheplanofdomesticationbecomeeffective;
18and
19 (8)Theinterestsinthedomesticatingentityareconvertedtotheextentandas
20approvedinconnectionwiththedomestication,andthemembersofthedomesticating
HCSSSSCSSBs3&69 81 21entityareentitledonlytotherightsprovidedtothemundertheplanofdomestication
22andtoanyappraisalrightstheyhaveundersection347.1174.
23 2.Exceptasotherwiseprovidedintheorganiclaworoperatingagreementofthe
24domesticatinglimitedliabilitycompany,thedomesticationdoesnotgiverisetoany
25rightsthatamember,manager,orthirdpartywouldotherwisehaveuponadissolution,
26liquidation,orwindingupofthedomesticatingcompany.
27 3.Whenadomesticationbecomeseffective,apersonthatdidnothaveinterest
28holderliabilitywithrespecttothedomesticatinglimitedliabilitycompanyandbecomes
29subjecttointerestholderliabilitywithrespecttoadomesticcompanyasaresultofthe
30domesticationhasinterestholderliabilityonlytotheextentprovidedbysections
31347.1000to347.1228andonlyforthosedebts,obligations,andotherliabilitiesthatare
32incurredafterthedomesticationbecomeseffective.
33 4.Whenadomesticationbecomeseffective,theinterestholderliabilityofa
34personthatceasestoholdaninterestinadomesticdomesticatinglimitedliability
35companywithrespecttowhichthepersonhadinterestholderliabilityissubjecttothe
36followingrules:
37 (1)Thedomesticationdoesnotdischargeanyinterestholderliabilityunder
38sections347.1000to347.1228totheextenttheinterestholderliabilitywasincurred
39beforethedomesticationbecameeffective;
40 (2)Apersondoesnothaveinterestholderliabilityundersections347.1000to
41347.1228foranydebt,obligation,orotherliabilitythatisincurredafterthe
42domesticationbecomeseffective;
43 (3)Sections347.1000to347.1228continuetoapplytotherelease,collection,or
44dischargeofanyinterestholderliabilitypreservedundersubdivision(1)ofthis
45subsectionasifthedomesticationhadnotoccurred;
46 (4)Apersonhasallrightsofcontributionfromanyotherpersonasareprovided
47bysections347.1000to347.1228,lawotherthansections347.1000to347.1228,orthe
48operatingagreementofthedomesticdomesticatinglimitedliabilitycompanywith
49respecttoanyinterestholderliabilitypreservedundersubdivision(1)ofthissubsection
50asifthedomesticationhadnotoccurred.
51 5.Whenadomesticationbecomeseffective,aforeignlimitedliabilitycompany
52thatisthedomesticatedcompanymaybeservedwithprocessinthisstateforthe
53collectionandenforcementofanyofitsdebts,obligations,andotherliabilitiesas
54providedinsection347.1036.
55 6.Ifthedomesticatinglimitedliabilitycompanyisaregisteredforeignentity,the
56registrationofthecompanyiscancelledwhenthedomesticationbecomeseffective.
HCSSSSCSSBs3&69 82 57 7.Adomesticationdoesnotrequireadomesticdomesticatinglimitedliability
58companytowindupitsaffairsanddoesnotconstituteorcausethedissolutionofthe
59company.
347.1224.Inapplyingandconstruingthisuniformact,considerationshallbe
2giventotheneedtopromoteuniformityofthelawwithrespecttoitssubjectmatter
3amongstatesthatenactit.
347.1226.Sections347.1000to347.1228modify,limit,andsupersedethe
2ElectronicSignaturesinGlobalandNationalCommerceAct,15U.S.C.Section7001et
3seq.,butdonotmodify,limit,orsupersedeSection101(c)ofthatact,15U.S.C.Section
47001(c),orauthorizeelectronicdeliveryofanyofthenoticesdescribedinSection103(b)
5ofthatact,15U.S.C.Section7003(b).
347.1228.Sections347.1000to347.1228donotaffectanactioncommenced,
2proceedingbrought,orrightaccruedbeforeAugust28,2023.
356.071.Thenameofaprofessionalcorporationorofaforeignprofessional
2corporationauthorizedtotransactbusinessinthisstateshall:
3 (1)Containthewords"ProfessionalCorporation"ortheabbreviation"P.C."andthe
4corporationshallidentifyitselfwithsuchdesignationinthecourseofrenderingany
5professionalservice;
6 (2)Notcontainanywordorphrasethatindicatesorimpliesthatitisorganizedfor
7anypurposeotherthanthepurposescontainedinitsarticlesofincorporation;
8 (3)Bedistinguishablefrom(astheprecedingstandardsmaybedefinedatthetimeof
9incorporationorqualificationinorunderthegeneralandbusinesscorporationlawof
10Missouri,chapter351)thenameofanydomesticcorporationexistingunderthelawsofthis
11stateoranyforeigncorporationauthorizedtotransactbusinessinthisstate,oranamethe
12exclusiverighttowhichis,atsuchtime,reservedinthemannerprovidedinthegeneraland
13businesscorporationlawofMissouri,chapter351,thenot-for-profitcorporationlaw,chapter
14355,theuniformlimitedpartnershiplaw,chapter359,theuniformpartnershiplawrelatingto
15registeredlimitedliabilitypartnershipsandlimitedliabilitylimitedpartnerships,chapter358,
16ortheuniformlimitedliabilitycompanyact,chapter347,orthenameofanentitythathasin
17effectaregistrationofitscorporatenameundereitherchapter347,351,355,358,or359,or
18anyotherbusinessentityorganized,reserved,orregisteredunderthelawsofthisstate;except
19that,thisprovisionshallnotapplyif:
20 (a)Suchsimilarityresultsfromtheuseinthecorporatenameoftheprofessional
21corporationorforeignprofessionalcorporationpersonalnamesofitsshareholdersorformer
22shareholders;or
23 (b)Theapplicantfileswiththesecretaryofstateeitherofthefollowing:
HCSSSSCSSBs3&69 83 24 a.Ifthenameisthesame,achangewherebyawordisaddedtomakesuchname
25distinguishablefromthenameofsuchothercorporation,limitedpartnershiporlimited
26liabilitycompany;or
27 b.Acertifiedcopyofafinaldecreeofacourtofcompetentjurisdictionestablishing
28thepriorrightoftheapplicanttotheuseofsuchnameinthisstate;and
29 (4)Otherwiseconformtoanyrulepromulgatedbyanylicensingauthorityhaving
30jurisdictionoveraprofessionalservicedescribedinthearticlesofincorporationofsuch
31corporation.
407.205.1.Itshallbeunlawfulforanybusinessthatmakesanautomatic
2renewalofferorcontinuousserviceoffertoaconsumerinthisstateto:
3 (1)Failtopresenttheautomaticrenewaloffertermsorcontinuousserviceoffer
4termsinaclearandconspicuousmannerbeforethesubscriptionorpurchasing
5agreementisfulfilledandinvisualproximity,ortemporalproximityiftheofferis
6conveyedbyvoice,totherequestforconsenttotheoffer.Iftheofferalsoincludesagift
7orfreetrial,theoffershallincludeaclearandconspicuousexplanationofthepricethat
8shallbechargedafterthetrialendsorthemannerinwhichthesubscriptionor
9purchasingagreementpricingshallchangeuponconclusionofthetrial;
10 (2)Chargeaconsumer'screditcard,debitcard,oraccountwithathirdparty
11foranautomaticrenewalorcontinuousservicewithoutfirstobtainingtheconsumer's
12affirmativeconsenttotheagreementcontainingtheautomaticrenewaloffertermsor
13continuousserviceofferterms,includingthetermsofanautomaticrenewalofferor
14continuousserviceofferthatismadeatapromotionalordiscountedpriceforalimited
15periodoftime;or
16 (3)Failtoprovideanacknowledgmentthatincludestheautomaticrenewaloffer
17termsorcontinuousserviceofferterms,cancellationpolicy,andinformationregarding
18howtocancelinamannerthattheconsumerisabletoretain.Iftheautomaticrenewal
19offerorcontinuousserviceofferincludesagiftorfreetrial,thebusinessshallalso
20discloseintheacknowledgmenthowtocancel,andallowtheconsumertocancel,the
21automaticrenewalorcontinuousservicebeforetheconsumerpaysforthegoodsor
22services.
23 2.Abusinessthatmakesanautomaticrenewalofferorcontinuousserviceoffer
24shallprovideatleastoneofthefollowing:
25 (1)Atoll-freetelephonenumber;
26 (2)Anemailaddress;
27 (3)Apostaladdressifthesellerdirectlybillstheconsumer;or
28 (4)Othercost-effective,timely,andeasy-to-usemechanismforcancellation.
29
HCSSSSCSSBs3&69 84 30Thebusinessshallclearlyandconspicuouslydisplaysuchcontactmechanisminthe
31acknowledgment,subscription,andpurchasingagreementdescribedunderthissection.
32 3.Aconsumerwhoacceptsanautomaticrenewalorcontinuousserviceoffer
33shallbeallowedtoterminatetheautomaticrenewalorcontinuousservicethroughany
34ofthecancellationmechanismsdescribedundersubsection2ofthissection,whichmay
35includeaterminationemailformattedandprovidedbythebusinessthataconsumer
36maysendtothebusinesswithoutadditionalinformation.
37 4.Inthecaseofamaterialchangeinthetermsoftheautomaticrenewalor
38continuousserviceacceptedbyaconsumerinthisstate,thebusinessshallprovidethe
39consumerwithaclearandconspicuouswrittennoticeofthematerialchangeandshall
40provideinformationregardinghowtocancelinamannerthattheconsumerisableto
41retain.
42 5.Therequirementsofthissectionshallapplyonlypriortothecompletionofthe
43initialorderfortheautomaticrenewalorcontinuousservice,except:
44 (1)Therequirementinsubdivision(3)ofsubsection1ofthissectionmaybe
45fulfilledaftercompletionoftheinitialorder;and
46 (2)Therequirementinsubsection4ofthissectionshallbefulfilledpriorto
47implementationofthematerialchange.
48 6.Theattorneygeneralshallhaveallpowers,rights,anddutiesregarding
49violationsofthissectionasareprovidedinsections407.010to407.130,inadditionto
50rulemakingauthorityundersection407.145.
407.2110.Anyleasedtechnologyproductincluding,butnotlimitedto,a
2computer,modem,router,orcellphonemaybereturnedtothephysicallocationa
3personfirstacquiredtheproduct.Thepersonshallnotberequiredtoreturntheleased
4technologyproductbyshippingtheproductbacktotheentitythatownstheproductif
5thereisaphysicallocationtoreturntheproduct.
431.202.1.Areasonablecovenantinwritingpromisingnottosolicit,recruit,hireor
2otherwiseinterferewiththeemploymentofoneormoreemployeesshallbeenforceableand
3notarestraintoftradepursuanttosubsection1ofsection416.031if:
4 (1)Betweentwoormorecorporationsorotherbusinessentitiesseekingtopreserve
5workforcestability(whichshallbedeemedtobeamongtheprotectableinterestsofeach
6corporationorbusinessentity)during,andforareasonableperiodfollowing,negotiations
7betweensuchcorporationsorentitiesfortheacquisitionofallorapartofoneormoreofsuch
8corporationsorentities;
9 (2)Betweentwoormorecorporationsorbusinessentitiesengagedinajointventure
10orotherlegallypermissiblebusinessarrangementwheresuchcovenantseekstoprotect
HCSSSSCSSBs3&69 85 11againstpossiblemisuseofconfidentialortradesecretbusinessinformationsharedortobe
12sharedbetweenoramongsuchcorporationsorentities;
13 (3)Betweenanemployerandoneormoreemployeesseekingonthepartofthe
14employertoprotect:
15 (a)Confidentialortradesecretbusinessinformation;or
16 (b)Customerorsupplierrelationships,goodwillorloyalty,whichshallbedeemedto
17beamongtheprotectableinterestsoftheemployer;or
18 (4)Betweenanemployerandoneormoreemployees,notwithstandingtheabsenceof
19theprotectableinterestsdescribedinsubdivision(3)ofthissubsection,solongassuch
20covenantdoesnotcontinueformorethanoneyearfollowingtheemployee'semployment;
21provided,however,thatthissubdivisionshallnotapplytocovenantssignedbyemployees
22whoprovideonlysecretarialorclericalservices.
23 2.Whetheracovenantcoveredbythissectionisreasonableshallbedetermined
24baseduponthefactsandcircumstancespertainingtosuchcovenant,butacovenantcovered
25exclusivelybysubdivision(3)or(4)ofsubsection1ofthissectionshallbeconclusively
26presumedtobereasonableifitspostemploymentdurationisnomorethanoneyear.
27 3.Nothinginsubdivision(3)or(4)ofsubsection1ofthissectionisintendedto
28create,ortoaffectthevalidityorenforceabilityof,employer-employeecovenantsnotto
29compete.
30 4.Nothinginthissectionshallprecludeacovenantdescribedinsubsection1ofthis
31sectionfrombeingenforceableincircumstancesotherthanthosedescribedinsubdivisions
32(1)to(4)ofsubsection1ofthissection,wheresuchcovenantisreasonablynecessaryto
33protectaparty'slegallypermissiblebusinessinterests.
34 5.Nothingisthissectionshallbeconstruedtolimitanemployee'sabilitytoseekor
35acceptemploymentwithanotheremployerimmediatelyupon,oratanytimesubsequentto,
36terminationofemployment,whethersaidterminationwasvoluntaryornonvoluntary.
37 6.(1)Forpurposesofthissubsection,theterms"facility"and"healthcare
38professional"shallhavethesamemeaninggiventothetermsinsection376.1350.
39 (2)Nofacilityinthisstateshallrequireanyhealthcareprofessionalina
40nonresearchroletosignacovenantdescribedinsubsection1ofthissectionorany
41covenantnottocompeteasaconditionofemployment.Anysuchcovenantinan
42employmentcontractinviolationofthissubsectionshallbevoidandunenforceable.
43 7.Thissectionshallhaveretrospectiveaswellasprospectiveeffect.
536.050.1.Thepowerofthecourtsofthisstatetorenderdeclaratoryjudgments
2shallextendtodeclaratoryjudgmentsrespectingthevalidityofrules,orofthreatened
3applicationsthereof,andsuchsuitsmaybemaintainedagainstagencieswhetherornotthe
4plaintiffhasfirstrequestedtheagencytopassuponthequestionpresented.Thevenueof
HCSSSSCSSBs3&69 86 5suchsuitsagainstagenciesshall,attheoptionoftheplaintiff,beinthecircuitcourtofCole
6County,orinthecountyoftheplaintiff'sresidence,oriftheplaintiffisacorporation,
7domesticorforeign,havingaregisteredofficeorbusinessofficeinthisstate,inthecountyof
8suchregisteredofficeorbusinessoffice.Nothinghereincontainedshallbeconstruedasa
9limitationonthedeclaratoryorotherreliefwhichthecourtsmightgrantintheabsenceofthis
10section.
11 2.Anypersonbringinganactionundersubsection1ofthissectionshallnotbe
12requiredtoexhaustanyadministrativeremedyifthecourtdeterminesthat:
13 (1)Theadministrativeagencyhasnoauthoritytograntthereliefsoughtorthe
14administrativeremedyisotherwiseinadequate;or
15 (2)Theonlyissuepresentedforadjudicationisaconstitutionalissueorother
16questionoflaw;or
17 (3)Requiringthepersontoexhaustanyadministrativeremedywouldresultinundue
18prejudicebecausethepersonmaysufferirreparableharmifunabletosecureimmediate
19judicialconsiderationoftheclaim.Provided,however,thattheprovisionsofthissubsection
20shallnotapplytoanymattercoveredbychapters288,302,and303;or
21 (4)Thepartybringingtheactionisasmallbusinessclaimingamaterialviolationof
22section536.300[or536.303] bythestateagencyrequiringthesmallbusinessimpact
23statementfortheamendmentorrule.
24 3.Anonstatepartywhoprevailsinanactionbroughtpursuanttosubsection1ofthis
25sectionshallbeawardedreasonablefeesandexpenses,asdefinedinsection536.085,
26incurredbythatpartyintheaction.
27 4.Anonstatepartyseekinganawardoffeesandotherexpensesshall,withinthirty
28daysofafinaldispositionofanactionbroughtpursuanttosubsection1ofthissection,submit
29tothecourtwhichrenderedthefinaldispositionorjudgmentanapplicationwhichshowsthat
30thepartyisaprevailingpartyandiseligibletoreceiveanawardpursuanttothissection,and
31theamountsought,includinganitemizedstatementfromanyattorneyorexpertwitness
32representingorappearinginbehalfofthepartystatingtheactualtimeexpendedandtherate
33atwhichfeesandotherexpensesarecomputed.
34 5.Aprevailingnonstatepartyinanagencyproceedingshallsubmitanapplicationfor
35feesandexpensestothecourtbeforewhichthepartyprevailed.Thefilingofanapplication
36shallnotstaythetimeforappealingthemeritsofacase.Whenthestateappealsthe
37underlyingmeritsofanadversaryproceeding,nodecisionontheapplicationforfeesand
38otherexpensesinconnectionwiththatadversaryproceedingshallbemadepursuanttothis
39sectionuntilafinalandunreviewabledecisionisrenderedbythecourtontheappealoruntil
40theunderlyingmeritsofthecasehavebeenfinallydeterminedpursuanttotheappeal.
HCSSSSCSSBs3&69 87 41 6.Thecourtmayeitherreducetheamounttobeawardedordenyanyaward,tothe
42extentthattheprevailingnonstatepartyduringthecourseoftheproceedingsengagedin
43conductwhichundulyandunreasonablyprotractedthefinalresolutionofthematterin
44controversy.
45 7.Thedecisionofacourtontheapplicationforreasonablefeesandexpensesshallbe
46inwriting,separatefromthejudgmentororderofthecourtwhichdeterminedtheprevailing
47party,andshallincludewrittenfindingsandconclusionsandthereasonorbasistherefor.The
48decisionofacourtontheapplicationforfeesandotherexpensesshallbefinal,subject
49respectivelytoappealorjudicialreview.
50 8.Ifapartyorthestateisdissatisfiedwithadeterminationoffeesandotherexpenses
51madeinanactionbroughtpursuanttosubsection1ofthissection,thatpartyorthestatemay,
52withinthetimepermittedbylaw,appealthatorderorjudgmenttotheappellatecourthaving
53jurisdictiontoreviewthemeritsofthatorderorjudgment.Theappellatecourt's
54determinationshallbebasedsolelyontherecordmadebeforethecourtbelow.Thecourt
55maymodify,reverseorreverseandremandthedeterminationoffeesandotherexpensesifthe
56courtfindsthattheawardorfailuretomakeanawardoffeesandotherexpenses,orthe
57calculationoftheamountoftheaward,wasarbitraryandcapricious,wasunreasonable,was
58unsupportedbycompetentandsubstantialevidence,orwasmadecontrarytolaworinexcess
59ofthecourt'sjurisdiction.Awardsmadepursuanttothissectionshallbepayablefrom
60amountsappropriatedtherefor.Thestateagencyagainstwhichtheawardwasmadeshall
61requestanappropriationtopayfortheaward.
62 9.Thegeneralassemblyoritsdesigneeshallhavestanding,inlaworequity,to
63interveneinanyexistingactioninvolvingsuchchallengetoagencyaction.Unlessotherwise
64providedbyresolution,thegeneralassembly'sdesigneeisthejointcommitteeon
65administrativeruleswhomay,uponaconcurrenceofamajorityofthecommittee's
66members,interveneinthenameofthemembersofthecommitteeintheirrepresentative
67capacity.Nothinginthissectionshallconferuponthecommitteeanydutytosoactor
68intervene.
536.300.1.Priortosubmittingproposedrulesforadoption,amendment,revision,or
2repeal,underthischapterthestateagencyshalldeterminewhethertheproposedrulemaking
3affectssmallbusinessesand,ifso,theavailabilityandpracticabilityofless-restrictive
4alternativesthatcouldbeimplementedtoachievethesameresultsoftheproposed
5rulemaking.Thisrequirementshallnotapplytoemergencyrulemakingpursuanttosection
6536.025ortoconstitutionallyauthorizedrulemakingpursuanttoArticleIV,Section45ofthe
7MissouriConstitution.Thisrequirementshallbeinadditiontothefiscalnoterequirementof
8sections536.200to536.210.
HCSSSSCSSBs3&69 88 9 2.Iftheproposedrulesaffectsmallbusinesses,thestateagencyshallconsider
10creative,innovative,orflexiblemethodsofcomplianceforsmallbusinessandprepareasmall
11businessimpactstatementtobesubmittedtothesecretaryofstateandthejointcommitteeon
12administrativeruleswiththeproposedrules.[Acopyoftheproposedrulesandthesmall
13businessimpactstatementshallalsobefiledwiththeboardonthesamedateastheyarefiled
14withthesecretaryofstate.] Suchbusinessimpactstatementandproposedrulesshallbe
15submittedtotheboardpriortoprovidingnoticeforapublichearing.Thestatementshall
16provideareasonabledeterminationofthefollowing:
17 (1)Themethodstheagencyconsideredorusedtoreducetheimpactonsmall
18businessessuchasconsolidation,simplification,differingcompliance,orreporting
19requirements,lessstringentdeadlines,performanceratherthandesignstandards,
20exemption,oranyothermitigatingtechniques;
21 (2)Howtheagencyinvolvedsmallbusinessesinthedevelopmentoftheproposed
22rules;
23 (3)Theprobablemonetarycostsandbenefitstotheimplementingagencyandother
24agenciesdirectlyaffected,includingtheestimatedtotalamounttheagencyexpectstocollect
25fromanyadditionallyimposedfeesandthemannerinwhichthemoneyswillbeused,ifsuch
26costsarecapableofdetermination;
27 (4)Adescriptionofthesmallbusinessesthatwillberequiredtocomplywiththe
28proposedrulesandhowtheymaybeadverselyaffected,exceptincaseswherethestate
29agencyhasfiledafiscalnotethatcomplieswithalloftheprovisionsofsection536.205;
30 (5)Indollaramounts,theincreaseinthelevelofdirectcosts,suchasfeesor
31administrativepenalties,andindirectcosts,suchasreporting,recordkeeping,equipment,
32construction,labor,professionalservices,revenueloss,orothercostsassociatedwith
33complianceifsuchcostsarecapableofdetermination,exceptincaseswherethestateagency
34hasfiledafiscalnotethatcomplieswithalloftheprovisionsofsection536.205;
35 (6)Thebusinessthatwillbedirectlyaffectedby,bearthecostof,ordirectlybenefit
36fromtheproposedrules;
37 (7)Whethertheproposedrulesincludeprovisionsthataremorestringentthanthose
38mandatedbyanycomparableorrelatedfederal,state,orcountystandards,withan
39explanationofthereasonforimposingthemore-stringentstandard.
40 3.Anyproposedrulethatisrequiredtohaveasmallbusinessimpactstatementbut
41doesnotincludesuchastatementshallbeinvalidandthesecretaryofstateshouldnotpublish
42theruleuntilsuchtimeasthestatementisprovided.Ifthestateagencydeterminesthatits
43proposedruledoesnotaffectsmallbusiness,thestateagencyshallsocertifythisfindingin
44thetransmittallettertothesecretaryofstate,statingthatithasdeterminedthatsuchproposed
HCSSSSCSSBs3&69 89 45rulewillnothaveaneconomicimpactonsmallbusinessesandthesecretaryofstateshall
46publishtherule.
47 4.[Sections536.300to536.310] Thissectionandsection536.020shallnotapply
48wheretheproposedruleisbeingpromulgatedonanemergencybasis,wheretheruleis
49federallymandated,orwheretherulesubstantiallycodifiesexistingfederalorstatelaw.
50Notwithstandingtheprovisionsofthissection,federallymandatedregulationsaresubjectto
51thefederalRegulatoryFlexibilityActasamendedbytheSmallBusinessRegulatoryand
52EnforcementFairnessActof1996,P.L.96-354,asamendedbyP.L.104.121.Anyfederally
53mandatedregulationsthatdonotcomplywiththeseactsshallbesubjecttothissection.
620.3800.Thereisherebycreatedwithinthedepartmentofeconomic
2developmentthe"OfficeofEntrepreneurship".Theofficeshallemployanindividual
3topromotepoliciesandinitiativestosupportthegrowthofentrepreneurshipof
4Missouri-basedbusinesseswithlessthantenemployees,includingentrepreneurship
5withinracialminoritygroups,assuchtermisdefinedinsection37.013,andwomenand
6veteranentrepreneurship,inthestate.TheofficeshallworkwithMissouristakeholders
7andcommunities,includingminoritycommunities,toprovideinformationandtechnical
8supporttoentrepreneurs.Theofficeshallsupportandadvisetheofficeof
9administrationwithpreparingthereportpursuanttosubsection3ofsection34.195.
620.3900.1.Sections620.3900to620.3930shallbeknownandmaybecitedas
2the"RegulatorySandboxAct".
3 2.Forthepurposesofsections620.3900to620.3930,thefollowingtermsshall
4mean:
5 (1)"Advisorycommittee",thegeneralregulatorysandboxprogramadvisory
6committeecreatedinsection620.3910;
7 (2)"Applicableagency",adepartmentoragencyofthestatethatbylaw
8regulatesabusinessactivityandpersonsengagedinsuchbusinessactivity,includingthe
9issuanceoflicensesorothertypesofauthorization,andwhichtheregulatoryreliefoffice
10determineswouldotherwiseregulateasandboxparticipant.Aparticipantmayfall
11undermultipleapplicableagenciesifmultipleagenciesregulatethebusinessactivity
12thatissubjecttothesandboxprogramapplication."Applicableagency"shallnot
13includethedivisionofprofessionalregistrationanditsboards,commissions,
14committees,andoffices;
15 (3)"Applicant"or"sandboxapplicant",apersonorbusinessthatappliesto
16participateinthesandboxprogram;
17 (4)"Consumer",apersonwhopurchasesorotherwiseentersintoatransaction
18oragreementtoreceiveaproductorserviceofferedthroughthesandboxprogram
19pursuanttoademonstrationbyaprogramparticipant;
HCSSSSCSSBs3&69 90 20 (5)"Demonstrate"or"demonstration",totemporarilyprovideanofferingofan
21innovativeproductorserviceinaccordancewiththeprovisionsofthesandbox
22program;
23 (6)"Department",thedepartmentofeconomicdevelopment;
24 (7)"Innovation",theuseorincorporationofanewidea,aneworemerging
25technology,oranewuseofexistingtechnologytoaddressaproblem,provideabenefit,
26orotherwiseofferaproduct,productionmethod,orservice;
27 (8)"Innovativeoffering",anofferingofaproductorservicethatincludesan
28innovation;
29 (9)"Product",acommerciallydistributedgoodthatis:
30 (a)Tangiblepersonalproperty;and
31 (b)Theresultofaproductionprocess;
32 (10)"Production",themethodorprocessofcreatingorobtainingagood,which
33mayincludeassembling,breeding,capturing,collecting,extracting,fabricating,
34farming,fishing,gathering,growing,harvesting,hunting,manufacturing,mining,
35processing,raising,ortrappingagood;
36 (11)"Regulatoryreliefoffice",theofficeresponsibleforadministeringthe
37sandboxprogramwithinthedepartment;
38 (12)"Sandboxparticipant"or"participant",apersonorbusinesswhose
39applicationtoparticipateinthesandboxprogramisapprovedinaccordancewiththe
40provisionsofsection620.3915;
41 (13)"Sandboxprogram",thegeneralregulatorysandboxprogramcreatedin
42sections620.3900to620.3930thatallowsapersontotemporarilydemonstratean
43innovativeofferingofaproductorserviceunderawaiverorsuspensionofoneormore
44statelawsorregulations;
45 (14)"Sandboxprogramdirector",thedirectoroftheregulatoryreliefoffice;
46 (15)"Service",anycommercialactivity,duty,orlaborperformedforanother
47personorbusiness."Service"shallnotincludeaproductorservicewhenitsusewould
48impactrates,statutorilyauthorizedserviceareas,orsystemsafetyorreliabilityofan
49electricalcorporationorgascorporation,asdefinedinsection386.020,asdetermined
50bythepublicservicecommission,orofanyruralelectriccooperativeorganizedor
51operatingundertheprovisionsofchapter394,ortoanycorporationorganizedona
52nonprofitoracooperativebasisasdescribedinsubsection1ofsection394.200,ortoany
53electricalcorporationoperatingunderacooperativebusinessplanasdescribedin
54subsection2ofsection393.110,orofanymunicipallyownedutilityorganizedor
55operatingundertheprovisionsofchapter91,orofanyjointmunicipalutility
56commissionorganizedoroperatingundertheprovisionsofsections393.700to393.770.
HCSSSSCSSBs3&69 91 620.3905.1.Thereisherebycreatedwithinthedepartmentofeconomic
2developmentthe"RegulatoryReliefOffice",whichshallbeadministeredbythe
3sandboxprogramdirector.Thesandboxprogramdirectorshallreporttothedirector
4ofthedepartmentandmayappointstaff,subjecttotheapprovalofthedirectorofthe
5department.
6 2.Theregulatoryreliefofficeshall:
7 (1)Administerthesandboxprogrampursuanttosections620.3900to620.3930;
8 (2)Actasaliaisonbetweenprivatebusinessesandapplicableagenciesthat
9regulatesuchbusinessestoidentifystatelawsorregulationsthatcouldpotentiallybe
10waivedorsuspendedunderthesandboxprogram;
11 (3)Consultwitheachapplicableagency;and
12 (4)Establishaprogramtoenableapersontoobtainmonitoredaccesstothe
13marketinthestatealongwithlegalprotectionsforaproductorservicerelatedtothe
14lawsorregulationsthatarebeingwaivedasapartofparticipationinthesandbox
15program,inordertodemonstrateaninnovativeproductorservicewithoutobtaininga
16licenseorotherauthorizationthatmightotherwiseberequired.
17 3.Theregulatoryreliefofficeshall:
18 (1)Reviewstatelawsandregulationsthatmayunnecessarilyinhibitthecreation
19andsuccessofnewcompaniesorindustriesandproviderecommendationstothe
20governorandthegeneralassemblyonmodifyingorrepealingsuchstatelawsand
21regulations;
22 (2)Createaframeworkforanalyzingtherisklevelofthehealth,safety,and
23financialwell-beingofconsumersrelatedtopermanentlyremovingortemporarily
24waivinglawsandregulationsinhibitingthecreationorsuccessofnewandexisting
25companiesorindustries;
26 (3)Proposeandenterintoreciprocityagreementsbetweenstatesthatuseorare
27proposingtousesimilarregulatorysandboxprogramsasdescribedinsections620.3900
28to620.3930,providedthatsuchreciprocityagreementissupportedbyamajorityvoteof
29theadvisorycommitteeandtheregulatoryreliefofficeisdirectedbyanorderofthe
30governortopursuesuchreciprocityagreement;
31 (4)Enterintoagreementswithoradoptbestpracticesofcorrespondingfederal
32regulatoryagenciesorotherstatesthatareadministeringsimilarprograms;
33 (5)Consultwithbusinessesinthestateaboutexistingorpotentialproposalsfor
34thesandboxprogram;and
35 (6)Inaccordancewiththeprovisionsofchapter536andtheprovisionsof
36sections620.3900to620.3930,makerulesregardingtheadministrationofthesandbox
37program,includingmakingrulesregardingtheapplicationprocessandthereporting
HCSSSSCSSBs3&69 92 38requirementsofsandboxparticipants.Anyruleorportionofarule,asthattermis
39definedinsection536.010,thatiscreatedundertheauthoritydelegatedinthissection
40shallbecomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsof
41chapter536and,ifapplicable,section536.028.Thissectionandchapter536are
42nonseverableandifanyofthepowersvestedwiththegeneralassemblypursuantto
43chapter536toreview,todelaytheeffectivedate,ortodisapproveandannularuleare
44subsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandanyrule
45proposedoradoptedafterAugust28,2023,shallbeinvalidandvoid.
46 4.(1)Theregulatoryreliefofficeshallcreateandmaintainonthedepartment's
47websiteawebpagethatinvitesresidentsandbusinessesinthestatetomakesuggestions
48regardinglawsandregulationsthatcouldbemodifiedoreliminatedtoreducethe
49regulatoryburdenonresidentsandbusinessesinthestate.
50 (2)Onatleastaquarterlybasis,theregulatoryreliefofficeshallcompilethe
51relevantsuggestionsfromthewebpagecreatedpursuanttosubdivision(1)ofthis
52subsectionandprovideawrittenreporttothegovernorandthegeneralassembly.
53 (3)Increatingthereportdescribedinsubdivision(2)ofthissubsection,the
54regulatoryreliefoffice:
55 (a)Shallprovidetheidentityofresidentsandbusinessesthatmakesuggestions
56onthewebpageifthoseresidentsandbusinesseswishtocommentpublicly,andshall
57ensurethattheprivateinformationofresidentsandbusinessesthatmakesuggestionson
58thewebpageisnotmadepubliciftheydonotwishtocommentpublicly;and
59 (b)Mayevaluatethesuggestionsandprovideanalysisandsuggestionsregarding
60whichstatelawsandregulationscouldbemodifiedoreliminatedtoreducethe
61regulatoryburdenonresidentsandbusinessesinthestatewhilestillprotecting
62consumers.
63 5.(1)ByOctoberfirstofeachyear,thedepartmentshallsubmitanannual
64reporttothegovernor,thegeneralassembly,andtoeachstateagencywhichshall
65include:
66 (a)Informationregardingeachparticipantinthesandboxprogram,including
67industriesrepresentedbyeachparticipantandtheanticipatedoractualcostsavings
68thateachparticipantexperienced;
69 (b)Theanticipatedoractualbenefittoconsumerscreatedbyeach
70demonstrationinthesandboxprogram;
71 (c)Recommendationsregardinganylawsorregulationsthatshouldbe
72permanentlymodifiedorrepealed;
73 (d)Informationregardinganyhealthandsafetyeventsrelatedtotheactivitiesof
74aparticipantinthesandboxprogram;and
HCSSSSCSSBs3&69 93 75 (e)Recommendationsforchangestothesandboxprogramorotherdutiesofthe
76regulatoryreliefoffice.
77 (2)Thedepartmentmayprovideaninterimreportfromthesandboxprogram
78directortothegovernorandgeneralassemblyonspecific,time-sensitiveissuesforthe
79functioningofthesandboxprogram,forthehealthandsafetyofconsumers,forthe
80successofparticipantsintheprogram,andforotherissuesofurgentneed.
620.3910.1.Thereisherebycreatedwithinthedepartmentofeconomic
2developmentthe"GeneralRegulatorySandboxProgramAdvisoryCommittee",tobe
3composedofthefollowingmembers:
4 (1)Thedirectorofthedepartmentofeconomicdevelopmentorhisorher
5designee;
6 (2)Thedirectorofthedepartmentofcommerceandinsuranceorhisorher
7designee;
8 (3)Theattorneygeneralorhisorherdesignee;
9 (4)Twomembersofthepublictobeappointedbythegovernor;
10 (5)Amemberofthepublicorofaninstitutionofhighereducation,tobe
11appointedbythegovernor;
12 (6)Amemberofaninstitutionofhighereducation,tobeappointedbythe
13directorofthedepartmentofhighereducationandworkforcedevelopment;
14 (7)Twomembersofthehouseofrepresentatives,onetobeappointedbythe
15speakerofthehouseofrepresentativesandonetobeappointedbytheminorityleader
16ofthehouseofrepresentatives;and
17 (8)Twomembersofthesenate,onetobeappointedbythepresidentpro
18temporeofthesenateandonetobeappointedbytheminorityleaderofthesenate;
19 2.(1)Advisorycommitteemembersshallbeappointedtoafour-yearterm.
20Memberswhoceaseholdingelectiveofficeshallbereplacedbythespeakerorminority
21leaderofthehouseofrepresentativesorthepresidentprotemporeorminorityfloor
22leaderofthesenate,asapplicable.Thesandboxprogramdirectormayestablishthe
23termsofinitialappointmentssothatapproximatelyhalfoftheadvisorycommitteeis
24appointedeverytwoyears.
25 (2)Thesandboxprogramdirectorshallselectachairoftheadvisorycommittee
26everytwoyearsinconsultationwiththemembersoftheadvisorycommittee.
27 (3)Noappointeeofthegovernor,speakerofthehouseofrepresentatives,or
28presidentprotemporeofthesenatemayservemorethantwoconsecutivecomplete
29terms.
30 3.Amajorityoftheadvisorycommitteeshallconstituteaquorumforthe
31purposeofconductingbusiness,andtheactionofamajorityofaquorumshall
HCSSSSCSSBs3&69 94 32constitutetheactionoftheadvisorycommittee,exceptasprovidedinsubsection4of
33thissection.
34 4.Theadvisorycommitteemay,atitsowndiscretion,meettooverrideadecision
35oftheregulatoryreliefofficeontheadmissionordenialofanapplicanttothesandbox
36program,providedsuchoverrideisdecidedwithatwo-thirdsmajorityvoteofthe
37membersoftheadvisorycommittee,andfurtherprovidedthatsuchvoteshallbetaken
38withinfifteenbusinessdaysoftheregulatoryreliefoffice'sdecision.
39 5.Theadvisorycommitteeshalladviseandmakerecommendationstothe
40regulatoryreliefofficeonwhethertoapproveapplicationstothesandboxprogram
41pursuanttosection620.3915.
42 6.Theregulatoryreliefofficeshallprovideadministrativestaffsupportforthe
43advisorycommittee.
44 7.Themembersoftheadvisorycommitteeshallservewithoutcompensation,
45butmaybereimbursedforanyactualandnecessaryexpensesincurredinthe
46performanceoftheadvisorycommittee'sofficialduties.
47 8.Meetingsoftheadvisorycommitteeshallbeconsideredpublicmeetingsfor
48thepurposesofchapter610.However,ameetingofthecommitteeshallbeaclosed
49meetingifthepurposeofthemeetingistodiscussanapplicationforparticipationinthe
50regulatorysandboxprogramandfailingtoholdaclosedmeetingwouldreveal
51informationthatconstitutesproprietaryorconfidentialtradesecrets.Uponapproval
52byamajorityvotebymembersoftheadvisorycommittee,theadvisorycommitteeshall
53beallowedtoconductremotemeetings,andindividualmembersshallbeallowedto
54attendmeetingsremotely.Theadvisorycommitteeshallprovidethepublictheabilityto
55viewanysuchremotemeetings.
620.3915.1.Anapplicantforthesandboxprogramshallprovidetothe
2regulatoryreliefofficeanapplicationinaformprescribedbytheregulatoryreliefoffice
3that:
4 (1)Confirmstheapplicantissubjecttothejurisdictionofthestate;
5 (2)Confirmstheapplicanthasestablishedphysicalresidenceoravirtual
6locationinthestatefromwhichthedemonstrationofaninnovativeofferingwillbe
7developedandperformed,andwhereallrequiredrecords,documents,anddatawillbe
8maintained;
9 (3)Containsrelevantpersonalandcontactinformationfortheapplicant,
10includinglegalnames,addresses,telephonenumbers,emailaddresses,website
11addresses,andotherinformationrequiredbytheregulatoryreliefoffice;
12 (4)Disclosescriminalconvictionsoftheapplicantorotherparticipating
13personnel,ifany;and
HCSSSSCSSBs3&69 95 14 (5)Containsadescriptionoftheinnovativeofferingtobedemonstrated,
15includingstatementsregarding:
16 (a)Howtheinnovativeofferingissubjecttolicensing,legalprohibition,orother
17authorizationrequirementsoutsideofthesandboxprogram;
18 (b)Eachlaworregulationthattheapplicantseekstohavewaivedorsuspended
19whileparticipatinginthesandboxprogram;
20 (c)Howtheinnovativeofferingwouldbenefitconsumers;
21 (d)Howtheinnovativeofferingisdifferentfromotherinnovativeofferings
22availableinthestate;
23 (e)Therisksthatmightexistforconsumerswhouseorpurchasetheinnovative
24offering;
25 (f)Howparticipatinginthesandboxprogramwouldenableasuccessful
26demonstrationoftheinnovativeofferingofaninnovativeproductorservice;
27 (g)Adescriptionoftheproposeddemonstrationplan,includingestimatedtime
28periodsforbeginningandendingthedemonstration;
29 (h)Recognitionthattheapplicantwillbesubjecttoalllawsandregulations
30pertainingtotheapplicant'sinnovativeofferingaftertheconclusionofthe
31demonstration;
32 (i)Howtheapplicantwillendthedemonstrationandprotectconsumersifthe
33demonstrationfails;
34 (j)Alistofeachapplicableagency,ifany,thattheapplicantknowsregulatesthe
35applicant'sbusiness;and
36 (k)Anyotherrequiredinformationasdeterminedbytheregulatoryreliefoffice.
37 2.Anapplicantshallremittotheregulatoryreliefofficeanapplicationfeeof
38threehundreddollarsperapplicationforeachinnovativeoffering.Suchapplication
39feesshallbeusedbytheregulatoryreliefofficesolelyforthepurposeofimplementing
40theprovisionsofsections620.3900to620.3930.
41 3.Anapplicantshallfileaseparateapplicationforeachinnovativeofferingthat
42theapplicantwishestodemonstrate.
43 4.Anapplicantforthesandboxprogrammaycontacttheregulatoryreliefoffice
44torequestaconsultationregardingthesandboxprogrambeforesubmittingan
45application.Theregulatoryreliefofficemayprovideassistancetoanapplicantin
46preparinganapplicationforsubmission.
47 5.(1)Afteranapplicationisfiled,theregulatoryreliefofficeshall:
48 (a)Consultwitheachapplicableagencythatregulatestheapplicant'sbusiness
49regardingwhethermoreinformationisneededfromtheapplicant;and
HCSSSSCSSBs3&69 96 50 (b)Seekadditionalinformationfromtheapplicantthattheregulatoryrelief
51officedeterminesisnecessary.
52 (2)Nolaterthanfifteenbusinessdaysafterthedayonwhichacompleted
53applicationisreceivedbytheregulatoryreliefoffice,theregulatoryreliefofficeshall:
54 (a)Reviewtheapplicationandrefertheapplicationtoeachapplicableagency
55thatregulatestheapplicant'sbusiness;and
56 (b)Providetotheapplicant:
57 a.Anacknowledgmentofreceiptoftheapplication;and
58 b.Theidentityandcontactinformationofeachapplicableagencytowhichthe
59applicationhasbeenreferredforreview.
60 (3)Nolaterthansixtydaysafterthedayonwhichanapplicableagencyreceives
61acompletedapplicationforreview,theapplicableagencyshallprovideawrittenreport
62tothesandboxprogramdirectorwiththeapplicableagency'sfindings.Suchreport
63shall:
64 (a)Describeanyidentifiable,likely,andsignificantharmtothehealth,safety,or
65financialwell-beingofconsumersthattherelevantlaworregulationprotectsagainst;
66and
67 (b)Makearecommendationtotheregulatoryreliefofficethattheapplicant
68eitherbeadmittedordeniedentranceintothesandboxprogram.
69 (4)Anapplicableagencymayrequestanadditionaltenbusinessdaystodeliver
70thewrittenreportrequiredbysubdivision(3)ofthissubsectionbyprovidingnoticeto
71thesandboxprogramdirector,whichrequestshallautomaticallybegranted.An
72applicableagencymayrequestonlyoneextensionperapplication.Thesandbox
73programdirectormayalsoprovideanadditionalextensiontotheapplicableagencyfor
74cause.
75 (5)Ifanapplicableagencyrecommendsanapplicantunderthissectionbe
76deniedentranceintothesandboxprogram,thewrittenreportrequiredbysubdivision
77(3)ofthissubsectionshallincludeadescriptionofthereasonsforsuchrecommendation,
78includingthereasonatemporarywaiverorsuspensionoftherelevantlawsor
79regulationswouldpotentiallysignificantlyharmthehealth,safety,orfinancialwell-
80beingofconsumersorthepublicandtheassessedlikelihoodofsuchharmoccurring.
81 (6)Ifanapplicableagencydeterminesthattheconsumer'sorpublic'shealth,
82safety,orfinancialwell-beingcanbeprotectedthroughlessrestrictivemeansthanthe
83existingrelevantlawsorregulations,theapplicableagencyshallprovidea
84recommendationofhowthatcanbeachieved.
85 (7)Ifanapplicableagencyfailstodeliverthewrittenreportrequiredby
86subdivision(3)ofthissubsection,thesandboxprogramdirectorshallprovideafinal
HCSSSSCSSBs3&69 97 87noticetotheapplicableagencyfordeliveryofthewrittenreport.Ifthereportisnot
88deliveredwithinfivedaysofsuchfinalnotice,thesandboxprogramdirectorshall
89assumethattheapplicableagencydoesnotobjecttothetemporarywaiveror
90suspensionoftherelevantlawsorregulationsforanapplicantseekingtoparticipatein
91thesandboxprogram.
92 6.(1)Notwithstandinganyprovisionofthissectiontothecontrary,an
93applicableagencymay,bywrittennoticetotheregulatoryreliefoffice:
94 (a)Rejectanapplication,providedsuchrejectionoccurswithinforty-fivedays
95afterthedayonwhichtheapplicableagencyreceivesacompleteapplicationforreview,
96orwithinfiftydaysifanextensionhasbeenrequestedbytheapplicableagency,ifthe
97applicableagencydetermines,intheapplicableagency'ssolediscretion,thatthe
98applicant'sofferingfailstocomplywithstandardsorspecifications:
99 a.Requiredbyfederalruleorregulation;or
100 b.Previouslyapprovedforusebyafederalagency;or
101 (b)Rejectanapplicationpreliminarilyapprovedbytheregulatoryreliefoffice,
102iftheapplicableagency:
103 a.Recommendsrejectionoftheapplicationintheapplicableagency'swritten
104reportsubmittedpursuanttosubdivision(3)ofsubsection5ofthissection;and
105 b.Providesinthewrittenreportsubmittedpursuanttosubdivision(3)of
106subsection5ofthissectionadescriptionoftheapplicableagency'sreasonsapprovalof
107theapplicationwouldcreateasubstantialriskofharmtothehealthorsafetyofthe
108public,orcreateunreasonableexpensesfortaxpayersinthestate.
109 (2)Ifanyapplicableagencyrejectsanapplicationonanonpreliminarybasis
110pursuanttosubdivision(1)ofthissubsection,theregulatoryreliefofficeshallnot
111approvetheapplication.
112 7.(1)Thesandboxprogramdirectorshallprovideallapplicationsand
113associatedwrittenreportstotheadvisorycommitteeuponreceivingawrittenreport
114fromanapplicableagency.
115 (2)Thesandboxprogramdirectormaycalltheadvisorycommitteetomeetas
116needed,butnotlessthanonceperquarterifapplicationsareavailableforreview.
117 (3)Afterreceivingandreviewingtheapplicationandeachassociatedwritten
118report,theadvisorycommitteeshallprovidetothesandboxprogramdirectorthe
119advisorycommittee'srecommendationastowhethertheapplicantshouldbeadmitted
120asasandboxparticipant.
121 (4)Aspartoftheadvisorycommittee'sreviewofeachreport,theadvisory
122committeeshallusecriteriausedbyapplicableagenciestoevaluateapplications.
HCSSSSCSSBs3&69 98 123 8.Theregulatoryreliefofficeshallconsultwitheachapplicableagencyandthe
124advisorycommitteebeforeadmittinganapplicantintothesandboxprogram.Such
125consultationmayincludeseekinginformationaboutwhether:
126 (1)Theapplicableagencyhaspreviouslyissuedalicenseorotherauthorization
127totheapplicant;and
128 (2)Theapplicableagencyhaspreviouslyinvestigated,sanctioned,orpursued
129legalactionagainsttheapplicant.
130 9.Inreviewinganapplicationunderthissection,theregulatoryreliefofficeand
131applicableagenciesshallconsiderwhether:
132 (1)Acompetitortotheapplicantisorhasbeenasandboxparticipantand,ifso,
133weighthatasafactorinfavorofallowingtheapplicanttoalsobecomeasandbox
134participant;
135 (2)Theapplicant'splanwilladequatelyprotectconsumersfrompotentialharm
136identifiedbyanapplicableagencyintheapplicableagency'swrittenreport;
137 (3)Theriskofharmtoconsumersisoutweighedbythepotentialbenefitsto
138consumersfromtheapplicant'sparticipationinthesandboxprogram;and
139 (4)Certainstatelawsorregulationsthatregulateaninnovativeofferingshould
140notbewaivedorsuspendedeveniftheapplicantisapprovedasasandboxparticipant,
141includingapplicableanti-fraudordisclosureprovisions.
142 10.Anapplicantshallbecomeasandboxparticipantiftheregulatoryrelief
143officeapprovestheapplicationforthesandboxprogramandentersintoawritten
144agreementwiththeapplicantdescribingthespecificlawsandregulationsthatare
145waivedorsuspendedaspartofparticipationinthesandboxprogram.Notwithstanding
146anyotherprovisionofthissectiontothecontrary,theregulatoryreliefofficeshallnot
147enterintoawrittenagreementwithanapplicantthatexemptstheapplicantfromany
148income,property,orsalestaxliabilityunlesssuchapplicantotherwisequalifiesforan
149exemptionfromsuchtax.
150 11.(1)Thesandboxprogramdirectormaydenyathisorhersolediscretionany
151applicationsubmittedunderthissectionforanyreason,includingifthesandbox
152programdirectordeterminesthatthepreponderanceofevidencedemonstratesthat
153suspendingorwaivingenforcementofalaworregulationwouldcausesignificantriskof
154harmtoconsumersorresidentsofthestate.
155 (2)Ifthesandboxprogramdirectordeniesanapplicationsubmittedunderthis
156section,theregulatoryreliefofficeshallprovidetotheapplicantawrittendescriptionof
157thereasonsfornotallowingtheapplicanttobecomeasandboxparticipant.
158 (3)Thedenialofanapplicationsubmittedunderthissectionshallnotbesubject
159tojudicialoradministrativereview.
HCSSSSCSSBs3&69 99 160 (4)Theacceptanceordenialofanapplicationsubmittedunderthissectionmay
161beoverriddenbyanaffirmativevoteofatwo-thirdsmajorityoftheadvisorycommittee
162atthediscretionoftheadvisorycommittee,providedsuchvoteshalltakeplacewithin
163fifteenbusinessdaysofthesandboxprogramdirector'sdecision.Notwithstandingany
164otherprovisionofthissectiontothecontrary,theadvisorycommitteeshallnotoverride
165arejectionmadebyanapplicableagency.
166 (5)Thesandboxprogramdirectorshalldenyanapplicationforparticipationin
167thesandboxprogramiftheapplicantoranypersonwhoseekstoparticipatewiththe
168applicantindemonstratinganinnovativeofferinghasbeenconvicted,enteredintoa
169pleaofnolocontendere,orenteredapleaofguiltyornolocontendereheldinabeyance,
170foranycrimeinvolvingsignificanttheft,fraud,ordishonestyifthecrimebearsa
171significantrelationshiptotheapplicant'sorotherparticipant'sabilitytosafelyand
172competentlyparticipateinthesandboxprogram.
173 12.Whenanapplicantisapprovedforparticipationinthesandboxprogram,
174thesandboxprogramdirectorshallprovidenoticeoftheapprovalonthedepartment's
175website.
176 13.Applicationstoparticipateinthesandboxprogramshallbeconsidered
177publicrecordsforthepurposesofchapter610,provided,however,thatanyinformation
178containedinsuchapplicationsthatconstitutesproprietaryorconfidentialtradesecrets
179shallnotbesubjecttodisclosurepursuanttochapter610.
620.3920.1.Iftheregulatoryreliefofficeapprovesanapplicationpursuantto
2section620.3915,thesandboxparticipantshallhavetwenty-fourmonthsaftertheday
3onwhichtheapplicationwasapprovedtodemonstratetheinnovativeofferingdescribed
4inthesandboxparticipant'sapplication.
5 2.Aninnovativeofferingthatisdemonstratedwithinthesandboxprogramshall
6onlybeavailabletoconsumerswhoareresidentsofMissouriorofanotherstate.Nolaw
7orregulationshallbewaivedorsuspendedifwaivingorsuspendingsuchlawor
8regulationwouldpreventaconsumerfromseekingrestitutionintheeventthatthe
9consumerisharmed.
10 3.Nothinginsections620.3900to620.3930shallrestrictasandboxparticipant
11thatholdsalicenseorotherauthorizationinanotherjurisdictionfromactinginthat
12jurisdictioninaccordancewithsuchlicenseorotherauthorization.
13 4.Asandboxparticipantshallbedeemedtopossessanappropriatelicenseor
14otherauthorizationunderthelawsofthisstateforthepurposesofanyprovisionof
15federallawrequiringlicensureorotherauthorizationbythestate.
HCSSSSCSSBs3&69 100 16 5.(1)Duringthedemonstrationperiod,asandboxparticipantshallnotbe
17subjecttotheenforcementofstatelawsorregulationsidentifiedinthewritten
18agreementbetweentheregulatoryreliefofficeandthesandboxparticipant.
19 (2)Aprosecutorshallnotfileorpursuechargespertainingtoanyactionrelated
20toalaworregulationidentifiedinthewrittenagreementbetweentheregulatoryrelief
21officeandthesandboxparticipantthatoccursduringthedemonstrationperiod.
22 (3)Astateagencyshallnotfileorpursueanypunitiveactionagainstasandbox
23participant,includingafineorlicensesuspensionorrevocation,fortheviolationofa
24laworregulationthatisidentifiedasbeingwaivedorsuspendedinthewritten
25agreementbetweentheregulatoryreliefofficeandthesandboxparticipantthatoccurs
26duringthedemonstrationperiod.
27 6.Notwithstandinganyprovisionofthissectiontothecontrary,asandbox
28participantshallnothaveimmunityrelatedtoanycriminaloffensecommittedduring
29thesandboxparticipant'sparticipationinthesandboxprogram.
30 7.Bywrittennotice,theregulatoryreliefofficemayendasandboxparticipant's
31participationinthesandboxprogramatanytimeandforanyreason,includingifthe
32sandboxprogramdirectordeterminesthatasandboxparticipantisnotoperatingin
33goodfaithtobringaninnovativeofferingtomarket;provided,however,thatthe
34sandboxprogramdirector'sdecisionmaybeoverriddenbyanaffirmativevoteofatwo-
35thirdsmajorityofthemembersoftheadvisorycommittee.
36 8.Theregulatoryreliefofficeandregulatoryreliefoffice'semployeesshallnot
37beliableforanybusinesslossesortherecoupingofapplicationexpensesorother
38expensesrelatedtothesandboxprogram,includingfor:
39 (1)Denyinganapplicant'sapplicationtoparticipateinthesandboxprogramfor
40anyreason;or
41 (2)Endingasandboxparticipant'sparticipationinthesandboxprogramatany
42timeandforanyreason.
620.3925.1.Beforedemonstratinganinnovativeofferingtoaconsumer,a
2sandboxparticipantshalldisclosethefollowinginformationtotheconsumer:
3 (1)Thenameandcontactinformationofthesandboxparticipant;
4 (2)Astatementthattheinnovativeofferingisauthorizedpursuanttothe
5sandboxprogramand,ifapplicable,thatthesandboxparticipantdoesnothavealicense
6orotherauthorizationtoprovideaninnovativeofferingunderstatelawsthatregulate
7offeringsoutsideofthesandboxprogram;
8 (3)Astatementthatspecificlawsandregulationshavebeenwaivedforthe
9sandboxparticipantforthedurationofitsdemonstrationinthesandboxprogram,with
10asummaryofsuchwaivedlawsandregulations;
HCSSSSCSSBs3&69 101 11 (4)Astatementthattheinnovativeofferingisundergoingtestingandmaynot
12functionasintendedandmayexposetheconsumertocertainrisksasidentifiedbythe
13applicableagency'swrittenreport;
14 (5)Astatementthattheprovideroftheinnovativeofferingisnotimmunefrom
15civilliabilityforanylossesordamagescausedbytheinnovativeoffering;
16 (6)Astatementthattheprovideroftheinnovativeofferingisnotimmunefrom
17criminalprosecutionforviolationsofstatelaworregulationsthatarenotsuspendedor
18waivedasallowedwithinthesandboxprogram;
19 (7)Astatementthattheinnovativeofferingisatemporarydemonstrationthat
20maybediscontinuedattheendofthedemonstrationperiod;
21 (8)Theexpectedenddateofthedemonstrationperiod;and
22 (9)Astatementthataconsumermaycontacttheregulatoryreliefofficeandfile
23acomplaintregardingtheinnovativeofferingbeingdemonstrated,providingthe
24regulatoryreliefoffice'stelephonenumber,emailaddress,andwebsiteaddresswherea
25complaintmaybefiled.
26 2.Thedisclosuresrequiredbysubsection1ofthissectionshallbeprovidedtoa
27consumerinaclearandconspicuousformand,foraninternet-orapplication-based
28innovativeoffering,aconsumershallacknowledgereceiptofthedisclosurebeforeany
29transactionmaybecompleted.
30 3.Theregulatoryreliefofficemayrequirethatasandboxparticipantmake
31additionaldisclosurestoaconsumer.
620.3930.1.Atleastforty-fivedaysbeforetheendofthetwenty-four-month
2demonstrationperiod,asandboxparticipantshall:
3 (1)Notifytheregulatoryreliefofficethatthesandboxparticipantwillexitthe
4sandboxprogramanddiscontinuethesandboxparticipant'sdemonstrationafterthe
5dayonwhichthetwenty-four-monthdemonstrationperiodends;or
6 (2)Seekanextensionpursuanttosubsection4ofthissection.
7 2.Iftheregulatoryreliefofficedoesnotreceivenotificationasrequiredby
8subsection1ofthissection,thedemonstrationperiodshallendattheendofthetwenty-
9four-monthdemonstrationperiod.
10 3.Ifademonstrationincludesaninnovativeofferingthatrequiresongoing
11servicesordutiesbeyondthetwenty-four-monthdemonstrationperiod,thesandbox
12participantmaycontinuetodemonstratetheinnovativeofferingbutshallbesubjectto
13enforcementofthelawsorregulationsthatwerewaivedorsuspendedaspartofthe
14sandboxprogram.
HCSSSSCSSBs3&69 102 15 4.(1)Nolaterthanforty-fivedaysbeforetheendofthetwenty-four-month
16demonstrationperiod,asandboxparticipantmayrequestanextensionofthe
17demonstrationperiod.
18 (2)Theregulatoryreliefofficeshallgrantordenyarequestforanextensionby
19theendofthetwenty-four-monthdemonstrationperiod.
20 (3)Theregulatoryreliefofficemaygrantanextensionfornotmorethantwelve
21monthsaftertheendofthedemonstrationperiod.
22 (4)Sandboxparticipantsmayapplyforadditionalextensionsinaccordancewith
23thecriteriausedtoassesstheirinitialapplication,uptoacumulativemaximumofseven
24yearsinclusiveoftheoriginaltwenty-four-monthdemonstrationperiod.
25 (5)Notwithstandingtheprovisionsofsubsection3ofthissectiontothecontrary,
26ifasandboxparticipantisgrantedanextensionpursuanttothissubsectionbeyondthe
27twenty-four-monthdemonstrationperiod,thedemonstrationshallnotbesubjectto
28enforcementofthelawsorregulationsthatwerewaivedorsuspendedaspartofthe
29sandboxprogramuntiltheendoftheextendeddemonstrationperiod.
30 5.(1)Asandboxparticipantshallretainrecords,documents,anddataproduced
31intheordinarycourseofbusinessregardinganinnovativeofferingdemonstratedinthe
32sandboxprogramfortwenty-fourmonthsafterexitingthesandboxprogram.
33 (2)Theregulatoryreliefofficemayrequestrelevantrecords,documents,and
34datafromasandboxparticipant,and,upontheregulatoryreliefoffice'srequest,the
35sandboxparticipantshallmakesuchrecords,documents,anddataavailablefor
36inspectionbytheregulatoryreliefoffice.
37 6.Ifasandboxparticipantceasestoprovideaninnovativeofferingbeforethe
38endofademonstrationperiod,thesandboxparticipantshallnotifytheregulatoryrelief
39officeandeachapplicableagencyandreportonactionstakenbythesandbox
40participanttoensureconsumershavenotbeenharmedasaresult.
41 7.Theregulatoryreliefofficeshallestablishquarterlyreportingrequirements
42foreachsandboxparticipant,includinginformationaboutanyconsumercomplaints.
43 8.(1)Thesandboxparticipantshallnotifytheregulatoryreliefofficeandeach
44applicableagencyofanyincidentsthatresultinharmtothehealth,safety,orfinancial
45well-beingofaconsumer.Theparametersforsuchincidentsthatshallbereportedshall
46belaidoutinthewrittenagreementbetweentheapplicantandtheregulatoryrelief
47office.Anyincidentreportsshallbepubliclyavailableontheregulatorysandbox
48webpageprovided,however,thatanyinformationcontainedinsuchreportsthat
49constitutesproprietaryorconfidentialtradesecretsshallnotbesubjecttodisclosure
50pursuanttochapter610.
HCSSSSCSSBs3&69 103 51 (2)Ifasandboxparticipantfailstonotifytheregulatoryreliefofficeandeach
52applicableagencyofanyincidentsrequiredtobereported,ortheregulatoryreliefoffice
53oranapplicableagencyhasevidencethatsignificantharmtoaconsumerhasoccurred,
54theregulatoryreliefofficemayimmediatelyremovethesandboxparticipantfromthe
55sandboxprogram.
56 9.Nolaterthanthirtydaysafterthedayonwhichasandboxparticipantexits
57thesandboxprogram,thesandboxparticipantshallsubmitawrittenreporttothe
58regulatoryreliefofficeandeachapplicableagencydescribinganoverviewofthe
59sandboxparticipant'sdemonstration.Failuretosubmitsuchareportshallresultinthe
60sandboxparticipantandanyentitythatlateremploysamemberoftheleadershipteam
61ofthesandboxparticipantbeingprohibitedfromfutureparticipationinthesandbox
62program.Suchreportshallincludeany:
63 (1)Incidentsofharmtoconsumers;
64 (2)Legalactionfiledagainstthesandboxparticipantasaresultofthe
65participant'sdemonstration;or
66 (3)Complaintfiledwithanapplicableagencyasaresultofthesandbox
67participant'sdemonstration.
68
69Anyincidentreportsofharmtoconsumers,legalactionsfiledagainstasandbox
70participant,orcomplaintsfiledwithanapplicableagencyshallbecompiledandmade
71publiclyavailableontheregulatorysandboxwebpageprovided,however,thatany
72informationcontainedinsuchreportsorcomplaintsthatconstitutesproprietaryor
73confidentialtradesecretsshallnotbesubjecttodisclosurepursuanttochapter610.
74 10.Nolaterthanthirtydaysafterthedayonwhichanapplicableagency
75receivesthequarterlyreportrequiredbysubsection7ofthissectionorawrittenreport
76fromasandboxparticipantasrequiredbysubsection9ofthissection,theapplicable
77agencyshallprovideawrittenreporttotheregulatoryreliefofficeonthe
78demonstration,whichdescribesanystatutoryorregulatoryreformtheapplicable
79agencyrecommendsasaresultofthedemonstration.
80 11.Theregulatoryreliefofficemayremoveasandboxparticipantfromthe
81sandboxprogramatanytimeiftheregulatoryreliefofficedeterminesthatasandbox
82participanthasengagedin,isengagingin,orisabouttoengageinanypracticeor
83transactionthatisinviolationofsections620.3900to620.3930orthatconstitutesa
84violationofalaworregulationforwhichsuspensionorwaiverhasnotbeengranted
85pursuanttothesandboxprogram.Informationonanyremovalofasandbox
86participantforengaginginanypracticeortransactionthatconstitutesaviolationoflaw
87orregulationforwhichsuspensionorwaiverhasnotbeengrantedpursuanttothe
HCSSSSCSSBs3&69 104 88sandboxprogramshallbemadepubliclyavailableontheregulatorysandboxwebpage,
89provided,however,thatanyinformationthatconstitutesproprietaryorconfidential
90tradesecretsshallnotbesubjecttodisclosurepursuanttochapter610.
[347.010.Sections347.010to347.187shallbeknownandmaybe
2 citedasthe"MissouriLimitedLiabilityCompanyAct".]
[347.015.Asusedinsections347.010to347.187,thefollowingterms
2 mean:
3 (1)"Articlesoforganization",thearticlesreferredtoinsection
4 347.039,filedwiththesecretaryforthepurposeofformingalimitedliability
5 company,asthesamemaybeamendedorrestatedfromtimetotimeas
6 providedinsections347.010to347.187;
7 (2)"Authorizedperson",manager,ormember,ifmanagementofthe
8 limitedliabilitycompanyisvestedinthemembers;
9 (3)"Bankruptcy",theentryofanorderforreliefbythecourtina
10 proceedingundertheUnitedStatesBankruptcyCode,Title11,U.S.C.,as
11 amended,oritsequivalentunderastateinsolvencyactorasimilarlawof
12 otherjurisdictions;
13 (4)"Business"includeseverytrade,occupationorprofession;
14 (5)"Contribution",cash,otherproperty,theuseofproperty,services
15 rendered,apromissorynoteorotherbindingobligationtocontributecashor
16 propertyorperformservicesoranyothervaluableconsiderationtransferredby
17 apersontothelimitedliabilitycompanyasaprerequisiteformembershipin
18 thelimitedliabilitycompanyandanysubsequenttransfertothelimited
19 liabilitycompanybyapersoninhiscapacityasamember;
20 (6)"Court"includeseverycourtandjudgehavingjurisdictioninthe
21 case;
22 (7)"Domesticlimitedliabilitycompany"or"limitedliability
23 company",alimitedliabilitycompanyorganizedandexistingundersections
24 347.010to347.187;
25 (8)"Eventofwithdrawal",aneventthatcausesapersontoceasetobe
26 amemberasprovidedinsection347.123;
27 (9)"Foreignlimitedliabilitycompany",alimitedliabilitycompany
28 formedunderthelawsofanyjurisdictionotherthanthestateofMissouri;
29 (10)"Manager",withrespecttoalimitedliabilitycompanywhose
30 articlesoforganizationstatethatmanagementofthelimitedliabilitycompany
31 isvestedinoneormoremanagers,thepersonorpersonsdesignated,appointed
32 orelectedassuchinthemannerprovidedinsubsection2ofsection347.079;
33 (11)"Member",anypersonthatsignsinpersonorbyanattorneyin
34 fact,orotherwiseisapartytotheoperatingagreementatthetimethelimited
35 liabilitycompanyisformedandisidentifiedasamemberinthatoperating
36 agreementandanypersonwhoissubsequentlyadmittedasamemberina
37 limitedliabilitycompanyinaccordancewithsections347.010to347.187and
38 theoperatingagreement,untilsuchtimeasaneventofwithdrawaloccurswith
39 respecttosuchperson;
HCSSSSCSSBs3&69 105 40 (12)"Member'sinterest",amember'sshareoftheprofitsandlossesof
41 alimitedliabilitycompanyandtherighttoreceivedistributionsoflimited
42 liabilitycompanyassets;
43 (13)"Operatingagreement",anyvalidagreementoragreements,
44 writtenororal,amongallmembers,orwrittendeclarationbythesolemember
45 concerningtheconductofthebusinessandaffairsofthelimitedliability
46 companyandtherelativerights,dutiesandobligationsofthemembersand
47 managers,ifany;
48 (14)"Organizer",anyofthesignersofthearticlesoforganization;
49 (15)"Person"includesindividuals,partnerships,domesticorforeign
50 limitedpartnerships,domesticorforeignlimitedliabilitycompanies,domestic
51 orforeigncorporations,trusts,businesstrusts,employeestockownership
52 trusts,realestateinvestmenttrusts,estates,associations,andotherbusinessor
53 not-for-profitentities;
54 (16)"Realproperty"includesland,anyinterest,leaseholdorestatein
55 landandanyimprovementsthereon;
56 (17)"Secretary",thesecretaryofstateforthestateofMissouriandits
57 delegatesresponsiblefortheadministrationofsections347.010to347.187;
58 (18)"Survivingentity",thesurvivingorresultingpersonpursuanttoa
59 mergerorconsolidationinwhichoneormoredomesticlimitedliability
60 companiesareparties.]
[347.017.Nolimitedliabilitycompanyformedbeforetheeffective
2 dateofthisact,shallbedeemednotincompliancewiththischapterforthe
3 reasonthatsuchlimitedliabilitycompanywasformedwith,hadorhasonly
4 onemember.]
[347.020.Thenameofeachlimitedliabilitycompanyassetforthinits
2 articlesoforganization:
3 (1)Shallcontainthewords"limitedcompany"or"limitedliability
4 company"ortheabbreviation"LC","LLC","L.C."or"L.L.C."andshallbe
5 thenameunderwhichthelimitedliabilitycompanytransactsbusinessinthis
6 stateunlessthelimitedliabilitycompanyregistersanothernameunderwhich
7 ittransactsbusinessasprovidedunderchapter417orconspicuouslydiscloses
8 itsnameassetforthinitsarticlesoforganization;
9 (2)Maynotcontaintheword"corporation","incorporated","limited
10 partnership","limitedliabilitypartnership","limitedliabilitylimited
11 partnership",or"Ltd."oranyabbreviationofoneofsuchwordsorany
12 wordorphrasewhichindicatesorimpliesthatitisorganizedforanypurpose
13 notstatedinitsarticlesoforganizationorthatitisagovernmentalagency;and
14 (3)Mustbedistinguishableupontherecordsofthesecretaryfromthe
15 nameofanycorporation,limitedliabilitycompany,limitedpartnership,
16 limitedliabilitypartnership,orlimitedliabilitylimitedpartnershipwhichis
17 licensed,organized,reserved,orregisteredunderthelawsofthisstateasa
18 domesticorforeignentity,unless:
19 (a)Suchotherholderofareservedorregisterednameconsentstosuch
20 useinwritingandfilesappropriatedocumentationtothesecretarytochange
HCSSSSCSSBs3&69 106 21 itsnametoanamethatisdistinguishableupontherecordsofthesecretary
22 fromthenameoftheapplyinglimitedliabilitycompany;or
23 (b)Acertifiedcopyofafinaldecreeofacourtofcompetent
24 jurisdictionestablishingthepriorrightoftheapplicanttotheuseofsuchname
25 inthisstateisfiledwiththesecretary.]
[347.025.1.Theexclusiverighttotheuseofanamemaybereserved
2 by:
3 (1)Anypersonintendingtoorganizealimitedliabilitycompanyunder
4 sections347.010to347.187andtoadoptthatname;
5 (2)Anydomesticlimitedliabilitycompanyintendingtoadoptthat
6 name;
7 (3)Anyforeignlimitedliabilitycompanyregisteredinthisstate
8 intendingtoadoptthatnameorintendingtoregisterinthisstateandtoadopt
9 thatname;or
10 (4)Anypersonintendingtoorganizeaforeignlimitedliability
11 companyandintendingtohaveitregisteredinthisstateandtoadoptthat
12 name.
13 2.Thereservationshallbemadebyfilingwiththesecretaryina
14 formatprescribedbythesecretary,executedbytheapplicant,toreservea
15 specifiedname.Ifthesecretaryfindsthatthenameisnotregisteredwiththe
16 secretaryasacorporation,limitedliabilitycompany,limitedpartnership,
17 limitedliabilitypartnership,orlimitedliabilitylimitedpartnership,andis
18 otherwiseavailableforuse,itshallreservethenamefortheexclusiveuseof
19 theapplicantforaperiodofsixtydaysfromandafterthedatetheapplication
20 isfiledwiththestate.Anamereservationshallnotexceedaperiodofone
21 hundredeightydaysfromthedateofthefirstnamereservationapplication.
22 Upontheonehundredeighty-firstdaythenameshallceasereservestatusand
23 maynotbeplacedbackinsuchstatus.]
[347.030.1.Eachlimitedliabilitycompanyshallhaveand
2 continuouslymaintaininthisstate:
3 (1)Aregisteredofficewhichmaybe,butneednotbe,thesameasa
4 placeofitsbusinessinthisstate;
5 (2)Aregisteredagentforserviceofanyprocess,noticeordemand
6 requiredorpermittedbylawtobeserveduponthelimitedliabilitycompany,
7 whichagentmaybeeitheranindividual,residentofthisstate,whosebusiness
8 officeisidenticalwithsuchregisteredoffice,oradomesticorforeign
9 corporationauthorizedtodobusinessinthisstate,andwhosebusinessofficeis
10 identicalwithsuchregisteredoffice.Exceptasprovidedinthissectionand
11 subdivision(5)ofsection347.153,thesecretaryshallnotbeappointedasthe
12 residentagentforanylimitedliabilitycompany.
13 2.Alimitedliabilitycompanymay,fromtimetotime,changeits
14 registeredagentortheaddressofitsregisteredoffice.Alimitedliability
15 companyshallchangeitsregisteredagentiftheofficeofitsregisteredagent
16 shallbecomevacantforanyreason,ifitsregisteredagentbecomes
17 disqualifiedorincapacitatedtoact,orifthelimitedliabilitycompany
18 revokestheappointmentofitsregisteredagent.Alimitedliabilitycompany
HCSSSSCSSBs3&69 107 19 maychangeitsregisteredagentortheaddressofitsregisteredoffice,orboth,
20 byafilingwiththesecretary,astatementsettingforth:
21 (1)Thenameofthelimitedliabilitycompany;
22 (2)Theaddress,includingstreetandnumber,ifany,ofitsthen
23 registeredoffice;
24 (3)Iftheaddressofitsregisteredofficeistobechanged,theaddress,
25 includingstreetandnumber,ifany,towhichtheregisteredofficeistobe
26 changed;
27 (4)Thenameofitsthenregisteredagent;
28 (5)Ifitsregisteredagentistobechanged,thenameofitssuccessor
29 registeredagentandthesuccessorregisteredagent'swrittenconsenttothe
30 appointmenteitheronthestatementorattachedthereto;
31 (6)Thattheaddressofitsregisteredofficeandtheaddressofthe
32 businessofficeofitsregisteredagent,aschanged,willbeidentical;and
33 (7)Thatsuchchangewasauthorizedbythelimitedliabilitycompany.
34 3.Thechangeofaddressoftheregisteredoffice,orthechangeofthe
35 registeredagent,orboth,asthecasemaybe,shallbecomeeffectiveuponthe
36 filingofsuchstatementbythesecretary.
37 4.Ifaregisteredagentchangesthestreetaddressofhisbusiness
38 office,hemaychangethestreetaddressoftheregisteredofficeofanylimited
39 liabilitycompanyforwhichheistheregisteredagentbynotifyingthelimited
40 liabilitycompanyinwritingofthechangeandsigning,eithermanuallyorin
41 facsimile,anddeliveringtothesecretaryofstateforfilingastatementof
42 changethatcomplieswiththerequirementsofsubdivisions(1)to(6)of
43 subsection2ofthissectionandrecitesthatthelimitedliabilitycompanyhas
44 beennotifiedofthechange.
45 5.Thechangeofanaddressoftheregisteredofficeshallbecome
46 effectiveuponthefilingofthestatementbythesecretary.
47 6.Anyregisteredagentofalimitedliabilitycompanymayresignas
48 suchagentbythefilingwiththesecretaryduplicateoriginalsofastatement,
49 onaformapprovedbythesecretary,settingforth:
50 (1)Thenameofthelimitedliabilitycompany;
51 (2)Theaddress,includingstreetandnumber,ifany,ofitsthen
52 registeredoffice;
53 (3)Thenameofsuchregisteredagent;and
54 (4)Arepresentationthatsuchregisteredagenthasgivenwrittennotice
55 ofsuchagent'sresignationandacopyofsuchstatementtothelimitedliability
56 company.Suchresignationshallbecomeeffectiveuponexpirationofthirty
57 daysafterreceiptofsuchstatementbythesecretary,orontheappointmentofa
58 newregisteredagent,whicheveroccursearlier.]
[347.033.1.Theregisteredagentsoappointedbyalimitedliability
2 companyshallbeanagentofsuchlimitedliabilitycompanyuponwhomany
3 process,noticeordemandrequiredorpermittedbylawtobeserveduponthe
4 limitedliabilitycompanymaybeserved,andwhich,whensoserved,shallbe
5 lawfulpersonalserviceonthelimitedliabilitycompany.
6 2.Inlieuofserviceupontheregisteredagent,process,noticeor
7 demandmaybeserveduponanauthorizedpersonorintheeventneitherthe
HCSSSSCSSBs3&69 108 8 registeredagentnoranauthorizedpersoncanbelocatedintheexerciseofdue
9 diligence,process,noticeordemandmaybeserveduponanorganizer.
10 3.Intheeventthatalimitedliabilitycompanyshallfailtoappointor
11 maintainaregisteredagentinthisstateorintheeventneithertheregistered
12 agent,anauthorizedperson,noranorganizerforthelimitedliabilitycompany
13 canbelocatedintheexerciseofduediligence,thenthesecretary,aslongas
14 suchdefaultexists,shallbeautomaticallyappointedasanagentofsuch
15 limitedliabilitycompanyuponwhomanyprocess,notice,ordemandrequired
16 orpermittedbylawtobeserveduponthelimitedliabilitycompanymaybe
17 served.Serviceonthesecretaryofanyprocess,noticeordemandagainsta
18 limitedliabilitycompanyshallbemadebydeliveringtoandleavingwiththe
19 secretary,orwithanyclerkhavingchargeofthelimitedliabilitycompany
20 departmentofthesecretary,acopyofsuchprocess,noticeordemand.Inthe
21 eventthatanyprocess,noticeordemandisservedonthesecretary,the
22 secretaryshallimmediatelycauseacopythereoftobeforwardedbyregistered
23 mail,totheaddressforanyorganizerassetforthinthearticlesof
24 organization.Thesecretaryshallkeepcopiesofanyprocess,noticeordemand
25 serveduponthesecretarypursuanttosections347.010to347.187foraperiod
26 offiveyears.Nothingcontainedinthissectionshalllimitoraffecttherightto
27 serveanyprocess,noticeordemandrequiredorpermittedbylawtobeserved
28 uponalimitedliabilitycompanyinanyothermannernoworhereafter
29 permittedbylaw.]
[347.035.Alimitedliabilitycompanymaybeorganizedunder
2 sections347.010to347.187andmayconductorpromoteanylawful
3 businessesorpurposeswithinthisstateoranyotherjurisdiction.]
[347.037.1.Anyperson,whetherornotamemberormanager,may
2 formalimitedliabilitycompanybysigningandfilingarticlesoforganization
3 forsuchlimitedliabilitycompanywiththesecretary.
4 2.Alimitedliabilitycompanyisformedwhenthearticlesof
5 organizationarefiledwiththesecretaryoronalaterdatesetforthinthe
6 articlesoforganization,nottoexceedninetydaysfromthefilingdate.Ifthe
7 articlesoforganization,asdeliveredtothesecretary,donotsubstantially
8 conformtothefilingprovisionsofsections347.010to347.187,thesecretary
9 shallreturnthearticlesoforganizationtothepersonsofilingthearticlesof
10 organizationwithastatementsettingforththenonconformity.
11 3.Eachcopyofthearticlesoforganizationstamped"filed"and
12 markedwiththefilingdateisconclusiveevidencethatallconditionsprecedent
13 requiredtobeperformedbytheorganizershavebeencompliedwithandthat
14 thelimitedliabilitycompanyhasbeenlegallyorganizedandformedunder
15 sections347.010to347.187andisnoticeforallpurposesofallotherfacts
16 requiredtobesetforththerein.
17 4.Alimitedliabilitycompanymaynottransactbusinessorincur
18 indebtedness,exceptthatwhichisincidentaltoitsorganizationortoobtaining
19 subscriptionsfororpaymentofcontributions,untilthearticlesoforganization
20 havebeenfiledwiththesecretaryoruntiltheformationdatespecifiedinthe
21 articlesoforganization.Personsengagedinprefilingactivitiesotherthan
HCSSSSCSSBs3&69 109 22 thosedescribedintheprecedingsentenceshallbejointlyandseverallyliable
23 exceptasprovidedinthissectionforanydebtsorliabilitiesincurredinthe
24 courseofthoseactivities.Thissectionshallnotbeinterpretedtoinvalidate
25 anydebts,contracts,orliabilitiesofthelimitedliabilitycompanyincurred
26 solelyonbehalfofalimitedliabilitycompanytobeformed,norshallitbe
27 interpretedtoimposepersonalliabilityonthepersonsincurringsuchdebts,
28 contractsorliabilitiessolelyonbehalfofthelimitedliabilitycompanytothe
29 extentsodisclosedortotheextentsuchdebts,contractsorliabilitiesprovide
30 otherwise.]
[347.039.1.Thearticlesoforganizationshallsetforth:
2 (1)Thenameofthelimitedliabilitycompany;
3 (2)Thepurposeorpurposesforwhichthelimitedliabilitycompanyis
4 organized,whichmaybestatedtobe,ortoinclude,thetransactionofanyor
5 alllawfulbusinessforwhichalimitedliabilitycompanymaybeorganized
6 undersections347.010to347.187;
7 (3)Theaddress,includingstreetandnumber,ifany,oftheregistered
8 officeandthenameoftheregisteredagentatsuchoffice;
9 (4)Astatementastowhethermanagementofthelimitedliability
10 companyisvestedinmanagersorinmembers;
11 (5)Theeventsbywhichthelimitedliabilitycompanyistodissolveor
12 thenumberofyearsthelimitedliabilitycompanyistoexist,whichmaybeany
13 numberorperpetual;and
14 (6)Thenameandphysicalbusinessorresidenceaddressofeach
15 organizer.
16 2.Theinformationprovidedbythelimitedliabilitycompanyunder
17 subdivisions(1)through(6)ofsubsection1ofthissectionshallalsobe
18 providedforeachseparateseriesofthelimitedliabilitycompanyauthorizedto
19 operateundersection347.186.
20 3.Thearticlesoforganizationmaysetforthanyotherprovision,not
21 inconsistentwithlaworsections347.010to347.187,whichareinthe
22 operatingagreementofthelimitedliabilitycompany.]
[347.041.1.Alimitedliabilitycompany'sarticlesoforganizationis
2 amendedbyfilingwiththesecretaryarticlesofamendment,whichshallset
3 forth:
4 (1)Thenameofthelimitedliabilitycompany;
5 (2)Thedatethearticlesofamendmentarefiled,and,ifthearticlesof
6 amendmentprovidethattheyarenottobecomeeffectiveuntilaspecifieddate
7 aftertheirfilingdate,thedatethattheyaretobecomeeffectivewhichmaynot
8 bemorethanninetydaysaftertheirfilingdate;
9 (3)Iftheamendmentisrequiredtobefiledasaresultofthe
10 occurrenceofanyeventspecifiedinsubdivision(2)ofsubsection2ofthis
11 section,thenatureoftheeventandthedatesucheventoccurredoristooccur;
12 (4)Theamendmenttothearticlesoforganization;and
13 (5)Astatementthattheamendmentisauthorizedundertheoperating
14 agreementorisotherwiserequiredtobefiledundertheprovisionsofsections
15 347.010to347.187.
HCSSSSCSSBs3&69 110 16 2.Alimitedliabilitycompany'sarticlesoforganizationshallbe
17 amendedpromptly,butinnoeventmorethansixtydaysaftertheoccurrence
18 ofanyofthefollowingevents:
19 (1)Toreflectanychangeinmanagementofthelimitedliability
20 companythatwaspreviouslyvestedwhetherinmanagersormembers;
21 (2)Toreflectachangeinthenameofthelimitedliabilitycompany;or
22 (3)Toreflectachangeinthetimesetforthinthearticlesof
23 organizationforthelimitedliabilitycompanytodissolve.
24 3.Exceptasotherwiseprovidedintheoperatingagreement,alimited
25 liabilitycompany'sarticlesoforganizationmaybeamendedfromtimetotime
26 inanyandasmanyrespectsasmaybedesiredsolongasitsarticlesof
27 organizationcontainonlysuchprovisionsasarecontainedintheoperating
28 agreementatthetimeofmakingsuchamendment.]
[347.043.1.Alimitedliabilitycompanymayintegrateintoasingle
2 instrumentalloftheprovisionsofitsarticlesoforganizationandamendments
3 thereto,anditmayatthesametimealsofurtheramendorsupplementits
4 articlesoforganizationbyadoptingrestatedarticlesoforganizationasfollows:
5 (1)Iftherestatedarticlesoforganizationmerelyrestateandintegrate
6 butdonotfurtheramendtheinitialarticlesoforganization,aspreviously
7 amendedorsupplementedbyanyarticles,noticesordocumentsthatwere
8 executedandfiledpursuanttosections347.010to347.187,itshallbe
9 specificallydesignatedinitsheadingas"RestatedArticlesofOrganization",
10 togetherwithastatementthatitonlyrestatesandintegratesanddoesnot
11 furtheramendtheprovisionsofthearticlesoforganizationaspreviously
12 amendedorsupplementedandthereisnodiscrepancybetweenthose
13 provisionsandtheprovisionsoftherestatedarticles,andshallbeexecuted
14 andfiledwiththesecretary;or
15 (2)Iftherestatedarticlesrestateandintegrateandalsofurtheramend
16 inanyrespectthearticlesoforganization,aspreviouslyamendedor
17 supplemented,itshallbespecificallydesignatedinitsheadingas"Amended
18 andRestatedArticlesofOrganization",andshallbeexecutedandfiledwith
19 thesecretary.
20 2.Restatedarticlesoforganizationshallstate,eitherintheirheading
21 orinanintroductoryparagraph,thelimitedliabilitycompany'spresentname,
22 and,ifithasbeenchanged,thenameunderwhichitwasoriginallyfiledand
23 thedateoffilingofitsinitialarticlesoforganization.
24 3.Uponthefilingoftherestatedarticlesoforganizationwiththe
25 secretary,theinitialarticles,aspreviouslyamendedorsupplemented,shallbe
26 superseded.Thereafter,therestatedarticlesoforganization,includingany
27 furtheramendmentorchangesmadebytherestatedarticles,shallbethe
28 articlesoforganization,buttheoriginaleffectivedateofformationshall
29 remainunchanged.
30 4.Anyamendmentorchangemadeinconnectionwiththerestatement
31 ofthearticlesoforganizationshallbesubjecttoanyotherprovisionof
32 sections347.010to347.187,notinconsistentwiththissection,thatwould
33 applyifseparatearticlesofamendmentwerefiledtomaketheamendmentor
34 change.]
HCSSSSCSSBs3&69 111 [347.045.Whenalloftheremainingpropertyandassetsofalimited
2 liabilitycompanyhavebeenappliedanddistributedasprovidedinsection
3 347.139orwhenadomesticlimitedliabilitycompanyisnotthesurviving
4 entity,thearticlesoforganizationshallbecancelledbyfilingarticlesof
5 terminationwiththesecretarysettingforth:
6 (1)Thenameofthelimitedliabilitycompany;
7 (2)Thedateoffilingofitsarticlesoforganization;
8 (3)Thereasonforfilingthearticlesoftermination;
9 (4)Thedatethearticlesofterminationarefiled,and,ifsucharticlesof
10 terminationprovidethattheyarenottobecomeeffectiveuntilaspecifieddate
11 aftertheirfilingdate,theeffectivedateofsucharticlesoftermination,which
12 shallbeinnoeventmorethanninetydaysaftertheirfilingdate;
13 (5)Thatanoticeofmergerorconsolidationoranoticeofwindingup
14 disclosingthedissolutionhasbeenfiledwiththesecretaryasprovidedin
15 section347.129or347.137,asthecasemaybe,andthedateonwhichsuch
16 noticewasfiled;and
17 (6)Anyothermatterswhichthemembersshalldetermine.]
[347.047.1.Unlessotherwiseprovidedinsections347.010to
2 347.187,articles,noticesordocumentspermittedorrequiredbysections
3 347.010to347.187tobefiledwiththesecretaryshallbeexecutedinthe
4 followingmanner:
5 (1)Theinitialarticlesoforganizationshallbeexecutedbythe
6 organizerororganizers;
7 (2)Anamendedorrestatedarticlesoforganization,statementof
8 changeofregisteredagentorregisteredoffice,noticeofmergeror
9 consolidation,noticeofwindingup,articlesofterminationorother
10 documentrequiredorpermittedtobefiledundersections347.010to
11 347.187shallbeexecutedbyanauthorizedpersonoranyotherpersonduly
12 authorizedundertheoperatingagreement;and
13 (3)Allarticles,noticesanddocumentsrequiredbysections347.010to
14 347.187tobefiledbyalimitedliabilitycompanywhichisinthehandsofa
15 receiver,trustee,orothercourt-appointedfiduciary,shallbeexecutedbysuch
16 fiduciary.
17 2.Theoriginal,amendedorrestatedarticlesoforganization,noticeof
18 windingup,noticeofmergerorconsolidation,articlesofterminationorother
19 documentrequiredorpermittedtobefiledundersections347.010to347.187
20 maybeexecutedbyapersondulyauthorizedunderapowerofattorney.
21 3.Theexecutionofanydocumentrequiredbysections347.010to
22 347.187constitutesanaffirmationunderthepenaltiesassetoutinsection
23 575.040thatthefactsstatedthereinaretrueandthatsuchpersonorpersons
24 aredulyauthorizedtoexecutesuchdocumentorareotherwiserequiredtofile
25 suchdocumentundersections347.010to347.187.]
[347.048.1.(1)Anylimitedliabilitycompanythatownsandrentsor
2 leasesrealproperty,orownsunoccupiedrealproperty,locatedwithin:
HCSSSSCSSBs3&69 112 3 (a)Anyhomerulecitywithapopulationofmorethanfourhundred
4 thousandinhabitantswhichislocatedinmorethanonecounty;
5 (b)Anyhomerulecitywithmorethanonehundredsixteenthousand
6 butfewerthanonehundredfifty-fivethousandinhabitants;or
7 (c)Anyhomerulecitywithmorethanseventy-onethousandbutfewer
8 thanseventy-ninethousandinhabitants
9
10 shallfilewiththatcity'sclerkanaffidavitlistingthenameandstreetaddressof
11 atleastonenaturalpersonwhohasmanagementcontrolandresponsibilityfor
12 therealpropertyownedandleasedorrentedbythelimitedliabilitycompany,
13 orownedbythelimitedliabilitycompanyandunoccupied.
14 (2)Withinthirtydaysfollowingthecessationofmanagementcontrol
15 andresponsibilityofanynaturalpersonnamedinanaffidavitdescribedinthis
16 section,thelimitedliabilitycompanyshallfileasuccessoraffidavitlistingthe
17 nameandstreetaddressofanaturalpersonsuccessor.
18 2.Nolimitedliabilitycompanyshallbechargedafeeforfilingan
19 affidavitorsuccessoraffidavitrequiredunderthissection.
20 3.Ifalimitedliabilitycompanyrequiredbythissectiontofilean
21 affidavitorasuccessoraffidavitfailsorrefusestofilesuchcompleted
22 affidavitwiththeappropriateclerk,anypersonwhoisadverselyaffectedby
23 thefailureorrefusalorthehomerulecitymaypetitionthecircuitcourtinthe
24 countywherethepropertyislocatedtodirecttheexecutionandfilingofsuch
25 document.]
[347.049.Ifapersonrequiredbysection347.047toexecutearticles,
2 noticesordocumentsrequiredtobefiledpursuanttosections347.010to
3 347.187failsorrefusestodoso,anyotherpersonwhoisadverselyaffectedby
4 thefailureorrefusalmaypetitionthecircuitcourtinthecountywherethe
5 principalplaceofbusinessortheregisteredofficeofthelimitedliability
6 companyislocatedtodirecttheexecutionandfilingofsuchdocument.Ifthe
7 courtfindsthatitisproperforsuchdocumenttobeexecutedandfiledandthat
8 therehasbeenfailureorrefusaltoexecuteandfilesuchdocument,itshall
9 orderthesecretarytofiletheappropriatedocument.]
[347.051.1.Theoriginalcopyofthearticlesoforganization,an
2 amendmentorrestatementofsucharticles,articlesoftermination,statementof
3 changeofregisteredagentorregisteredoffice,oranyotherstatement,
4 documentornoticerequiredorpermittedtobefiledpursuanttosections
5 347.010to347.187,orofanyjudicialdecreerequiringthefilingofsuch
6 documentundersections347.010to347.187,inaformatasprescribedbythe
7 secretaryofstate,shallbedeliveredtothesecretaryofstate.Apersonwho
8 executesarticlesorotherdocumentstobefiledundersections347.010to
9 347.187asanagentorfiduciaryneednotevidencehisauthorityasa
10 prerequisitetofiling.Ifthesecretarydeterminesthatthedocuments
11 substantiallyconformtothefilingprovisionsofsections347.010to347.187,it
12 shall,whenallrequiredfilingfeeshavebeenpaid:
13 (1)Endorseontheacceptedsignedoriginaltheword"Filed",andthe
14 dateofitsacceptanceforfiling;
HCSSSSCSSBs3&69 113 15 (2)Theacceptedoriginalfilingandcertificateshallberetainedbythe
16 secretaryofstateasastaterecordandacopyofbothshallbereturnedtothe
17 personwhosubmittedsaiddocumentortheperson'srepresentative.
18 2.Uponthereturnbythesecretaryofanyarticles,notices,documents
19 orjudicialdecreeofamendmentmarked"Filed",thepersonorpersons
20 executingsuchdocumentsshallpromptlydeliverormailacopythereofto
21 eachmemberunlesstheoperatingagreementprovidesotherwise.]
[347.053.1.Ifarticlesoforganization,articlesofamendment,a
2 noticeofwindingup,oranoticeofmergerorconsolidationfiledpursuantto
3 sections347.010to347.187containsafalsestatement,onewhosufferslossby
4 goodfaithrelianceonsuchstatementmayrecoverdamagesforthelossfrom
5 thelimitedliabilitycompanyandfromthepersonorpersonswhoexecuted
6 suchdocument,orcausedanothertoexecuteitonhisbehalf,knowingthe
7 statementtobefalseatthetimesuchdocumentwasexecuted.
8 2.Ifthepersonorpersonsrequiredundersection347.047toexecute
9 thearticlesofamendmentfailtofilethearticlesofamendmentwithinthetime
10 periodprescribedinsubsection2ofsection347.041,thelimitedliability
11 companyandsuchpersonorpersonsshallbeassessedbythesecretaryacivil
12 penaltyintheaggregateamountoftendollarsadayforeachdaythe
13 amendmenthasnotbeendeliveredtothesecretary,butnottoexceedone
14 thousanddollars;exceptthatthesecretarymaywaivethepenaltyupon
15 showingofreasonablecauseforthefailuretoamendinatimelymanner,and
16 innoeventshallapenaltybeimposedunderthissectionifaproceedingunder
17 section347.049hasbeencommencedwithinsuchtimeperiod.Failuretofile
18 articlesofamendment,anoticeofwindinguporarticlesofterminationshall
19 notbegroundsforimposingliabilityonanypersonforthedebtsand
20 obligationsofthelimitedliabilitycompany.]
[347.055.1.Adomesticorforeignlimitedliabilitycompanymayfile
2 astatementofcorrectioninaformatprescribedbythesecretaryofstate,ifthe
3 fileddocumentcontainsanincorrectstatementasofthedatesuchdocument
4 wasfiled.
5 2.Thestatementofcorrectionshall:
6 (1)Statethenameofthelimitedliabilitycompany;
7 (2)Statethetypeofdocumentbeingcorrected;
8 (3)Statethenameofthejurisdictionunderthelawoforganization;
9 (4)Describetheincorrectstatementandthereasonforthecorrection;
10 (5)Ifthecorrectionisforaforeignliabilitycompanywithregardtoan
11 incorrectname,provideacertificateofexistenceordocumentofsimilar
12 importdulyauthenticatedbythesecretaryofstateorotherofficialhaving
13 custodyoftherecordsinthestateorcountryunderwhoselawsitisregistered.
14 3.Articlesofcorrectionareeffectiveontheeffectivedateofthe
15 documenttheycorrectexceptastopersonsrelyingontheuncorrected
16 documentandadverselyaffectedbythecorrection.Astothosepersons,
17 articlesofcorrectionareeffectivewhenfiled.
18 4.Thesecretaryofstateshallcollectafilingfeeoffivedollarsupon
19 filingthestatementofcorrection.
HCSSSSCSSBs3&69 114 20 5.Thestatementofcorrectionshallbesignedbyanauthorizedperson
21 ofthelimitedliabilitycompany.]
[347.057.Apersonwhoisamember,manager,orboth,ofalimited
2 liabilitycompanyisnotliable,solelybyreasonofbeingamemberormanager,
3 orboth,underajudgment,decreeororderofacourt,orinanyothermanner,
4 foradebt,obligationorliabilityofthelimitedliabilitycompany,whether
5 arisingincontract,tortorotherwiseorfortheactsoromissionsofanyother
6 member,manager,agentoremployeeofthelimitedliabilitycompany.]
[347.059.Allpersonswhoassumetoactasalimitedliabilitycompany
2 withoutauthoritytodosoandwithoutagoodfaithbeliefthattheyhavesuch
3 authorityshallbejointlyandseverallyliableforalldebtsandliabilities
4 incurredbysuchpersonssoacting.]
[347.061.1.Propertytransferredtoorotherwiseacquiredbyalimited
2 liabilitycompanybecomespropertyofthelimitedliabilitycompany.A
3 memberhasnointerestinspecificlimitedliabilitycompanyproperty.
4 2.Propertymaybeacquired,heldandconveyedinthenameofa
5 limitedliabilitycompany.Anyestateinrealpropertymaybeacquiredinthe
6 nameofthelimitedliabilitycompanyandtitletoanyestatesoacquiredshall
7 vestinthelimitedliabilitycompanyitselfratherthaninthemembers
8 individually.
9 3.Subjecttosubsection4ofthissection:
10 (1)Propertyispresumedtobeownedbythelimitedliabilitycompany
11 ifitisacquiredinthenameofthelimitedliabilitycompany;
12 (2)Propertyispresumedtobeownedbythelimitedliabilitycompany
13 ifitispurchasedwithfundsofthelimitedliabilitycompanyevenifitis
14 acquiredinthenameofamemberorotherperson;and
15 (3)Propertyispresumedtobeseparatepropertyofoneormore
16 membersorotherpersonsifitisacquiredinthenameornamesofsuchperson
17 orpersonswithoutuseoffundsofthelimitedliabilitycompanyeventhough
18 thepropertywasusedforpurposesofthebusinessofthelimitedliability
19 company.
20 4.Realpropertyandotherpropertyheldofpublicrecordotherwise
21 thaninthenameofthelimitedliabilitycompany,theownershipofwhichis
22 customarilypubliclyrecorded,shallnotbedeemedtobeownedbythelimited
23 liabilitycompanytotheprejudiceofapersonwhoisnotamemberandwho
24 didnothaveactualknowledgetothecontrary.]
[347.063.1.Titletopropertyofthelimitedliabilitycompanythatis
2 heldinthenameofthelimitedliabilitycompanymaybetransferredbyan
3 instrumentoftransferexecutedbyanyauthorizedpersoninthenameofthe
4 limitedliabilitycompany.
5 2.Titletopropertyofthelimitedliabilitycompanythatisheldinthe
6 nameofoneormoremembersormanagerswithanindicationinthe
7 instrumenttransferringtitletothepropertytothemoftheircapacityas
8 membersormanagersofalimitedliabilitycompanyoroftheexistenceofa
HCSSSSCSSBs3&69 115 9 limitedliabilitycompany,evenifthenameofthelimitedliabilitycompanyis
10 notindicated,maybetransferredbyaninstrumentoftransferexecutedbythe
11 personsinwhosenametitleisheld.
12 3.Propertytransferredundersubsections1and2ofthissectionmay
13 berecoveredbythelimitedliabilitycompanyifitprovesthattheactofthe
14 personexecutingtheinstrumentoftransferdidnotbindthelimitedliability
15 companyundersection347.065,unlessthepropertyhasbeentransferredby
16 theinitialtransfereeorapersonclaimingthroughtheinitialtransfereetoa
17 subsequenttransfereewhogivesvaluewithouthavingnoticethattheperson
18 whoexecutedtheinstrumentofinitialtransferlackedauthoritytobindthe
19 limitedliabilitycompany.
20 4.Titletopropertyofthelimitedliabilitycompanythatisheldinthe
21 nameofoneormorepersonsotherthanthelimitedliabilitycompanywithout
22 anindicationintheinstrumenttransferringtitletothepropertytothemoftheir
23 capacityasmembersormanagersofalimitedliabilitycompanyorofthe
24 existenceofalimitedliabilitycompany,maybetransferredfreeofanyclaims
25 ofthelimitedliabilitycompanyorthemembersbythepersonsinwhosename
26 titleisheldtoatransfereewhogivesvaluewithouthavingnoticethatitis
27 propertyofalimitedliabilitycompany.]
[347.065.1.Exceptasprovidedinsubsection2ofthissection,every
2 memberisanagentofthelimitedliabilitycompanyforthepurposeofits
3 businessandaffairs,andtheactofanymember,including,butnotlimitedto,
4 theexecutionofanyinstrument,forapparentlycarryingonintheusualwayof
5 thebusinessoraffairsofthelimitedliabilitycompanyofwhichheisa
6 memberbindsthelimitedliabilitycompany,unlessthemembersoactinghas
7 infactnoauthoritytoactforthelimitedliabilitycompanyintheparticular
8 matter,andthepersonwithwhomheisdealinghasknowledgeofthefactthat
9 thememberhasnosuchauthority.
10 2.Ifthearticlesoforganizationprovidethatmanagementofthe
11 limitedliabilitycompanyisvestedinoneormoremanagers:
12 (1)Nomember,actingsolelyinhiscapacityasamember,isanagent
13 ofthelimitedliabilitycompany;and
14 (2)Everymanagerisanagentofthelimitedliabilitycompanyforthe
15 purposeofitsbusinessandaffairs,andtheactofanymanagerforapparently
16 carryingonintheusualwayofthebusinessoraffairsofthelimitedliability
17 companyofwhichheisamanagerbindsthelimitedliabilitycompany,unless
18 themanagersoactinghas,infact,noauthoritytoactforthelimitedliability
19 companyintheparticularmatter,andthepersonwithwhomheisdealinghas
20 knowledgeofthefactthatthemanagerhasnosuchauthority.
21 3.Anactofamemberormanagerwhichisnotapparentlyforthe
22 carryingontheusualwayofthebusinessoraffairsofthelimitedliability
23 companydoesnotbindthelimitedliabilitycompanyunlessauthorizedin
24 accordancewiththetermsoftheoperatingagreement,atthetimeofthe
25 transactionoratanyothertime.
26 4.Noactofamember,managerorotheragentofalimitedliability
27 companyincontraventionofarestrictiononauthorityshallbindthelimited
28 liabilitycompanytopersonshavingknowledgeoftherestriction.]
HCSSSSCSSBs3&69 116 [347.067.1.Afterdissolution,anauthorizedpersoncanbindthe
2 limitedliabilitycompany,exceptasprovidedinsubsection2ofthissection,as
3 follows:
4 (1)Byanyactappropriateforwindinguptheaffairsofthelimited
5 liabilitycompanyorcompletingtransactionsunfinishedatdissolution;and
6 (2)Byanytransactionwhich,althoughnotauthorized,wouldbindthe
7 limitedliabilitycompanyifdissolutionhadnottakenplace,iftheotherparty
8 tothetransaction:
9 (a)Hadextendedcredittothelimitedliabilitycompanywithintwo
10 yearspriortotheeventcausingthedissolutionandhadnoknowledgeornotice
11 ofthedissolution;or
12 (b)Thoughsuchpartyhadnotsoextendedcredit,hadnevertheless
13 knownofthelimitedliabilitycompanypriortodissolution,hadnoknowledge
14 ornoticeofdissolution,thefactofdissolutionhadnotbeendisclosedbya
15 noticeofwindingupfiledpursuanttosection347.137oranoticeofmergeror
16 consolidationfiledpursuanttosection347.129.
17 2.Thelimitedliabilitycompanyisnotboundbyanyunauthorizedact
18 ofanauthorizedpersonafterdissolution:
19 (1)Wherethelimitedliabilitycompanyisdissolvedbecauseitis
20 unlawfultocarryonthebusiness,unlesstheactisappropriateforwindingup
21 limitedliabilitycompanyaffairs;
22 (2)Wheresuchauthorizedpersonisthesubjectofabankruptcyand
23 thereisatleastoneremainingauthorizedpersonwhoisnotthesubjectofa
24 bankruptcy;or
25 (3)Wherethepersonsodealingwithsuchauthorizedpersonhas
26 knowledgethatsuchactisnotauthorized.]
[347.069.1.Amember,manager,employee,oragentofalimited
2 liabilitycompanyisnotaproperpartytoproceedingsbyoragainstalimited
3 liabilitycompany,exceptwheretheobjectistoenforcesuchperson'sright
4 againstordutyorliabilitytothelimitedliabilitycompany.Notwithstanding
5 anyprovisionofsections347.010to347.187tothecontrary,anyperson,
6 includingamember,manager,employeeoragentofalimitedliability
7 company,againstwhomaclaimexistsmaybejoinedasaproperpartyto
8 proceedingsbyoragainstalimitedliabilitycompanytotheextenttheclaim
9 arisesoutofthetransactionoroccurrencethatisthesubjectmatterofthe
10 claimagainstthelimitedliabilitycompany.
11 2.Proceedingsagainstalimitedliabilitycompanyshallbe
12 commencedeitherinthecountywherethecauseofactionaccruedorinany
13 countywheresuchlimitedliabilitycompanyshallhaveorusuallykeepan
14 officeoragentforthetransactionofitsusualandcustomarybusiness,orinthe
15 countyinwhichtheofficeoftheregisteredagentofthelimitedliability
16 companyismaintained.]
[347.071.Anadmissionorrepresentationmadebyanyauthorized
2 personconcerninglimitedliabilitycompanybusinessoraffairswithinthe
HCSSSSCSSBs3&69 117 3 scopeofhisauthorityasconferredbysections347.010to347.187isevidence
4 againstthelimitedliabilitycompany.]
[347.073.Noticetoanyauthorizedpersonofanymatterrelatingtothe
2 businessoraffairsofthelimitedliabilitycompany,andtheknowledgeofthe
3 authorizedpersonactingintheparticularmatter,acquiredwhileanauthorized
4 personorthenpresenttohismind,andtheknowledgeofanyotherauthorized
5 personwhoreasonablycouldandshouldhavecommunicatedittotheacting
6 authorizedperson,operateasnoticetoorknowledgeofthelimitedliability
7 company,exceptinthecaseofafraudonthelimitedliabilitycompany
8 committedbyorwiththeconsentofthatauthorizedperson.]
[347.075.Where,byanywrongfulactoromissionorotheractionable
2 conductofanyauthorizedperson,actingintheordinarycourseofthebusiness
3 ofthelimitedliabilitycompany,orotherwisewithauthority,lossorinjuryis
4 causedtoanyperson,notbeingamemberinthelimitedliabilitycompany,the
5 limitedliabilitycompanyisliableforalldamagespermittedbylawasa
6 consequenceofsuchactionableconduct.]
[347.077.1.Ifanauthorizedperson,actingwithinthescopeofhis
2 apparentauthority,receivesmoneyorpropertyofapersonwhoisnota
3 memberormanagerofthelimitedliabilitycompanyandmisappliesit,the
4 limitedliabilitycompanyisliableforalldamagespermittedbylawasa
5 consequenceofsuchactionableconduct.
6 2.Ifthelimitedliabilitycompany,inthecourseofitsbusiness,
7 receivesmoneyorpropertyofathirdpersonandthemoneyorpropertyso
8 receivedismisappliedbyanymemberormanagerwhileitisinthecustodyof
9 thelimitedliabilitycompany,thelimitedliabilitycompanyisliableforall
10 damagespermittedbylawasaconsequenceofsuchactionableconduct.]
[347.079.1.Thearticlesoforganizationshallprovidehow
2 managementofthelimitedliabilitycompanywillbevestedandwhoshall
3 havetherightandauthoritytomanagetheaffairsofthelimitedliability
4 companyandmakealldecisionswithrespectthereto,subjecttoanyprovisions
5 intheoperatingagreementorsections347.010to347.187restrictingor
6 enlargingthemanagementrightsorresponsibilitiesofoneormorepersonsor
7 classesofpersons.
8 2.Ifthearticlesoforganizationprovidethatmanagementofthe
9 limitedliabilitycompanyshallbevestedinoneormoremanagers,then
10 managementofthelimitedliabilitycompanyshallbevestedinsuchmanager
11 ormanagerswhoshallhavetherightandauthoritytomanagetheaffairsofthe
12 limitedliabilitycompanyandmakedecisionswithrespecttheretototheextent
13 providedintheoperatingagreement,includinganyprovisionstherein
14 restrictingorenlargingthemanagementrightsorresponsibilitiesofoneor
15 morepersonsorclassesofpersons.Themanagersofalimitedliability
16 companyshallbedesignatedintheoperatingagreement,ordesignated,
17 appointedorelectedbythemembersinthemannerprescribedbytheoperating
18 agreement,andmayberemovedorreplacedinthemannerprovidedinthe
HCSSSSCSSBs3&69 118 19 operatingagreement.Managersneednotbemembersofthelimitedliability
20 companyorindividualsunlessotherwiserequiredbytheoperatingagreement.
21 Iftheoperatingagreementdoesnotprovideamannerfordesignating,
22 appointing,electing,removingorreplacingmanagers,then,themanagersofa
23 limitedliabilitycompanyshallbedesignated,appointed,elected,removedor
24 replacedbythevoteofamajoritybynumberofthemembersandunless
25 earlierremovedorresigned,managersshallholdofficeuntiltheirsuccessors
26 havebeendesignated,appointedorelectedandqualified.
27 3.Exceptasprovidedintheoperatingagreement,theaffirmativevote,
28 approvalorconsentofallmembersshallberequiredto:
29 (1)Amendawrittenoperatingagreement;
30 (2)Issueaninterestinthelimitedliabilitycompanytoanypersonand
31 admitsuchpersonasamember;
32 (3)Approveamergerorconsolidationwithanotherperson;
33 (4)Changethestatusofthelimitedliabilitycompanyfromonein
34 whichmanagementisvestedinthememberstooneinwhichmanagementis
35 vestedinoneormoremanagers,orviceversa;
36 (5)Authorizeanytransaction,agreementoractiononbehalfofthe
37 limitedliabilitycompanythatisunrelatedtoitspurposeassetforthinthe
38 articlesoforganization,thatotherwisecontravenestheoperatingagreementor
39 thatisnotwithintheusualcourseofthebusinessofthelimitedliability
40 company;or
41 (6)Determine,modify,compromiseorreleasetheamountand
42 characterofthecontributionswhichamembershallmake,orshallpromiseto
43 make,astheconsiderationfortheissuanceofaninterestinthelimitedliability
44 company.
45 4.Exceptasprovidedintheoperatingagreement,andsubjectto
46 subsection3ofthissection,theaffirmativevote,approvalorconsentofmore
47 thanone-halfbynumberoftheauthorizedpersonsshallberequiredtodecide
48 anymatterconnectedwiththebusinessoraffairsofthelimitedliability
49 company.]
[347.081.1.Thememberormembersofalimitedliabilitycompany
2 shalladoptanoperatingagreementcontainingsuchprovisionsassuchmember
3 ormembersmaydeemappropriate,subjectonlytotheprovisionsofsections
4 347.010to347.187andotherlaw.Theoperatingagreementmaycontainany
5 provision,notinconsistentwithlaw,relatingtotheconductofthebusinessand
6 affairsofthelimitedliabilitycompany,itsrightsandpowers,andtherights,
7 powersanddutiesofitsmembers,managers,agentsoremployees,including:
8 (1)Whetherthemanagementofthelimitedliabilitycompanyshallbe
9 vestedinoneormoremembers,managersorotherpersons,and,ifso,the
10 powersandauthoritytobeexercisedbysuchpersons;
11 (2)Providingforclassesorgroupsofmembershavingvariousrights,
12 powersandduties,andprovidingforthefuturecreationofadditionalclasses
13 orgroupsofmembershavingrelativerights,powersanddutiessuperioror
14 equaltoexistingclassesandgroupsofmembers;
HCSSSSCSSBs3&69 119 15 (3)Theexerciseordivisionofmanagementorvotingrightsamong
16 differentclassesorgroupsofmembers,managersorotherpersonsonaper
17 capitaorotherbasis;
18 (4)Withrespecttoanymatterrequiringavote,approvalorconsentof
19 membersormanagers,provisionsrelatingtonoticeofthetime,placeor
20 purposeofanymeetingatwhichanymatteristobevotedon,waiverofnotice,
21 actionbyconsentwithoutameeting,quorumrequirements,authorizationsby
22 proxy,oranyothermatterwithrespecttotheexerciseofanyvotingor
23 approvalrights;
24 (5)Authorizingallorcertainpersonstoexecutearticles,noticesor
25 documentspermittedorrequiredbysections347.010to347.187;
26 (6)Restrictionsonthetransferofmembers'interestsinthelimited
27 liabilitycompany,andoptionsorrightstoacquireorsellmembers'interestsin
28 thelimitedliabilitycompany;
29 (7)Themannerinwhichincome,gain,deduction,loss,creditand
30 itemsthereofaretobeallocatedtothemembers;and
31 (8)Provisionsrelatingtoanytaxelectionstobemadebythelimited
32 liabilitycompanyandtheauthorizationofpersonstomakesuchelections.
33 2.Itisthepolicyofsections347.010to347.187togivethemaximum
34 effecttotheprincipleoffreedomofcontractandtotheenforceabilityof
35 operatingagreements.
36 3.Theoperatingagreementshallbeenforceableatlaworinequityby
37 anymembertotheextentprovidedinapplicablelaw.
38 4.Thissectionshallnotaffectanyotherwisevalidagreementamong
39 membersofalimitedliabilitycompany.]
[347.083.Unlessotherwiseprovidedintheoperatingagreement,any
2 actionorvotewhichmustbetakenatameetingofthemembersormanagers,
3 asthecasemaybe,maybetakenwithoutameetingifaconsentinwriting,
4 settingforththeactionsotaken,issignedbyallofthepersonsentitledtoactor
5 votewithrespecttosuchmatter.Suchconsentshallhavethesameeffectasan
6 actorvoteofsuchpersons.]
[347.085.1.When,undertheprovisionsofsections347.010to
2 347.187orundertheprovisionsoftheoperatingagreementofalimited
3 liabilitycompany,noticeisrequiredtobegiventoanyperson,awaiverin
4 writingsignedbythatperson,whetherbeforeorafterthetimestatedinit,is
5 equivalenttothegivingofnotice.
6 2.Aperson'sattendanceatameeting:
7 (1)Waivesobjectiontolackofnoticeordefectivenoticeofthe
8 meeting,unlesssuchpersonatthebeginningofthemeetingobjectstoholding
9 themeetingortransactingbusinessatthemeeting;and
10 (2)Waivesobjectiontoconsiderationofaparticularmatteratthe
11 meetingthatisnotwithinthepurposeorpurposesdescribedinthemeeting
12 notice,unlesssuchpersonobjectstoconsideringthematterwhenitis
13 presented.]
HCSSSSCSSBs3&69 120 [347.088.1.Exceptasotherwiseprovidedintheoperatingagreement
2 anauthorizedpersonshalldischargehisorherdutyundersections347.010to
3 347.187andtheoperatingagreementingoodfaith,withthecareacorporate
4 officeroflikepositionwouldexerciseundersimilarcircumstances,inthe
5 mannerareasonablepersonwouldbelievetobeinthebestinterestofthe
6 limitedliabilitycompany,andshallnotbeliableforanysuchactionsotaken
7 oranyfailuretotakesuchaction,ifheorsheperformssuchdutiesin
8 compliancewiththissubsection.
9 2.Totheextentthat,atlaworequity,amemberormanagerorother
10 personhasduties,includingfiduciaryduties,andliabilitiesrelatingtothose
11 dutiestothelimitedliabilitycompanyortoanothermember,manager,orother
12 personthatispartytoorotherwiseboundbyanoperatingagreement:
13 (1)Anysuchmember,manager,orotherpersonactingunderthe
14 operatingagreementshallnotbeliabletothelimitedliabilitycompanyorto
15 anysuchothermember,manager,orotherpersonforthemember's,manager's,
16 orotherperson'sgoodfaithrelianceontheprovisionsoftheoperating
17 agreement;and
18 (2)Themember's,manager'sorotherperson'sdutiesandliabilities
19 maybeexpandedorrestrictedbyprovisionintheoperatingagreement.
20 3.Exceptasotherwiseprovidedintheoperatingagreement,every
21 memberormanager,ifany,shallaccounttothelimitedliabilitycompanyand
22 holdastrusteeforitanyprofitorbenefitderivedbysuchpersonwithoutthe
23 informedconsentofmorethanone-halfbynumberofdisinterestedmanagers
24 ormembersfromanytransactionconnectedwiththeconductofthebusiness
25 andaffairsorthewindingupofthelimitedliabilitycompany,orfromany
26 personalusebysuchpersonofthepropertyofthelimitedliabilitycompany,
27 includingconfidentialorproprietaryinformationofthelimitedliability
28 companyorothermattersentrustedtohimasaresultofhisstatusasmanager
29 ormember.
30 4.Exceptasprovidedinsubsection2ofthissectionortheoperating
31 agreement,onewhoisamemberofalimitedliabilitycompanyinwhich
32 managementisvestedinoneormoremanagersandwhoisnotamanagershall
33 havenodutiestothelimitedliabilitycompanyortotheothermemberssolely
34 byreasonofactinginhiscapacityasamember.]
[347.090.1.Unlesshehasknowledgeconcerningthematterin
2 questionthatmakessuchrelianceunwarranted,indischarginghisdutiesunder
3 theoperatingagreement,anauthorizedpersonisentitledtorelyon
4 information,opinions,reportsorstatements,includingfinancialstatements
5 andotherfinancialdata,ifpreparedorpresentedby:
6 (1)Oneormoreemployeesofthelimitedliabilitycompanywhom
7 suchauthorizedpersonreasonablybelievestobereliableandcompetentinthe
8 matterspresented;
9 (2)Legalcounsel,accountants,orotherpersonsastomatterssuch
10 authorizedpersonreasonablybelievesarewithinsuchperson'sprofessionalor
11 expertcompetence;or
HCSSSSCSSBs3&69 121 12 (3)Acommitteeofmanagersormembersofwhichheisnota
13 constituent,ifsuchauthorizedpersonreasonablybelievesthatthecommittee
14 meritsconfidence.
15 2.Anauthorizedpersonisnotliableforanyactiontakenwithrespect
16 tohisdutiesundertheoperatingagreement,oranyfailuretotakesuchaction,
17 ifheperformssuchdutiesincompliancewiththissection.]
[347.091.1.Thelimitedliabilitycompanyshallkeepatitsprincipal
2 placeofbusiness,thefollowing:
3 (1)Acurrentandapastlist,settingforththefullnameandlastknown
4 mailingaddressofeachmemberandmanager,ifany,setforthinalphabetical
5 order;
6 (2)Acopyofthearticlesoforganizationandallarticlesofamendment
7 thereto,togetherwithexecutedcopiesofanypowersofattorneypursuantto
8 whichanyarticleshavebeenexecuted;
9 (3)Copiesofthelimitedliabilitycompany'sfederal,stateandlocal
10 incometaxreturnsandreports,ifany,forthethreemostrecentyearsor,if
11 suchreturnsandreportswerenotpreparedforanyreason,copiesofthe
12 informationandrecordsprovidedto,orwhichshouldhavebeenprovidedto,
13 thememberstoenablethemtopreparetheirfederal,stateandlocaltaxreturns
14 forsuchperiod;
15 (4)Copiesofanyeffectivewrittenoperatingagreements,andall
16 amendmentsthereto,andcopiesofanywrittenoperatingagreementsnolonger
17 ineffect;
18 (5)Copiesofanyfinancialstatementsofthelimitedliabilitycompany
19 forthethreemostrecentyears;
20 (6)Unlesscontainedinawrittenoperatingagreement,awriting
21 settingout:
22 (a)Theamountofcashandastatementoftheagreedvalueofother
23 propertyorservicescontributedbyeachmemberandthetimesatwhichor
24 eventsuponthehappeningofwhichanyadditionalcontributionsagreedtobe
25 madebyeachmemberaretobemade;
26 (b)Informationthatwouldenableamembertodeterminetherelative
27 votingrightsofthemembersonaparticularmatterifsuchvotingrightsare
28 otherthanonapercapitabasis;and
29 (c)Anyeventsuponthehappeningofwhichthelimitedliability
30 companyistobedissolvedanditsaffairswoundup;
31 (7)Copiesofanywrittenpromisebyamembertomakeacontribution
32 tothelimitedliabilitycompany;
33 (8)Copiesofanywrittenconsentsbythememberstotheadmissionof
34 anypersonasamemberofthelimitedliabilitycompany;
35 (9)Copiesofanywrittenconsentsbythememberstocontinuethe
36 limitedliabilitycompanyuponaneventofwithdrawalofanymember;
37 (10)Copiesofanyotherinstrumentsordocumentsreflectingmatters
38 requiredtobeinwritingpursuanttotheoperatingagreement.
39 2.Eachmembermay:
HCSSSSCSSBs3&69 122 40 (1)Inspectandcopyduringordinarybusinesshours,atthereasonable
41 requestandattheexpenseofsuchmember,anyofthelimitedliability
42 companyrecordsrequiredtobekeptbysubsection1ofthissection;
43 (2)Fromtimetotimeuponreasonabledemand,obtaintrueandfull
44 informationregardingthestateofthebusinessandfinancialconditionofthe
45 limitedliabilitycompany;
46 (3)Haveanaccountingoftheaffairsofthelimitedliabilitycompany
47 whenevercircumstancesrenderitjustandreasonable.
48 3.Thesecretarymayrequestinwritingthatthelimitedliability
49 companyforwardtohimacompletecopyofthecurrent,past,orboth,limited
50 liabilitycompanylistskeptpursuanttosubdivision(1)ofsubsection1ofthis
51 sectionwithoutcosttothesecretary.Anyauthorizedpersonwhohas
52 possessionorcontrolofsuchlistandwhofailstodeliverthelisttothe
53 secretarywithintwentydaysafterreceivingwrittendemandthereformaybe
54 individuallysubjecttoacivilpenaltyintheamountoffiftydollarsperdayfor
55 eachdaythelisthasnotbeendeliveredtothesecretary,butnottoexceedten
56 thousanddollars,suchpenaltytobeassessedandcollectedbythesecretary,
57 andprosecutedcriminallywithanyresultingconvictionbeingaclassA
58 misdemeanor.
59 4.Failureofthelimitedliabilitycompanytokeepanyoftherecordsor
60 informationrequiredpursuanttothissectionshallnotbegroundsforimposing
61 liabilityonanypersonforthedebtsandobligationsofthelimitedliability
62 company.]
[347.093.Exceptasprovidedintheoperatingagreement,amemberor
2 managermaylendmoneytoandtransactbusinesswiththelimitedliability
3 companyand,subjecttootherapplicablelaw,hasthesamerightsand
4 obligationswithrespecttheretoasapersonwhoisnotamemberormanager.]
[347.095.Nothingcontainedinsections347.079to347.090shallhave
2 anyapplicationtoclaimsamongmembers,managers,orthelimitedliability
3 companyontheonehand,andpersonswhoassertclaimsagainstamember,
4 manageroralimitedliabilitycompanywhichdonotarisefromtheclaimant's
5 statusasamemberormanagerofthatlimitedliabilitycompany.]
[347.097.Aninterestinalimitedliabilitycompanymaybeissuedfor
2 theconsiderationofacontributionoranenforceablepromisetomakea
3 contributioninthefuture,orboth.]
[347.099.1.Nopromisebyamembertomakeacontributiontothe
2 limitedliabilitycompanyisenforceableunlesssetoutinawritingsignedby
3 themember.
4 2.Exceptasprovidedintheoperatingagreement,amemberor,inthe
5 caseofadeceasedmember,thatmember'spersonalrepresentative,isobligated
6 tothelimitedliabilitycompanytoperformanypromisetomakea
7 contribution,includingapromisetorenderservices,evenifthememberis
8 unabletoperformbecauseofdeath,disabilityoranyotherreason.Ifa
9 memberdoesnotmaketherequiredcontribution,thememberisobligated,at
HCSSSSCSSBs3&69 123 10 theoptionofthelimitedliabilitycompany,tocontributecashequaltothe
11 value,asstatedintheoperatingagreementortherecordsrequiredtobekept
12 pursuanttosection347.091,ofthatportionofthepromisedcontributionthat
13 hasnotbeenmade.Theforegoingoptionshallbeinadditionto,andnotin
14 lieuof,anyotherrights,includingtherighttospecificperformance,thatthe
15 limitedliabilitycompanyorothermembersmayhaveagainstsuchmember
16 undertheoperatingagreementorapplicablelaw.
17 3.Amember'sobligationtomakeacontributionshallnotbe
18 enforceablebyathird-partycreditorofthelimitedliabilitycompanyorany
19 othermemberunlessthemembersoobligatedtomakesuchcontributionhas
20 specificallyagreedorconsentedtosuchenforcementorthelimitedliability
21 companyhasassignedsuchmember'sobligationtothecreditororcreditors
22 seekingtoenforcetheobligation.
23 4.Uponthefailureofamembertomakeapromisedcontribution
24 whendue,thelimitedliabilitycompanymayenforcesuchmember'sobligation
25 byappropriatelegalactionfordamagesforbreachofcontractorforspecific
26 performance,andthelimitedliabilitycompanyandothermembersmay
27 exerciseandenforcesuchadditionalrightsandremediesasmaybeprovided
28 undertheoperatingagreementintheeventofanysuchfailure,subjecttothe
29 applicablelawregardingtheenforcementofcontracts.]
[347.101.1.Exceptasprovidedinsection347.109,alimitedliability
2 companyshallmakedistributionsofcashorotherpropertytoitsmembers
3 beforethedissolutionandwindingupofthelimitedliabilitycompanyatthe
4 timesoruponthehappeningoftheeventsspecifiedintheoperatingagreement
5 or,iftheoperatingagreementdoesnotsospecify,thenatsuchtimesasmaybe
6 approvedbyamajorityoftheauthorizedpersons.
7 2.Distributionsofcashorotherpropertytomembersbyalimited
8 liabilitycompanybeforethedissolutionandwindingupofalimitedliability
9 companyshallbesharedamongthemembers,andamongclassesofmembers,
10 inthemannerandintherelativeprioritiesprovidedintheoperating
11 agreement.Iftheoperatingagreementdoesnotsoprovide,distributionsshall
12 besharedamongthemembersinthefollowingmanner:
13 (1)First,distributionsshallbesharedamongthemembersin
14 proportiontotheamountofcashcontributionsandthevalueofother
15 contributions,asstatedintheoperatingagreementortherecordsrequiredtobe
16 keptpursuanttosection347.091,madebythem,respectively,untileach
17 memberhasbeenreturnedhiscontributions;and
18 (2)Second,distributionsshallbesharedbythemembersequally.]
[347.103.1.Ifalimitedliabilitycompanydissolvesandwindsupits
2 businessandaffairsasaresultofaneventofwithdrawalofamember,then,
3 exceptasotherwiseprovidedintheoperatingagreement,suchmemberandhis
4 personalrepresentatives,successorsandassignsshallhavetherightsofan
5 assigneeofthewithdrawnmember'sinterestinthelimitedliabilitycompanyto
6 receivedistributionswithrespecttosuchinterestduringanduponcompletion
7 ofwindingup,butthelimitedliabilitycompanymay,inadditiontoany
8 remediesotherwiseavailableunderapplicablelaw,reducetheamounts
HCSSSSCSSBs3&69 124 9 distributablewithrespecttosuchinterestbyanydamagesrecoverableagainst
10 thewithdrawnmemberifsucheventofwithdrawalviolatedtheoperating
11 agreement.
12 2.Ifthebusinessofalimitedliabilitycompanyiscontinuedfollowing
13 aneventofwithdrawalofamember,then,exceptasotherwiseprovidedinthe
14 operatingagreement,suchmembershallhavetherightsofanassigneeofthe
15 withdrawnmember'sinterestinthelimitedliabilitycompany.Thewithdrawn
16 membershallbeentitledtoreceiveanydistributionstowhichheisentitled
17 uponsucheventofwithdrawalundertheprovisionsoftheoperating
18 agreement.Iftheoperatingagreementdoesnotprovidefortheamountof
19 oramethodfordeterminingthedistribution,ifany,towhichawithdrawn
20 memberisentitled,thewithdrawnmembershallbeentitled,exceptinthecase
21 ofaneventofwithdrawalpursuanttosubsection2ofsection347.123,to
22 receivefromthelimitedliabilitycompany,upondemandforsuchdistribution
23 madebyoronbehalfofsuchwithdrawnmemberwithinonehundredeighty
24 daysaftersucheventofwithdrawalandsubjecttothelimitationsetforthin
25 section347.109,thefairvalueofsuchwithdrawnmember'sinterestinthe
26 limitedliabilitycompanyasofthedateofwithdrawalbaseduponsuch
27 withdrawnmember'srighttoshareindistributionsfromthelimitedliability
28 companyasanongoingoperation.Ifsuchdemandisnotmadeonatimely
29 basis,thelimitedliabilitycompanymay,exceptasprovidedintheoperating
30 agreement,purchasethewithdrawnmember'sinterestinthelimitedliability
31 company,forthefairvalueofsuchwithdrawnmember'sinterestinthelimited
32 liabilitycompanydeterminedasofthedateofwithdrawalbaseduponsuch
33 withdrawnmember'srighttoshareindistributionsfromthelimitedliability
34 companyasanongoingoperation,atanytime,uponthirtydays'writtennotice
35 fromthelimitedliabilitycompanytothewithdrawnmember,suchwithdrawn
36 member'spersonalrepresentatives,successorsorassigns.Inanyevent,ifsuch
37 eventofwithdrawalviolatedtheoperatingagreement:
38 (1)Thegoodwillofthelimitedliabilitycompany'sbusinessshallbe
39 excludedindeterminingthefairvalueofthewithdrawnmember'sinterest;
40 (2)Inadditiontoanyremediesotherwiseavailableunderapplicable
41 law,theamountpayabletothewithdrawnmembershallbereducedbyany
42 damagessufferedbythelimitedliabilitycompanyoritsmembersasaresultof
43 thewithdrawnmember'sbreachoftheoperatingagreement;and
44 (3)Thelimitedliabilitycompanymaydeferpaymentoftheamount
45 thewithdrawnmemberisentitledtoreceiveforsuchperiod,andshallsecure
46 thesamebysuchcollateral,asmaybeapprovedbyacourt,inordertoprevent
47 unreasonablehardshiptothelimitedliabilitycompany.
48 3.Theprovisionsofthissectionapplytoalllimitedliability
49 companiesinexistenceontheeffectivedateofthissection,unlesssuchlimited
50 liabilitycompanyelectsotherwisebythewrittenagreementofallits
51 members.]
[347.105.Exceptasotherwiseprovidedintheoperatingagreement,a
2 member,regardlessofthenatureofhiscontribution,hasnorighttodemand
3 andreceiveanydistributionfromalimitedliabilitycompanyinanyformother
4 thancash.Exceptasprovidedintheoperatingagreement,amembermaynot
HCSSSSCSSBs3&69 125 5 becompelledtoacceptadistributionofanypropertyotherthancashfromthe
6 limitedliabilitycompanyunlessthemembersreceiveundividedownership
7 intereststhereinthatareinthesameproportionsastheywouldhavesharedin
8 acashdistributionequaltothevalueofsuchpropertyatthetimeof
9 distribution.]
[347.107.Atthetimeamemberbecomesentitledtoreceivea
2 distributioninaccordancewithsections347.010to347.187andtheoperating
3 agreement,thatmemberhasthestatusof,andisentitledto,allremedies
4 availabletoacreditorofthelimitedliabilitycompanywithrespecttothe
5 distribution.]
[347.109.1.Alimitedliabilitycompanyshallnotmakeany
2 distributiontooneormorememberswithrespecttotheirinterestsinthe
3 limitedliabilitycompany,andnomembershallbeentitledtoreceiveanysuch
4 distribution,totheextentthat,aftergivingeffecttothedistribution:
5 (1)Thelimitedliabilitycompanywouldnotbeabletopayitsdebtsas
6 theybecamedueintheusualcourseofbusiness;or
7 (2)Thelimitedliabilitycompany'stotalassetswouldbelessthanthe
8 sumofitstotalliabilitiestowhichsuchassetsaresubjectplus,unlessthe
9 operatingagreementprovidesotherwise,theamountthatwouldbeneeded,if
10 thelimitedliabilitycompanyweretobedissolvedatthetimeofthe
11 distribution,tosatisfythepreferentialrightsupondissolutionofmembers
12 whoserightstoreceivedistributionsaresuperiorundertheoperating
13 agreementtotherightsofthemembersreceivingthedistribution,except
14 that,forpurposesofmakingsuchdetermination,liabilitiestomembersor
15 formermembersintheirstatusassuchshallbeexcluded.
16 2.Thelimitedliabilitycompanymaybaseadeterminationthatits
17 distributionisnotprohibitedundersubsection1ofthissectionon:
18 (1)Financialstatementspreparedonthebasisofgenerallyaccepted
19 accountingprinciplesandpracticesthatarereasonableunderthe
20 circumstances;or
21 (2)Afairvaluationorothermethodthatisreasonableunderthe
22 circumstances.
23 3.Theeffectivedistributionundersubsection1ofthissectionis
24 measuredasof:
25 (1)Thedatethedistributionisauthorized,ifthedistributioninfact
26 occurswithinonehundredtwentydaysafterthedateofauthorization;or
27 (2)Thedatethepaymentismade,ifitoccursmorethanonehundred
28 twentydaysafterthedateofauthorization.
29 4.Ifamembershallreceiveanydistributionwithrespecttohisinterest
30 inalimitedliabilitycompanyinviolationofthissectionortheoperating
31 agreement,suchmemberandthepersonorpersonswhoarevestedwith
32 authorityundertheoperatingagreementtomakedistributionstothemembers
33 andwhoknowinglyauthorizedorpermittedsuchdistributiontothemember
34 shallbeliable,foraperiodofthreeyearsfollowingthedateofthedistribution,
35 tothelimitedliabilitycompanyforthevalueofthewrongfuldistribution,but
36 onlytotheextentnecessarytodischargethelimitedliabilitycompany's
HCSSSSCSSBs3&69 126 37 liabilitiesincurredpriortothedateofsuchdistribution.Ifmorethanonesuch
38 personwhoauthorizedorpermittedsuchwrongfuldistributionisheldliable
39 thereforpursuanttothissubsection,eachsuchpersonshallbeentitledto
40 contributionfromtheotherpersonswhoareheldsoliablethereforpursuantto
41 thissubsection.]
[347.111.Theprofitsorlossesofalimitedliabilitycompanyshallbe
2 allocatedamongthemembers,andamongclassesofmembers,inthemanner
3 providedintheoperatingagreement.Iftheoperatingagreementdoesnotso
4 provide,profitsshallbeallocatedamongthemembersintheamountand
5 mannerofanylossespreviouslyallocatedtothememberstotheextentnot
6 previouslyoffsetbyallocationsofprofitandthenaccordingtothemannerin
7 whichtheyshareindistributionswhichexceedtherepaymentoftheir
8 contributions,andlossesshallbeallocatedamongthemembersaccordingto
9 therespectivecontributionswhichtheyhavemadeandpromisedtomakein
10 thefuture.]
[347.113.1.Apersonisamemberatthetimethelimitedliability
2 companyisformedifsuchpersonisidentifiedasamemberinandsigns,in
3 personorbyanattorneyinfact,orotherwisebecomesapartytotheoperating
4 agreement.
5 2.Apersonmaybeadmittedasanadditionalmemberbysigning,in
6 personorbyanattorneyinfact,orotherwisebecomingapartytotheoperating
7 agreementandbycomplyingwiththeapplicabletermsandconditionsofthe
8 operatingagreementor,iftheoperatingagreementdoesnotsoprovide,upon
9 thewrittenconsentofallmembers;orinthecaseofanassigneeoftheinterest
10 ofamemberwhohasthepower,asprovidedintheoperatingagreement,to
11 granttheassigneetherighttobecomeamember,upontheexerciseofthat
12 powerincompliancewithanyconditionslimitingtheexercisethereof.]
[347.115.1.Theinterestofamemberinalimitedliabilitycompanyis
2 personalpropertyand,exceptasprovidedintheoperatingagreement,maybe
3 assignedinwholeorinpart.Anassignmentofaninterestdoesnotentitlethe
4 assigneetoparticipateinthemanagementofthebusinessandaffairsofthe
5 limitedliabilitycompanyortobecomeortoexercisetherightsofamember,
6 exceptasprovidedinsection347.113.Anassigneethathasnotbecomea
7 membershallonlybeentitledtoreceive,totheextentassigned,theshareof
8 distributionsandprofits,includingdistributionsrepresentingthereturnof
9 contributions,towhichtheassignorwouldotherwisebeentitledwithrespect
10 totheassignedinterest.Unlessotherwiseprovidedintheoperating
11 agreement,amembershallnotceasetobeamemberasaresultofthe
12 pledge,encumbrancingorthegrantingofasecurityinterestintheinterestof
13 suchmemberinthelimitedliabilitycompany.
14 2.Anassigneewhohasbecomeamemberhas,totheextentassigned,
15 therightsandpowers,andissubjecttotherestrictionsandliabilities,ofa
16 memberunderthearticlesoforganization,theoperatingagreementand
17 sections347.010to347.187.Anassigneewhobecomesamemberisliablefor
18 anyobligationsofhisassignortomakecontributions.
HCSSSSCSSBs3&69 127 19 3.Unlessotherwiseprovidedintheoperatingagreement,ifan
20 assigneeofaninterestinalimitedliabilitycompanybecomesamember,the
21 assignorisnotreleasedfromhisliabilitytothelimitedliabilitycompanyunder
22 section347.099orsection347.109withoutthewrittenconsentofall
23 members.]
[347.117.1.Unlessotherwiseprovidedintheoperatingagreement,if
2 amemberwhoisanindividualdiesoracourtofcompetentjurisdictionjudges
3 themembertobeincompetenttomanagehisorherpersonorproperty,the
4 member'sexecutor,administrator,guardian,conservator,orotherlegal
5 representativeshallhaveanypowerthememberhadtogivehisassignee
6 therighttobecomeamemberandalloftherightsofanassigneeofthe
7 member'sinterest.
8 2.Ifamemberisacorporation,partnership,limitedliabilitycompany,
9 trustorotherentityandisdissolvedorterminated,itslegalrepresentativeor
10 successorshallhaveanypowerthememberhadtogivehisassigneetheright
11 tobecomeamemberandalloftherightsofanassigneeofthemember's
12 interest.]
[347.119.Onapplicationtoacourtofcompetentjurisdictionbyany
2 judgmentcreditorofamember,thecourtmaychargethemember'sinterestin
3 thelimitedliabilitycompanywithpaymentoftheunsatisfiedamountofthe
4 judgmentwithinterest.Totheextentsocharged,thejudgmentcreditorhas
5 onlytherightsofanassigneeofthemember'sinterest.Sections347.010to
6 347.187donotdepriveanymemberofthebenefitofanyexemptionlaws
7 applicabletohisinterestinthelimitedliabilitycompany.]
[347.121.1.Amembermaywithdrawfromalimitedliability
2 companyatthetimeorupontheeventsspecifiedinwritingintheoperating
3 agreement,oratanytimeupongivingninetydays'priorwrittennoticeof
4 withdrawaltotheothermembersbut,ifthewithdrawalviolatesawritten
5 provisionintheoperatingagreement,thelimitedliabilitycompanymay
6 recoverfromthewithdrawingmemberdamagesforbreachoftheoperating
7 agreementandoffsetthedamagesagainsttheamountotherwisedistributable
8 tothewithdrawingmemberinaccordancewithsection347.103.
9 2.Exceptasotherwiseprovidedintheoperatingagreement,uponthe
10 occurrenceofaneventofwithdrawalofamember,thewithdrawnmember
11 shallhavenofurtherdutytothelimitedliabilitycompanyexceptfortheduty
12 toaccounttothelimitedliabilitycompanyforanyprofitorbenefitderivedby
13 suchpersonwithouttheinformedconsentofmorethanone-halfbynumberof
14 disinterestedmanagersormembersfromanytransactionconnectedwiththe
15 conductofthebusinessandaffairsofthelimitedliabilitycompanypriortothe
16 eventofwithdrawal,orfromanypersonalusebysuchpersonoftheproperty
17 ofthelimitedliabilitycompany,includingconfidentialorproprietary
18 informationofthelimitedliabilitycompanyorothermattersentrustedto
19 suchpersonasaresultofsuchmember'sstatusasamanagerormember.
20 3.Exceptasotherwiseprovidedintheoperatingagreement,uponthe
21 withdrawalofamember,thewithdrawnmembershallhavenofurtherrightto
HCSSSSCSSBs3&69 128 22 participateinthemanagementandaffairsofthelimitedliabilitycompanyand
23 shallhaveonlytherightsofanassigneeofthewithdrawnmember'sinterestin
24 thelimitedliabilitycompany.]
[347.123.Apersonceasestobeamemberofalimitedliability
2 companyuponthehappeningofanyofthefollowingeventsofwithdrawal:
3 (1)Thememberwithdrawsfromthelimitedliabilitycompanyas
4 providedinsection347.121;
5 (2)Unlessotherwiseprovidedintheoperatingagreementorbythe
6 specificwrittenconsentofallmembersatthetime,thememberassignsallof
7 hisinterestinthelimitedliabilitycompany;
8 (3)Thememberisexpelledasamemberinaccordancewiththe
9 operatingagreement;
10 (4)Unlessotherwiseprovidedintheoperatingagreementorbythe
11 specificwrittenconsentofallmembersatthetime,themember:
12 (a)Makesanassignmentforthebenefitofcreditors;
13 (b)Isthesubjectofabankruptcy;
14 (c)Filesapetitionoranswerseekingforhimselfanyreorganization,
15 arrangement,composition,readjustment,liquidation,orsimilarreliefunder
16 anystatute,laworregulationorfilesananswerorotherpleadingadmittingor
17 failingtocontestthematerialallegationsofapetitionfiledagainsthimina
18 proceedingofsuchnature;or
19 (d)Seeks,consentstooracquiescesintheappointmentofatrustee,
20 receiverorliquidatorofthememberorofalloranysubstantialpartofhis
21 property;
22 (5)Unlessotherwiseprovidedintheoperatingagreementorbythe
23 specificwrittenconsentofallmembersatthetime,onehundredtwentydays
24 afterthecommencementofanyproceedingagainstthememberseeking
25 reorganization,arrangement,composition,readjustment,liquidation,
26 dissolutionorsimilarreliefunderanystatute,laworregulation,the
27 proceedinghasnotbeendismissed,orifwithinninetydaysafterthe
28 appointmentwithouthisconsentoracquiescenceofatrustee,receiveror
29 liquidatorofthememberorofalloranysubstantialpartofhisproperty,the
30 appointmentisnotvacatedorstayed,orwithinninetydaysaftertheexpiration
31 ofanysuchstay,theappointmentisnotvacated;
32 (6)Inthecaseofamemberwhoisanaturalperson:
33 (a)Hisdeath;or
34 (b)Theentrybyacourtofcompetentjurisdictionadjudicatinghim
35 incompetenttomanagehispersonorhisestate;
36 (7)Inthecaseofamemberthatisatrust,theterminationofthetrust
37 oradistributionofitsentireinterestinthelimitedliabilitycompanybutnot
38 merelythesubstitutionofanewtrustee;
39 (8)Inthecaseofamemberthatisageneralorlimitedpartnership,the
40 dissolutionandcommencementofwindingupofthepartnershipora
41 distributionofitsentireinterestinthelimitedliabilitycompany;
42 (9)Inthecaseofamemberthatisacorporation,thefilingofarticles
43 ofdissolution,ortheirequivalent,forthecorporationorrevocationofits
44 charteroradistributionofitsentireinterestinthelimitedliabilitycompany;
HCSSSSCSSBs3&69 129 45 (10)Inthecaseofamemberthatisanestate,thedistributionbythe
46 fiduciaryoftheestate'sentireinterestinthelimitedliabilitycompany;or
47 (11)Inthecaseofamemberthatisalimitedliabilitycompany,the
48 filingofarticlesofdissolutionortermination,ortheirequivalent,forthe
49 limitedliabilitycompanyoradistributionofitsentireinterestinthelimited
50 liabilitycompany.]
[347.125.1.Ageneralorlimitedpartnershipformedunderthelawsof
2 thisstatemayconverttoalimitedliabilitycompanybyfilingarticlesof
3 organizationthatmeettherequirementsofsection347.039andincludethe
4 following:
5 (1)Thenameoftheformergeneralpartnershiporlimitedpartnership;
6 (2)Inthecaseofalimitedpartnership,thedateandplaceoffilingof
7 theinitialcertificateoflimitedpartnershipoftheformerlimitedpartnership
8 andanyapplicationforregistrationasalimitedliabilitylimitedpartnership;
9 and
10 (3)Inthecaseofageneralpartnership,thedateoffilingofany
11 fictitiousnameregistrationoftheformergeneralpartnershiporany
12 applicationforregistrationasalimitedliabilitypartnership.
13 2.Nothinginthissectionshallbeconstruedtorequire,ordeemedto
14 constitute,adissolutionofthegeneralpartnershiporlimitedpartnershipprior
15 toitsconversiontoalimitedliabilitycompanyaspermittedinthissection.
16 3.Whenageneralpartnershiporlimitedpartnershipisconvertedtoa
17 limitedliabilitycompanypursuanttothissection,thetitletoanyrealor
18 personalpropertyoranyinterestthereinandallrights,privileges,powers,
19 debts,causesofactionvestedintheformerpartnershipshallbedeemedtobe
20 transferredtoandvestedinsuchlimitedliabilitycompanywithoutfurtheract
21 ordeed.Confirmatorydeeds,assignmentsorsimilarinstrumentstoevidence
22 thetransfermaybeexecutedanddeliveredatanytimeinthenameofthe
23 partnershiptothelimitedliabilitycompany.
24 4.Whenageneralpartnershiporlimitedpartnershipisconvertedtoa
25 limitedliabilitycompanypursuanttothissection,allduties,debts,liens,
26 liabilitiesandrightsofcreditorsasagainsttheformerpartnershipandits
27 partnersshallcontinuewithoutimpairmentandshallattachtothelimited
28 liabilitycompany.Anyexistingclaim,actionorproceedingpendingbyor
29 againstthepartnershiporitspartnersmaybeprosecutedtojudgmentasifthe
30 conversionhadnottakenplace,oragainstthelimitedliabilitycompanytothe
31 sameextentasifsuchduties,debts,liensandliabilitieshadbeenincurredor
32 contractedbyit.Ajudgmentagainstthepartnershipconstitutesalienagainst
33 thelimitedliabilitycompanyandmaybeenforcedagainstthelimitedliability
34 company.
35 5.Inthecaseofaconversionofageneralorlimitedpartnershiptoa
36 limitedliabilitycompanypursuanttothissection,thefictitiousname
37 registration,certificateoflimitedpartnershipofthegeneralorlimited
38 partnershipandanyapplicationforregistrationasalimitedliability
39 partnershiporlimitedliabilitylimitedpartnershipshallbedeemedcancelled
40 bythefilingofthearticlesoforganizationbythesecretaryofstatepursuantto
41 thissection.]
HCSSSSCSSBs3&69 130 [347.127.1.Adomesticlimitedliabilitycompanymaymergeor
2 consolidatewithorintooneormorelimitedliabilitycompaniesformedunder
3 thelawsofthisstateoranyotherjurisdiction,andsuchdomesticlimited
4 liabilitycompanyorforeignlimitedliabilitycompanybyagreementbetween
5 thepartiestothemergerorconsolidation,shallprovideforthesurviving
6 entity,asprovidedinsections347.127to347.135.
7 2.Adomesticlimitedliabilitycompanymaymergeorconsolidate
8 withoneormoregeneralpartnershipsordomesticorforeignlimited
9 partnerships,limitedliabilitycompanies,trusts,businesstrusts,corporations,
10 realestateinvestmenttrustsandotherassociationsorbusinessentitiesatleast
11 oneofwhichisnotalimitedliability,asprovidedinsections347.700to
12 347.735.]
[347.128.Eachlimitedliabilitycompanypartytoamergeror
2 consolidationasdescribedinsubsection1ofsection347.121shallenterintoa
3 writtenagreementofmergerorconsolidation.Theagreementofmergeror
4 consolidationshallsetforth:
5 (1)Thenameandstateorcountryoforganizationofeachofthe
6 limitedliabilitycompaniespartytothemergerorconsolidationandthename
7 ofthesurvivinglimitedliabilitycompanyintowhicheachotherlimited
8 liabilitycompanyproposestomergeorthenewlimitedliabilitycompanyinto
9 whicheachofthelimitedliabilitycompaniesproposetoconsolidate;
10 (2)Thetermsandconditionsofthemergerorconsolidation;
11 (3)Themannerandbasisofconvertingtheinterestsineachlimited
12 liabilitycompanypartytothemergerorconsolidationintointerestsofthe
13 survivingornewlimitedliabilitycompanyorofanyotherperson,or,inwhole
14 orinpart,intocashorotherproperty;
15 (4)Inthecaseofamerger,suchamendmentstotheorganizational
16 documentsofthesurvivinglimitedliabilitycompany,asaredesiredtobe
17 effectedbythemerger,orastatementthatnosuchamendmentsaredesired;
18 (5)Inthecaseofaconsolidation,allstatementsrequiredtobesetforth
19 inthearticlesoforganizationofthenewlimitedliabilitycompany;and
20 (6)Suchotherprovisionsrelatingtotheproposedmergeror
21 consolidationasaredeemednecessaryordesirablebythepartiestothe
22 mergerorconsolidation.]
[347.129.1.Thesurvivinglimitedliabilitycompanyinthemergeror
2 thenewlimitedliabilitycompanyintheconsolidationshallfileanoticeofthe
3 mergerorconsolidationwiththesecretarywhichshallsetforth:
4 (1)Thenameofeachpartytothemergerorconsolidation;
5 (2)Theeffectivedateofthemergerorconsolidationwhichmaynot
6 exceedninetydaysafterthefilingofthenoticeofmergerorconsolidation;
7 (3)Thenameofthesurvivinglimitedliabilitycompanyinthemerger
8 orthenewlimitedliabilitycompanyintheconsolidationandthestateofits
9 formation;
HCSSSSCSSBs3&69 131 10 (4)Astatementthatthemergerorconsolidationwasauthorizedand
11 approvedbythemembersofeachpartytothemergerorconsolidationin
12 accordancewiththelawsofthejurisdictionwhereitwasorganized;
13 (5)Ifapplicable,theaddressoftheregisteredofficeandthenameof
14 theregisteredagentatsuchofficeforthesurvivingornewlimitedliability
15 company;
16 (6)Inthecaseofamergerinwhichadomesticlimitedliability
17 companyisthesurvivinglimitedliabilitycompany,suchamendmentstothe
18 articlesoforganizationofthesurvivinglimitedliabilitycompanyasare
19 desiredtobeeffectedbythemerger,or,ifnosuchamendmentsorchangesare
20 desired,astatementthatthearticlesoforganizationofthesurvivinglimited
21 liabilitycompanyshallnotbeamendedasaresultofthemerger;
22 (7)Inthecaseofaconsolidationinwhichadomesticlimitedliability
23 companyisthecontinuinglimitedliabilitycompany,thearticlesof
24 organizationofthenewdomesticlimitedliabilitycompanyshallbesetforth
25 inanattachmenttothenoticeofconsolidation;
26 (8)Astatementthattheexecutedagreementofmergeror
27 consolidationisonfileattheprincipalplaceofbusinessofthesurvivingor
28 newlimitedliabilitycompany,statingtheaddressoftheprincipalplaceof
29 business;and
30 (9)Astatementthatacopyoftheagreementofmergeror
31 consolidationwillbefurnishedbythesurvivingornewentity,onrequest
32 andwithoutcost,toanymemberofanyentitythatisapartytothemergeror
33 consolidation.
34 2.Thenoticeofthemergerorconsolidationshallbeexecutedbyat
35 leastoneauthorizedpersonofthedomesticlimitedliabilitycompanyandone
36 authorizedagent,oritsequivalent,fortheotherpartytothemergeror
37 consolidationwhoisdulyauthorizedtoexecutesuchnotice.
38 3.Intheeventthemergerorconsolidationisnotconsummatedforany
39 reason,thedomesticlimitedliabilitycompanyshallpromptlyfileanoticeof
40 theabandonmentofthemergerorconsolidationwiththesecretarywhichshall
41 setforth:
42 (1)Thenameofeachpartytothemergerorconsolidation;
43 (2)Thedatethenoticeofmergerorconsolidationwasfiledwiththe
44 secretary;and
45 (3)Astatementthatthemergerorconsolidationwasnotconsummated
46 andhasbeenabandoned.
47 4.Ifthesurvivingornewlimitedliabilitycompanyisaforeignlimited
48 liabilitycompany,theeffectivedateofsuchmergerorconsolidationshallbe
49 thedateonwhichthesamebecomeseffectiveinthestateofdomicileofsuch
50 survivingornewlimitedliabilitycompany;providedadocumentfromthe
51 stateofdomicileofthesurvivinglimitedliabilitycompanyinthecaseof
52 mergerorthecaseofconsolidationcertifyingthatthemergerorconsolidation
53 hasbecomeeffectiveinsuchstateshallbearequirementforthemergeror
54 consolidationbecomingeffectiveinthisstate.]
[347.131.Amergerorconsolidationwithadomesticsurvivorornew
2 domesticlimitedliabilitycompanyiseffectiveasofthelaterof:
HCSSSSCSSBs3&69 132 3 (1)Thedatethesecretaryfilesthenoticeofmergerorconsolidation
4 forrecord;or
5 (2)Thedatesetforthinthenoticeofmergerorconsolidation,notto
6 exceedninetydaysafterthenoticeofmergerorconsolidationisacceptedfor
7 filing.]
[347.133.Consummationofamergerorconsolidationshallhavethe
2 followingeffects:
3 (1)Theseparateexistenceofeachpartytothemergeror
4 consolidation,exceptthesurvivingentity,ceases;
5 (2)Theassetsofeachpartytothemergerorconsolidation,including
6 anylegaciesthatitwouldhavebeencapableoftaking,transferto,vestinand
7 devolveonthesurvivingentitywithoutfurtheractordeed.Confirmatory
8 deeds,assignmentsorsimilarinstrumentstoevidencethetransfermaybe
9 executedanddeliveredatanytimeinthenameofthetransferringpartytothe
10 agreementofmergerorconsolidationbyitslastactingmembersormanagers,
11 authorizedofficersorotherauthorizedagentsorbytheappropriatemembers,
12 managers,authorizedofficersorotherauthorizedagentsofthesurviving
13 entity;
14 (3)Thesurvivingentityisliableforallthedebtsandobligationsof
15 eachnonsurvivingpartytothemergerorconsolidation.Anyexistingclaim,
16 actionorproceedingpendingbyoragainstanynonsurvivingpartytothe
17 mergerorconsolidationmaybeprosecutedtojudgmentasifthemergeror
18 consolidationhadnottakenplace,or,onmotionofthesurvivingentityorany
19 party,thesurvivingentitymaybesubstitutedasapartytotheclaim,actionor
20 proceeding.Ajudgmentagainstthenonsurvivingpartytothemergeror
21 consolidationconstitutesalienonthesurvivingentity;
22 (4)Amergerorconsolidationdoesnotimpairtherightsofcreditorsor
23 anyliensonthepropertyofanyforeignordomesticpersonpartytothemerger
24 orconsolidation;
25 (5)Inthecaseofamerger,thearticlesoforganizationofany
26 survivingdomesticlimitedliabilitycompanyshallbeamendedtotheextent
27 providedinthenoticeofmergerandthearticlesoforganizationofeachother
28 domesticlimitedliabilitycompanyshallbedeemedcancelledbythefilingof
29 thenoticeofmergerbythesecretaryofstate;
30 (6)Inthecaseofaconsolidation,thestatementssetforthinthe
31 agreementorarticlesofconsolidationandwhicharerequiredorpermittedto
32 besetforthintheorganizationaldocumentsofthenewentityshallbedeemed
33 tobetheoriginalorganizationaldocumentsofthenewentityandthe
34 organizationaldocumentsofeachotherdomesticconstituententityshallbe
35 deemedcancelledbythefilingofthenoticeofconsolidationbythesecretary
36 ofstate;and
37 (7)Theinterestsineachlimitedliabilitycompanypartytothemerger
38 orconsolidationthataretobeconvertedorexchangedintointerests,cash,
39 obligationsorotherpropertypursuanttothetermsoftheagreementofmerger
40 orconsolidationshallbesoconvertedorexchanged.Theformerholdersof
41 suchinterests,cash,obligationsorotherpropertyshallbeentitledonlytothe
HCSSSSCSSBs3&69 133 42 rightsprovidedintheagreementofmergerorconsolidationortherights
43 otherwiseprovidedbylaw.]
[347.135.If,followingamergerorconsolidationinvolvingoneor
2 moredomesticlimitedliabilitycompanies,thesurvivingentityisaperson,
3 whoisnotorganizedunderthelawsofthisstate,thereshallbeincludedinthe
4 noticeofmergerorconsolidationfiledpursuanttosection347.129astatement
5 thatthesurvivingentityagreesthatitmaybeservedwithprocessinthestate
6 ofMissouriinanyaction,suit,orproceedingfortheenforcementofany
7 obligationofthedomesticlimitedliabilitycompanyorcompaniesthatarose
8 beforethemergerorconsolidation,irrevocablyappointingthesecretaryasits
9 agenttoacceptserviceofprocessinanysuchaction,suitorproceedingand
10 specifyingtheaddresstowhichacopyoftheprocessshallbemailedtoitby
11 thesecretary.]
[347.137.1.Adomesticlimitedliabilitycompanyshallbedissolved
2 upontheoccurrenceofanyofthefollowing:
3 (1)Uponthehappeningoftheeventsspecifiedintheoperating
4 agreementorinthearticlesoforganization;
5 (2)Uponthewrittenconsentofallmembers;
6 (3)Exceptasotherwiseprovidedintheoperatingagreement,anevent
7 ofwithdrawalofamember,ifamajority,bynumber,oftheremaining
8 membersagreewithinninetydaysaftertheoccurrenceoftheeventof
9 withdrawaltodissolvethelimitedliabilitycompany;
10 (4)Atanytimetherearenomembers;provided,thatthelimited
11 liabilitycompanyisnotdissolvedandisnotrequiredtobewoundupif:
12 (a)Unlessotherwiseprovidedintheoperatingagreement,within
13 ninetydaysorsuchotherperiodasisprovidedforintheoperatingagreement
14 aftertheoccurrenceoftheeventthatterminatedthecontinuedmembershipof
15 thelastremainingmember,thepersonalrepresentative,statutoryorotherwise,
16 ofthelastremainingmemberagreesinwritingtocontinuethelimitedliability
17 companyandtotheadmissionofsuchpersonalrepresentativeofsuchmember
18 oritsnomineeordesigneetothelimitedliabilitycompanyasamember,
19 effectiveasoftheoccurrenceoftheeventthatterminatedthecontinued
20 membershipofthelastremainingmember;provided,thattheoperating
21 agreementmayprovidethatthepersonalrepresentative,statutoryorotherwise,
22 ofthelastremainingmembershallbeobligatedtoagreeinwritingtocontinue
23 thelimitedliabilitycompanyandtotheadmissionofsuchpersonal
24 representativeofsuchmemberoritsnomineeordesigneetothelimited
25 liabilitycompanyasamember,effectiveasoftheoccurrenceoftheeventthat
26 terminatedthecontinuedmembershipofthelastremainingmember;or
27 (b)Amemberisadmittedtothelimitedliabilitycompanyinthe
28 mannerprovidedforintheoperatingagreement,effectiveasoftheoccurrence
29 oftheeventthatterminatedthecontinuedmembershipofthelastremaining
30 member,withinninetydaysorsuchotherperiodasisprovidedforinthe
31 limitedliabilitycompanyagreementaftertheoccurrenceoftheeventthat
32 terminatedthecontinuedmembershipofthelastremainingmember,undera
33 provisionoftheoperatingagreementthatspecificallyprovidesforthe
HCSSSSCSSBs3&69 134 34 admissionofamembertothelimitedliabilitycompanyafterthereisnolonger
35 aremainingmemberofthelimitedliabilitycompany;
36 (5)Entryofadecreeofdissolutionundersection347.143;or
37 (6)Whenthelimitedliabilitycompanyisnotthesurvivingentityina
38 mergerorconsolidation.
39 2.Assoonaspossiblefollowingtheoccurrenceofanyoftheevents
40 specifiedinsubdivisions(1)to(5)ofsubsection1ofthissectioneffectingthe
41 dissolutionofthelimitedliabilitycompany,thelimitedliabilitycompanyshall
42 fileanoticeofwindingupwiththesecretarywhichdisclosesthedissolutionof
43 thelimitedliabilitycompanyandthecommencementofwindingupofits
44 businessandaffairs.]
[347.139.1.Uponthedissolutionofalimitedliabilitycompany,the
2 limitedliabilitycompanyshallceasetocarryonitsbusiness,exceptinsofaras
3 maybenecessaryorappropriateforthewindingupofitsbusiness,butits
4 separateexistenceshallcontinueuntilarticlesofterminationhavebeenfiled
5 withthesecretaryoruntiladecreeterminatingthelimitedliabilitycompany
6 hasbeenenteredbyacourtofcompetentjurisdiction.
7 2.Afteritsdissolution,thelimitedliabilitycompanyshalldoallother
8 actsrequiredtoliquidateitsbusinessandaffairs;proceedtocollectitsassets;
9 pay,satisfy,ordischargeitsliabilitiesandobligationsormakeadequate
10 provisionsforthepaymentordischargethereof;conveyanddisposeofsuchof
11 itspropertieswhicharenottobedistributedinkindtoitsmembers;andits
12 assetsshallbeappliedanddistributedinthefollowingorder:
13 (1)Iftherearesufficientassetstherefor,tocreditors,including
14 memberswhoarecreditors,totheextentpermittedbylaw,insatisfactionof
15 liabilitiesofthelimitedliabilitycompanyotherthanliabilitiesfordistributions
16 tomembersundersection347.101or347.103.Ifthereareinsufficientassets,
17 suchclaimsandobligationsshallbepaidorprovidedforaccordingtotheir
18 priorityand,amongclaimsandobligationsofequalpriority,ratablytothe
19 extentofassetsavailabletherefor;
20 (2)Exceptasprovidedintheoperatingagreement,tomembersand
21 formermembersinsatisfactionofliabilitiesfordistributionsundersection
22 347.101or347.103;and
23 (3)Exceptasprovidedintheoperatingagreement,tothemembersin
24 themannerprovidedinsection347.101.
25 3.Uponthefilingofthearticlesofterminationasprovidedinsection
26 347.045,theexistenceofthelimitedliabilitycompanyshallcease,exceptfor
27 thepurposeofsuits,otherproceedingsandappropriateactionasprovidedin
28 sections347.010to347.187.Theauthorizedpersonorauthorizedpersonsat
29 thetimeoftermination,orthesurvivorsofthemor,ifnone,themembersatthe
30 timeofterminationshallthereafterbetrusteesforthemembersandcreditors
31 oftheterminatedlimitedliabilitycompanyandassuchshallhaveauthorityto
32 distributeorconveyanyofthelimitedliabilitycompany'sassetsoritsproperty
33 discoveredaftertermination,andtotakesuchotheractionasmaybenecessary
34 onbehalfofandinthenameofsuchterminatedlimitedliabilitycompany.
35 Exceptasprovidedinsection347.141,actionsbyoragainstthedissolved
36 limitedliabilitycompanybroughtforthepurposeofcollectingorsettling
HCSSSSCSSBs3&69 135 37 assetsorliabilitiesorclaimsdiscoveredafterterminationmaybebroughtor
38 institutedinthenameofthelimitedliabilitycompany.]
[347.141.1.Adissolvedlimitedliabilitycompanymaydisposeofthe
2 knownclaimsagainstitinaccordancewithsubsections1and2ofthissection.
3 Thedissolvedlimitedliabilitycompanyshallnotifyitsknownclaimantsin
4 writingofthedissolutionatanytimeafteritseffectivedate.Thewritten
5 noticemustdoallofthefollowing:
6 (1)Describeinformationthatmustbeincludedinaclaim;
7 (2)Provideamailingaddresswhereaclaimmaybesent;
8 (3)Statethedeadline,whichmaynotbefewerthanninetydaysfrom
9 theeffectivedateofthewrittennotice,bywhichthedissolvedlimitedliability
10 companymustreceivetheclaim;and
11 (4)Statethattheclaimwillbebarredifnotreceivedbythedeadline.
12 2.Notwithstandingotherprovisionsoflaw,includinglawsregarding
13 permissibilityofthird-partyclaims,tothecontrary,aclaimagainstalimited
14 liabilitycompanydissolvedwithoutfraudulentintentisbarredifeitherofthe
15 followingoccurs:
16 (1)Aclaimantwhowasgivenwrittennoticeundersubsection1ofthis
17 sectiondoesnotdelivertheclaimtothedissolvedlimitedliabilitycompanyby
18 thedeadline;or
19 (2)Aclaimantwhoseclaimwasrejectedbythedissolvedlimited
20 liabilitycompanydoesnotcommenceaproceedingtoenforcetheclaimwithin
21 onehundredandtwentydaysfromtheeffectivedateoftherejectionnotice.
22
23 Forpurposesofthissubsection,"claim"doesnotincludeacontingentliability
24 oraclaimbasedonaneventoccurringaftertheeffectivedateofdissolution.
25 3.Adissolvedlimitedliabilitycompanymaydisposeoftheunknown
26 claimsagainstitbyfilinganoticeofwindingupinaccordancewith
27 subsections3and4ofthissection.Thenoticeofwindingupshallmeetallof
28 thefollowingrequirements:
29 (1)Bepublishedonetimeinanewspaperofgeneralcirculationinthe
30 countywherethedissolvedlimitedliabilitycompany'sprincipaloffice,orif
31 notinthisstate,itsregisteredoffice,isorwaslocated;
32 (2)Bepublishedonetimeinapublicationofstatewidecirculation
33 whoseaudienceisprimarilypersonsengagedinthepracticeoflawinthisstate
34 andwhichispublishednotlessthanfourtimesperyear;
35 (3)BepublishedonetimeintheMissouriRegister;
36 (4)Containarequestthatpersonswithclaimsagainstthelimited
37 liabilitycompanypresenttheminaccordancewiththenoticeofwindingup;
38 (5)Describetheinformationthatmustbeincludedinaclaimand
39 provideamailingaddresswheretheclaimmaybesent;and
40 (6)Statethataclaimagainstthelimitedliabilitycompanywillbe
41 barredunlessaproceedingtoenforcetheclaimiscommencedwithinthree
42 yearsafterthepublicationofthenotice.
43 4.Notwithstandingotherprovisionsoflaw,includinglawsregarding
44 permissibilityofthird-partyclaims,tothecontrary,ifalimitedliability
45 companydissolvedwithoutfraudulentintentfilesanoticeofwindingupin
HCSSSSCSSBs3&69 136 46 accordancewithsubsection2ofsection347.137andpublishessuchnoticein
47 accordancewithsubsection3ofthissection,theclaimofeachofthefollowing
48 claimantsisbarredunlesstheclaimantcommencesaproceedingtoenforcethe
49 claimagainstthedissolvedlimitedliabilitycompanywithinthreeyearsafter
50 thedatethenoticeofwindingupisfiledorpublished,whicheveroccurslater:
51 (1)Aclaimantwhodidnotreceivewrittennoticeundersubsection1
52 ofthissection;
53 (2)Aclaimantwhoseclaimwastimelysenttothedissolvedlimited
54 liabilitycompanybutnotactedon;or
55 (3)Aclaimantwhoseclaimiscontingentorbasedonanevent
56 occurringaftertheeffectivedateofdissolution.
57 5.Aclaimmaybeenforcedunderthissectionineitherofthe
58 followingways:
59 (1)Againstthedissolvedlimitedliabilitycompany,totheextentofits
60 undistributedassets;or
61 (2)Iftheassetshavebeendistributedinliquidation,againstamember
62 ofthedissolvedlimitedliabilitycompanytotheextentofthemember'spro
63 ratashareoftheclaimorthelimitedliabilitycompanyassetsdistributedtothe
64 memberinliquidation,whicheverisless,butamember'stotalliabilityforall
65 claimsunderthissectionshallnotexceedthetotalamountofassetsdistributed
66 tothememberinliquidation.
67 6.Forpurposesofthissection,"fraudulentintent"shallbeestablished
68 ifitisshownthatthesoleorprimarypurposeofthedissolutionwastodefraud
69 members,creditorsorothers.
70 7.Notwithstandinganyotherprovisionofthischaptertothecontrary,
71 exceptasprovidedinsubsection8ofthissection,aclaimagainstalimited
72 liabilitycompanydissolvedpursuanttothischapterforwhichclaimthe
73 limitedliabilitycompanyhasacontractofinsurancewhichwillindemnifythe
74 limitedliabilitycompanyforanyadverseresultfromsuchclaim:
75 (1)Isnotsubjecttotheprovisionsofsubsections1to6ofthissection
76 andmaynotbebarredbycompliancewithsubsections1to6ofthissection;
77 (2)Maybeassertedatanytimewithinthestatutoryperiodotherwise
78 providedbylawforsuchclaims;
79 (3)Maybeassertedagainst,andserviceofprocesshadupon,the
80 dissolvedlimitedliabilitycompanyforwhomthecourt,attherequestofthe
81 partybringingthesuit,shallappointadefendantadlitem.
82 8.Judgmentsobtainedinsuitsfiledandprosecutedpursuantto
83 subsection7ofthissectionshallonlybeenforceableagainstoneormore
84 contractsofinsuranceissuedtothelimitedliabilitycompany,itsofficers,
85 directors,agents,servantsoremployees,indemnifyingthem,oranyofthem,
86 againstsuchclaims.]
[347.143.1.Alimitedliabilitycompanymaybedissolved
2 involuntarilybyadecreeofthecircuitcourtforthecountyinwhichthe
3 registeredofficeofthelimitedliabilitycompanyissituatedinanactionfiled
4 bytheattorneygeneralwhenitisestablishedthatthelimitedliability
5 company:
6 (1)Hasprocureditsarticlesoforganizationthroughfraud;
HCSSSSCSSBs3&69 137 7 (2)Hasexceededorabusedtheauthorityconferreduponitbylaw;
8 (3)Hascarriedon,conducted,ortransacteditsbusinessinafraudulent
9 orillegalmanner;or
10 (4)Bytheabuseofitspowerscontrarytothepublicpolicyofthestate,
11 hasbecomeliabletobedissolved.
12 2.Onapplicationbyorforamember,thecircuitcourtforthecounty
13 inwhichtheregisteredofficeofthelimitedliabilitycompanyislocatedmay
14 decreedissolutionofalimitedliabilitycompanywheneveritisnotreasonably
15 practicabletocarryonthebusinessinconformitywiththeoperating
16 agreement.]
[347.145.1.Everyactionfortheinvoluntarydissolutionofalimited
2 liabilitycompanybroughtbytheattorneygeneralshallbecommencedeither
3 inthecircuitcourtofthecountyinwhichtheregisteredofficeofthelimited
4 liabilitycompanyislocatedor,ifnosuchaddressisonfilewiththesecretary,
5 inthecircuitcourtofColeCounty.Summonsshallissueandbeservedasin
6 othercivilactions.
7 2.Ifprocessisreturned"notfound",theattorneygeneralshallcause
8 publicationtobemadeasinothercivilcasesinanewspaperofgeneral
9 circulationinthecountywheretheregisteredofficeofthelimitedliability
10 companyislocated,containinganoticeofthependencyoftheaction,thetitle
11 ofthecourt,thetitleoftheaction,andthedateonorafterwhichdefaultmay
12 beentered.Theattorneygeneralmayincludeinonenoticethenamesofany
13 numberoflimitedliabilitycompaniesagainstwhichactionsarethenpending
14 inthesamecourt.Theattorneygeneralshallcauseacopyofsuchnoticetobe
15 mailedtotheregisteredagentofthelimitedliabilitycompanyasshownonthe
16 recordsofthesecretarywithintendaysafterthefirstpublicationthereof.
17 3.Thecertificateoftheattorneygeneralofthemailingofthenotice
18 shallbeprimafacieevidenceofsuchnotice.Suchnoticeshallbepublishedat
19 leastonceaweekfortwosuccessiveweeks,andthefirstpublicationmay
20 beginatanytimeafterthesummonshasbeenreturned.Unlessalimited
21 liabilitycompanyhasbeenservedwithsummons,nodefaultshallbetaken
22 againstitearlierthanthirtydaysafterthefirstpublicationofthenotice.]
[347.147.Unlessotherwiseprovidedintheoperatingagreement,upon
2 thedissolutionofthelimitedliabilitycompany,thememberormemberswho
3 havenotwrongfullydissolvedthelimitedliabilitycompanyorthelegal
4 representativeofthelastsurvivingmember,notbankrupt,have,if
5 managementisvestedinthemembers,therighttowindupthelimited
6 liabilitycompanyaffairsor,ifmanagementisvestedinoneormoremanagers,
7 therighttoauthorizesuchmanagerormanagerstoundertakeanyact
8 appropriateforwindinguptheaffairsofthelimitedliabilitycompanyor
9 completingtransactionsunfinishedatdissolution,exceptthatanymember,his
10 legalrepresentativeorhisassignee,uponcauseshown,mayobtainwindingup
11 bythecourt.]
[347.149.Thecourtshallhavefullpowertoliquidatetheassetsand
2 businessofalimitedliabilitycompany:
HCSSSSCSSBs3&69 138 3 (1)Inanactionbyacreditor,afterdissolutionofthelimitedliability
4 company,whentheclaimofthecreditorhasbeenreducedtojudgmentandan
5 executionthereonreturnedunsatisfiedanditisestablishedthatthelimited
6 liabilitycompanyisinsolvent;
7 (2)Uponapplicationbyalimitedliabilitycompany,orforcause
8 shown,byamember,afterdissolution,tohaveitsliquidationcontinuedunder
9 thesupervisionofthecourt;
10 (3)Inanactionfiledbytheattorneygeneralaftertheissuanceofa
11 decreeofdissolutionforanyofthecausesprovidedinsubsection1ofsection
12 347.143;or
13 (4)Inanactionfiledbyanymemberaftertheissuanceofadecreeof
14 dissolutionasprovidedinsubsection2ofsection347.143.]
[347.151.Subjecttotheconstitutionofthisstate:
2 (1)Thelawsofthestateorotherjurisdictionunderwhichaforeign
3 limitedliabilitycompanyisorganizedgovernitsorganizationandinternal
4 affairsandtheliabilityofitsmembers;and
5 (2)Aforeignlimitedliabilitycompanymaynotbedeniedregistration
6 byreasonofanydifferencebetweenthoselawsandthelawsofthisstate.]
[347.153.1.Beforetransactingbusinessinthisstate,aforeignlimited
2 liabilitycompanyshallregisterinaformatprescribedbythesecretaryunless
3 otherwiseexemptundersubdivision(5)ofsubsection5ofsection347.163.In
4 ordertoregister,aforeignlimitedliabilitycompanyshallpaytherequired
5 filingfeeandshallsubmittothesecretaryanapplicationforregistrationasa
6 foreignlimitedliabilitycompanysignedonitsbehalfbyamanager,member
7 orotherauthorizedagentandsettingforth:
8 (1)Thenameoftheforeignlimitedliabilitycompanyand,ifdifferent,
9 thenameunderwhichitproposestoregisterandtransactbusinessinthisstate;
10 (2)Thejurisdictioninwhichitwasformedanddateofitsformation;
11 (3)Thepurposeoftheforeignlimitedliabilitycompanyorthegeneral
12 characterofthebusinessitproposestotransactinthisstate;
13 (4)Thenameandphysicaladdressofitsregisteredagentand
14 registeredofficeinthisstate,whichofficeandagentshallbesubjecttothe
15 samerightsandlimitationsasprovidedinsections347.030and347.033;
16 (5)Astatementthatthesecretaryisappointedtheagentoftheforeign
17 limitedliabilitycompanyforserviceofprocessifthelimitedliabilitycompany
18 failstomaintainaregisteredagentinthisstateoriftheagentcannotbefound
19 orservedwiththeexerciseofreasonablediligence;
20 (6)Theaddressoftheofficerequiredtobemaintainedinthe
21 jurisdictionofitsorganizationbythelawsofthatjurisdictionor,ifnotso
22 required,oftheprincipalofficeoftheforeignlimitedliabilitycompany;
23 (7)Acertificateofexistenceoradocumentofsimilarimportduly
24 authenticatedbythesecretaryofstateorotherofficialhavingcustodyofthe
25 recordsinthestateorcountryunderwhoselawsitisregistered;and
26 (8)Acurrentcertificateofgoodstanding/existencefromthesecretary
27 ofstate'sofficeinthestateofdomicile,suchdocumentshouldbedatedwithin
28 sixtycalendardaysfromfiling.
HCSSSSCSSBs3&69 139 29 2.Theinformationprovidedbytheforeignlimitedliabilitycompany
30 undersubdivisions(1)through(8)ofsubsection1ofthissectionshallalsobe
31 providedforeachseparateseriesofthelimitedliabilitycompanyauthorizedto
32 operateundersection347.186.]
[347.155.Ifthesecretaryfindsthatanapplicationforregistration
2 conformstolawandallrequisitefeeshavebeenpaid:
3 (1)Thesecretaryshallendorseontheacceptedapplicationtheword
4 "Filed",andthemonth,dayandyearofthefilingthereof;and
5 (2)Theacceptedfilingshallberetainedinthesecretaryofstate's
6 recordsandacopyoftheacceptedfilingandcertificateofregistrationshallbe
7 returnedtothepersonwhosubmittedthedocumentorthatperson's
8 representative.]
[347.157.Aforeignlimitedliabilitycompanymayregisterwiththe
2 secretaryunderanyname,whetherornotitisthenameunderwhichitis
3 registeredinitsjurisdictionoforganization,thatcouldberegisteredbya
4 domesticlimitedliabilitycompany.]
[347.160.1.Aforeignlimitedliabilitycompanyauthorizedtotransact
2 businessinthestateshallobtainanamendedcertificateofregistrationfrom
3 thesecretaryofstateifitchanges:
4 (1)Thenameofthelimitedliabilitycompany;
5 (2)Thestateorcountryofitsregistration.
6 2.Theamendmentshallincludeacertificateofexistenceordocument
7 ofsimilarimportdulyauthenticatedbythesecretaryofstateorotherofficial
8 havingcustodyoftherecordsinthestateorcountryunderwhoselawsitis
9 registered,suchdocumentshouldbedatedwithinsixtycalendardaysfrom
10 filingforacceptance.
11 3.Thefeeforfilinganamendedcertificateofregistrationshallbe
12 twentydollars.]
[347.161.Aforeignlimitedliabilitycompanymaycancelits
2 registrationbyfilingwiththesecretaryarticlesofcancellationsignedonits
3 behalfbyamanager,memberorotherauthorizedagent.Acancellationdoes
4 notterminatetheauthorityofthesecretarytoacceptserviceofprocessonthe
5 foreignlimitedliabilitycompanywithrespecttocausesofactionarisingoutof
6 thetransactionsofbusinessinthisstate.]
[347.163.1.Everyforeignlimitedliabilitycompanynowtransacting
2 businessinorwhichmayhereaftertransactbusinessinthisstatewhichshall
3 neglectorfailtocomplywiththeprovisionsofsection347.153shallbe
4 subjecttoafineofnotlessthanonethousanddollars.Ifthesecretaryis
5 advisedthataforeignlimitedliabilitycompanyistransactingbusinesswithin
6 thisstateincontraventionofsections347.010to347.187,thesecretaryshall
7 reportthefacttotheprosecutingattorneyofanycountyinwhichthelimited
8 liabilitycompanyistransactingbusiness,andtheprosecutingattorneyshall,as
9 soonthereafterasispractical,instituteproceedingstorecoverthefine
HCSSSSCSSBs3&69 140 10 prescribedinthissection.Inadditiontosuchpenalty,noforeignlimited
11 liabilitycompanyfailingtocomplywithsections347.010to347.187may
12 maintainanysuitoraction,eitherlegalorequitable,inanyofthecourtsofthis
13 state,uponanydemand,whetherarisingoutofcontractortort,whilethe
14 requirementsofsections347.010to347.187havenotbeenmet.
15 2.Thefailureofaforeignlimitedliabilitycompanytoregisterinthis
16 statedoesnotimpairthevalidityofanycontractoractoftheforeignlimited
17 liabilitycompanyorpreventtheforeignlimitedliabilitycompanyfrom
18 defendinganyaction,suitorproceedinginanycourtofthisstate.
19 3.Amemberofaforeignlimitedliabilitycompanyisnotliablefor
20 anydebts,obligationsorliabilitiesoftheforeignlimitedliabilitycompany
21 solelybyreasonofhavingtransactedbusinessinthisstatewithoutregistration.
22 4.Aforeignlimitedliabilitycompany,bytransactingbusinessinthis
23 statewithoutregistration,shallbesubjecttotheprovisionsofsections506.500
24 to506.520withrespecttocausesofactionsarisingoutofthetransactionof
25 businessinthisstate.
26 5.Withoutexcludingotheractivitieswhichmaynotconstitute
27 transactingbusinessinthisstate,aforeignlimitedliabilitycompanyshallnot
28 beconsideredtobetransactingbusinessinthisstate,forpurposesofsections
29 347.010to347.187,byreasonofcarryingoninthisstateanyoneormoreof
30 thefollowingactivities:
31 (1)Maintainingordefendinganyactionorsuitoranyadministrative
32 orarbitrationproceeding,oreffectingthesettlementthereoforthesettlement
33 ofclaimsordisputes;
34 (2)Holdingmeetingsofitsmembersorcarryingonotheractivities
35 concerningitsinternalaffairs;
36 (3)Maintainingbankaccounts;
37 (4)Borrowingmoneyorcreatingevidenceofdebt,mortgageorlien
38 onorothersecurityinterestinrealorpersonalproperty;
39 (5)Securingorcollectingdebtsorenforcinganyrightsinproperties
40 securingthesame;
41 (6)Transactinganybusinessininterstatecommerce;or
42 (7)Conductinganisolatedtransactioncompletedwithinaperiodof
43 thirtydaysandnotinthecourseofanumberofrepeatedtransactionsofalike
44 nature.
45 6.Aforeigncorporation,asdefinedinsection351.015orsection
46 355.066,shallnotbedeemedtobetransactingbusinessinthisstateforthe
47 purposesofsection351.572solelyforthereasonthatitisamemberofa
48 limitedliabilitycompany.
49 7.Aforeignlimitedpartnershiporforeignregisteredlimitedliability
50 limitedpartnership,asdefinedinsection359.011,shallnotbedeemedtobe
51 transactingbusinessinthisstateforthepurposesofsection359.551solelyfor
52 thereasonthatitisamemberofalimitedliabilitycompany.
53 8.Aforeignlimitedliabilitycompanyasdefinedinsections347.010
54 to347.187shallnotbedeemedtobetransactingbusinessinthisstateforthe
55 purposesofthissection,solelyforthereasonthatitisamemberofalimited
56 liabilitycompany.
HCSSSSCSSBs3&69 141 57 9.Aforeignregisteredlimitedliabilitypartnership,asdefinedin
58 section358.020,shallnotbedeemedtobetransactingbusinessinthisstatefor
59 thepurposesofsection351.572solelyforthereasonthatitisamemberofa
60 limitedliabilitycompany.
61 10.Theprovisionsofthissectiondonotapplyindeterminingthe
62 contextoractivitieswhichmaysubjectaforeignlimitedliabilitycompanyto
63 serviceofprocess,suit,taxationorregulationunderanyotherstatuteofthis
64 state.]
[347.165.Thesecretarymaybringanactiontorestrainaforeign
2 limitedliabilitycompanyfromtransactingbusinessinthisstateinviolationof
3 sections347.010to347.187.]
[347.167.Serviceonaforeignlimitedliabilitycompanyshallbeas
2 providedinsection347.033.Venueofactionsagainstforeignlimitedliability
3 companiesshallbeasprovidedinsection347.069.]
[347.169.Executionofanapplicationoracertificatebyaforeign
2 limitedliabilitycompanyconstitutesanaffirmationbythepersonwhosigned
3 itunderthepenaltiessetoutinsection575.040thatthefactsstatedthereinare
4 trueandthatthepersonsosigninghastheauthoritytoexecutesuch
5 applicationorcertificate.]
[347.171.Amembermaybringanactionintherightofthelimited
2 liabilitycompanytorecoverajudgmentinitsfavorifallofthefollowing
3 conditionsaremet:
4 (1)Theplaintiffdoesnothavetheauthorityundertheprovisionsof
5 theoperatingagreementtocausethelimitedliabilitycompanytosueinits
6 ownright;
7 (2)Theplaintiffhasmadedemandontheauthorizedpersonorpersons
8 havingtheauthoritytocausethelimitedliabilitycompanytoinstitutesuch
9 actionrequestingthatsuchpersonscausethelimitedliabilitycompanytosue
10 initsownright;
11 (3)Thepersonswithsuchauthorityhaverefusedtobringtheactionor,
12 afteradequatetimetoconsiderthedemand,havefailedtorespondtosuch
13 demand;and
14 (4)Theplaintiffisamemberofthelimitedliabilitycompanyatthe
15 timeofbringingtheaction,andwasamemberofthelimitedliabilitycompany
16 atthetimeofthetransactionofwhichhecomplains,orhisstatusasamember
17 ofthelimitedliabilitycompanythereafterdevolveduponhimbyoperationof
18 laworpursuanttothetermsoftheoperatingagreementfromapersonwho
19 wasamemberatsuchtime.]
[347.173.Inaderivativeaction,thecomplaintshallsetforthwith
2 particularitytheeffortoftheplaintifftosecureinitiationoftheactionbythe
3 personswhowouldotherwisehavetheauthoritytocausethelimitedliability
4 companytosueinitsownright.]
HCSSSSCSSBs3&69 142 [347.175.Ifaderivativeactionissuccessful,inwholeorinpart,orif
2 anythingisreceivedbytheplaintiffasaresultofajudgment,compromiseor
3 settlementofanactionorclaim,thecourtmayawardtheplaintiffreasonable
4 expenses,includingreasonableattorney'sfees,andshalldirecthimtoremitto
5 thelimitedliabilitycompanytheremainderofthoseproceedsreceivedby
6 him.]
[347.177.1.Sections347.010to347.187shallbesoappliedand
2 construedtoeffectuateitsgeneralpurposetomakeuniformthelawwith
3 respecttothesubjectofsections347.010to347.187amongthestatesenacting
4 it.
5 2.Therulethatstatutesinderogationofthecommonlawaretobe
6 strictlyconstruedshallhavenoapplicationtosections347.010to347.187.
7 3.Thelawofestoppelshallapplytosections347.010to347.187.
8 4.Thelawofagencyshallapplyundersections347.010to347.187.
9 5.Inanycasenotprovidedforinsections347.010to347.187,the
10 rulesoflawandequityshallgovern.
11 6.Sections347.010to347.187shallnotbeconstruedsoastoimpair
12 theobligationsofanycontractexistingonAugust28,1993,nortoaffectany
13 actionorproceedingsbegunorrightaccruedpriortoAugust28,1993.]
[347.179.1.Thesecretaryshallchargeandcollect:
2 (1)Forfilingtheoriginalarticlesoforganization,afeeofonehundred
3 dollars;
4 (2)Forfilingtheoriginalarticlesoforganizationonline,inan
5 electronicformatprescribedbythesecretaryofstate,afeeofforty-five
6 dollars;
7 (3)Applicationsforregistrationofforeignlimitedliabilitycompanies
8 andissuanceofacertificateofregistrationtotransactbusinessinthisstate,a
9 feeofonehundreddollars;
10 (4)Amendmentstoandrestatementsofarticlesoflimitedliability
11 companiestoapplicationforregistrationofaforeignlimitedliabilitycompany
12 oranyotherfilingotherwiseprovidedfor,afeeoftwentydollars;
13 (5)Articlesofterminationoflimitedliabilitycompaniesor
14 cancellationofregistrationofforeignlimitedliabilitycompanies,afeeof
15 twentydollars;
16 (6)Forfilingnoticeofmergerorconsolidation,afeeoftwenty
17 dollars;
18 (7)Forfilinganoticeofwindingup,afeeoftwentydollars;
19 (8)Forissuingacertificateofgoodstanding,afeeoffivedollars;
20 (9)Foranoticeoftheabandonmentofmergerorconsolidation,afee
21 oftwentydollars;
22 (10)Forfurnishingacopyofanydocumentorinstrument,afeeof
23 fiftycentsperpage;
24 (11)Foracceptinganapplicationforreservationofaname,orfor
25 filinganoticeofthetransferorcancellationofanynamereservation,afeeof
26 twentydollars;
HCSSSSCSSBs3&69 143 27 (12)Forfilingastatementofchangeofaddressofregisteredofficeor
28 registeredagent,orboth,afeeoffivedollars;
29 (13)Foranyserviceofnotice,demand,orprocessuponthesecretary
30 asresidentagentofalimitedliabilitycompany,afeeoftwentydollars,which
31 amountmayberecoveredastaxablecostsbythepartyinstitutingsuchsuit,
32 action,orproceedingcausingsuchservicetobemadeifsuchpartyprevails
33 therein;
34 (14)Forfilinganamendedcertificateofregistrationafeeoftwenty
35 dollars;and
36 (15)Forfilingastatementofcorrectionafeeoffivedollars.
37 2.Feesmandatedinsubdivisions(1)and(2)ofsubsection1ofthis
38 sectionandforapplicationforreservationofanameinsubdivision(11)of
39 subsection1ofthissectionshallbewaivedifanorganizerwhoislistedasa
40 memberintheoperatingagreementofthelimitedliabilitycompanyisa
41 memberoftheMissouriNationalGuardoranyotheractivedutymilitary,
42 residesinthestateofMissouri,andprovidesproofofsuchservicetothe
43 secretaryofstate.]
[347.181.Tothefullestextentpermittedbylaw,theprovisionsof
2 sections347.010to347.187shallapplytocommercewithforeignnationsand
3 amongtheseveralstatesforallpurposesincludingthedeterminationofthe
4 natureandextentoftherightsandobligationsofalimitedliabilitycompany
5 organizedhereunderandtheliabilityofitsmembersandmanagers.]
[347.183.Inadditiontotheotherpowersofthesecretaryestablished
2 insections347.010to347.187,thesecretaryshall,asisreasonablynecessary
3 toenablethesecretarytoadministersections347.010to347.187efficiently
4 andtoperformthesecretary'sduties,havethefollowingpowersincluding,but
5 notlimitedto:
6 (1)Thepowertoexaminethebooksandrecordsofanylimited
7 liabilitycompanytowhichsections347.010to347.187apply,anditshallbe
8 thedutyofanymanager,memberoragentofsuchlimitedliabilitycompany
9 havingpossessionorcontrolofsuchbooksandrecordstoproducesuchbooks
10 andrecordsforexaminationondemandofthesecretaryorhisdesignated
11 employee;exceptthatnopersonshallbesubjecttoanycriminalprosecution
12 onaccountofanymatterorthingwhichmaybedisclosedbyexaminationof
13 anylimitedliabilitycompanybooksandrecords,whichtheymayproduceor
14 exhibitforexamination;oronaccountofanyothermatterorthingconcerning
15 whichtheymaymakeanyvoluntaryandtruthfulstatementinwritingtothe
16 secretaryorhisdesignatedemployee.Allfactsobtainedintheexaminationof
17 thebooksandrecordsofanylimitedliabilitycompany,orthroughthe
18 voluntaryswornstatementofanymanager,member,agentoremployeeofany
19 limitedliabilitycompany,shallbetreatedasconfidential,exceptinsofaras
20 officialdutymayrequirethedisclosureofsame,orwhensuchfactsare
21 materialtoanyissueinanylegalproceedinginwhichthesecretaryorhis
22 designatedemployeemaybeapartyorcalledaswitness,and,ifthesecretary
23 orhisdesignatedemployeeshall,exceptasprovidedinthissubdivision,
24 discloseanyinformationrelativetotheprivateaccounts,affairs,and
HCSSSSCSSBs3&69 144 25 transactionsofanysuchlimitedliabilitycompany,heshallbeguiltyofaclass
26 Cmisdemeanor.Ifanymanager,memberorregisteredagentinpossessionor
27 controlofsuchbooksandrecordsofanysuchlimitedliabilitycompanyshall
28 refuseademandofthesecretaryorhisdesignatedemployee,toexhibitthe
29 booksandrecordsofsuchlimitedliabilitycompanyforexamination,such
30 personshallbeguiltyofaclassBmisdemeanor;
31 (2)Thepowertocancelordisapproveanyarticlesoforganizationor
32 otherfilingrequiredundersections347.010to347.187,ifthelimitedliability
33 companyfailstocomplywiththeprovisionsofsections347.010to347.187by
34 failingtofilerequireddocumentsundersections347.010to347.187,by
35 failingtomaintainaregisteredagent,byfailingtopaytherequiredfilingfees,
36 byusingfraudordeceptionineffectinganyfiling,byfilingarequired
37 documentcontainingafalsestatement,orbyviolatinganysectionorsections
38 ofthecriminallawsofMissouri,thefederalgovernmentoranyotherstateof
39 theUnitedStates.Thirtydaysbeforesuchcancellationshalltakeeffect,the
40 secretaryshallnotifythelimitedliabilitycompanywithwrittennotice,either
41 personallyorbycertifiedmail,depositedintheUnitedStatesmailinasealed
42 envelopeaddressedtosuchlimitedliabilitycompany'slastregisteredagentin
43 office,ortooneofthelimitedliabilitycompany'smembersormanagers.
44 Writtennoticeofthesecretary'sproposedcancellationtothelimitedliability
45 company,domesticorforeign,shallspecifythereasonsforsuchaction.The
46 limitedliabilitycompanymayappealthisnoticeofproposedcancellationto
47 thecircuitcourtofthecountyinwhichtheregisteredofficeofsuchlimited
48 liabilitycompanyisorisproposedtobesituatedbyfilingwiththeclerkof
49 suchcourtapetitionsettingforthacopyofthearticlesoforganizationorother
50 relevantdocumentsandacopyoftheproposedwrittencancellationthereofby
51 thesecretary,suchpetitiontobefiledwithinthirtydaysafternoticeofsuch
52 cancellationshallhavebeengiven,andthemattershallbetriedbythecourt,
53 andthecourtshalleithersustaintheactionofthesecretaryordirecthimto
54 takesuchactionasthecourtmaydeemproper.Anappealfromthecircuit
55 courtinsuchacaseshallbeallowedasincivilaction.Thelimitedliability
56 companymayprovideinformationtothesecretarythatwouldallowthe
57 secretarytowithdrawthenoticeofproposedcancellation.Thisinformation
58 mayconsistof,butneednotbelimitedto,correctedstatementsand
59 documents,newfilings,affidavitsandcertifiedcopiesofotherfiled
60 documents;
61 (3)Thepowertorescindcancellationprovidedforinsubdivision(2)
62 ofthissectionuponcompliancewitheitherofthefollowing:
63 (a)Theaffectedlimitedliabilitycompanyprovidesthenecessary
64 documentsandaffidavitsindicatingthelimitedliabilitycompanyhas
65 correctedtheconditionscausingtheproposedcancellationorthe
66 cancellation;or
67 (b)Thelimitedliabilitycompanyprovidesthecorrectstatementsor
68 documentationthatthelimitedliabilitycompanyisnotinviolationofany
69 sectionofthecriminalcode;and
70 (4)Thepowertochargelatefilingfeesforanyfilingfeerequired
71 undersections347.010to347.187andthepowertoimposecivilpenaltiesas
HCSSSSCSSBs3&69 145 72 providedinsection347.053.Latefilingfeesshallbeassessedatarateoften
73 dollarsforeachthirty-dayperiodofdelinquency;
74 (5)(a)Thepowertoadministrativelycancelanarticlesof
75 organizationifthelimitedliabilitycompany'speriodofdurationstatedin
76 articlesoforganizationexpires.
77 (b)Notlessthanthirtydaysbeforesuchadministrativecancellation
78 shalltakeeffect,thesecretaryshallnotifythelimitedliabilitycompanywith
79 writtennotice,eitherpersonallyorbymail.Ifmailed,thenoticeshallbe
80 deemeddeliveredfivedaysafteritisdepositedintheUnitedStatesmailina
81 sealedenvelopeaddressedtosuchlimitedliabilitycompany'slastregistered
82 agentandofficeortooneofthelimitedliabilitycompany'smanagersor
83 members.
84 (c)Ifthelimitedliabilitycompanydoesnottimelyfileanarticlesof
85 amendmentinaccordancewithsection347.041toextendthedurationofthe
86 limitedliabilitycompany,whichmaybeanynumberofyearsorperpetual,or
87 demonstratetothereasonablesatisfactionofthesecretarythattheperiodof
88 durationdeterminedbythesecretaryisincorrect,withinsixtydaysafter
89 serviceofthenoticeisperfectedbypostingwiththeUnitedStatesPostal
90 Service,thenthesecretaryshallcancelthearticlesoforganizationbysigning
91 anadministrativecancellationthatrecitesthegroundsforcancellationandits
92 effectivedate.Thesecretaryshallfiletheoriginaloftheadministrative
93 cancellationandserveacopyonthelimitedliabilitycompanyasprovidedin
94 section347.051.
95 (d)Alimitedliabilitycompanywhosearticlesoforganizationhas
96 beenadministrativelycancelledcontinuesitsexistencebutmaynotcarryon
97 anybusinessexceptthatnecessarytowindupandliquidateitsbusinessand
98 affairsundersection347.147andnotifyclaimantsundersection347.141.
99 (e)Theadministrativecancellationofanarticlesoforganizationdoes
100 notterminatetheauthorityofitsregisteredagent.
101 (6)(a)Thepowertorescindanadministrativecancellationand
102 reinstatethearticlesoforganization.
103 (b)Exceptasotherwiseprovidedintheoperatingagreement,alimited
104 liabilitycompanywhosearticlesoforganizationhasbeenadministratively
105 cancelledundersubdivision(5)ofthissectionmayfileanarticlesof
106 amendmentinaccordancewithsection347.041toextendthedurationofthe
107 limitedliabilitycompany,whichmaybeanynumberorperpetual.
108 (c)Alimitedliabilitycompanywhosearticlesoforganizationhasbeen
109 administrativelycancelledundersubdivision(5)ofthissectionmayapplyto
110 thesecretaryforreinstatement.Theapplicantshall:
111 a.Recitethenameofthelimitedliabilitycompanyandtheeffective
112 dateofitsadministrativecancellation;
113 b.Statethatthegroundsforcancellationeitherdidnotexistorhave
114 beeneliminated,asapplicable,andbeaccompaniedbydocumentation
115 satisfactorytothesecretaryevidencingthesame;
116 c.Statethatthelimitedliabilitycompany'snamesatisfiesthe
117 requirementsofsection347.020;
118 d.Beaccompaniedbyareinstatementfeeintheamountofone
119 hundreddollars,orsuchgreateramountasrequiredbystateregulation,plus
HCSSSSCSSBs3&69 146 120 anydelinquentfees,penalties,andotherchargesasdeterminedbythe
121 secretarytothenbedue.
122 (d)Ifthesecretarydeterminesthattheapplicationcontainsthe
123 informationandisaccompaniedbythefeesrequiredinparagraph(c)ofthis
124 subdivisionandthattheinformationandfeesarecorrect,thesecretaryshall
125 rescindthecancellationandprepareacertificateofreinstatementthatrecites
126 hisorherdeterminationandtheeffectivedateofreinstatement,filethe
127 originalarticlesoforganization,andserveacopyonthelimitedliability
128 companyasprovidedinsection347.051.
129 (e)Whenthereinstatementiseffective,itshallrelatebacktoandtake
130 effectasoftheeffectivedateoftheadministrativecancellationofthearticles
131 oforganizationandthelimitedliabilitycompanymaycontinuecarryingonits
132 businessasiftheadministrativecancellationhadneveroccurred.
133 (f)Intheeventthenameofthelimitedliabilitycompanywasreissued
134 bythesecretarytoanotherentitypriortothetimeapplicationforreinstatement
135 wasfiled,thelimitedliabilitycompanyapplyingforreinstatementmayelectto
136 reinstateusinganewnamethatcomplieswiththerequirementsofsection
137 347.020andthathasbeenapprovedbyappropriateactionofthelimited
138 liabilitycompanyforchangingthenamethereof.
139 (g)Ifthesecretarydeniesalimitedliabilitycompany'sapplicationfor
140 reinstatementfollowingadministrativecancellationofthearticlesof
141 organization,heorsheshallservethelimitedliabilitycompanyasprovided
142 insection347.051withawrittennoticethatexplainsthereasonorreasonsfor
143 denial.
144 (h)Thelimitedliabilitycompanymayappealadenialofreinstatement
145 asprovidedforinsubdivision(2)ofthissection.
146 (7)Subdivision(6)ofthissectionshallapplytoanylimitedliability
147 companywhosearticlesoforganizationwascancelledbecausesuchlimited
148 liabilitycompany'speriodofdurationstatedinthearticlesoforganization
149 expiredonorafterAugust28,2003.]
[347.185.Itshallberebuttablypresumedthatamember'sinterestina
2 limitedliabilitycompanyinwhichmanagementisnotvestedinoneormore
3 managersisnotasecurityforpurposesofanyandalllawsofthisstate
4 regulatingthesaleorexchangeofsecurities.]
[347.186.1.Anoperatingagreementmayestablishorprovideforthe
2 establishmentofadesignatedseriesofmembers,managers,orlimitedliability
3 companyinterestshavingseparaterights,powers,ordutieswithrespectto
4 specifiedpropertyorobligationsofthelimitedliabilitycompanyorprofitsand
5 lossesassociatedwithspecifiedpropertyorobligations.Totheextent
6 providedintheoperatingagreement,anysuchseriesmayhaveaseparate
7 businesspurposeorinvestmentobjective.
8 2.(1)Notwithstandinganyotherprovisionsoflawtothecontrary,the
9 debts,liabilities,andobligationsincurred,contractedfor,orotherwiseexisting
10 withrespecttoaparticularseriesshallbeenforceableagainsttheassetsof
11 suchseriesonly,andnotagainsttheassetsofthelimitedliabilitycompany
12 generallyoranyotherseriesthereof.Suchparticularseriesshallbedeemedto
HCSSSSCSSBs3&69 147 13 havepossession,custody,andcontrolonlyofthebooks,records,information,
14 anddocumentationrelatedtosuchseriesandnotofthebooks,records,
15 information,anddocumentationrelatedtothelimitedliabilitycompanyasa
16 wholeoranyotherseriesthereofifallofthefollowingapply:
17 (a)Theoperatingagreementcreatesoneormoreseries;
18 (b)Separateanddistinctrecordsaremaintainedfororonbehalfofany
19 suchseries;
20 (c)Theassetsassociatedwithanysuchseries,whetherhelddirectlyor
21 indirectly,includingthroughanomineeorotherwise,areaccountedfor
22 separatelyfromtheotherassetsofthelimitedliabilitycompanyorofanyother
23 series;
24 (d)Theoperatingagreementprovidesforthelimitationsonliabilities
25 ofaseriesdescribedinthissubdivision;
26 (e)Noticeofthelimitationonliabilitiesofaseriesdescribedinthis
27 subdivisionisincludedinthelimitedliabilitycompany'sarticlesof
28 organization;and
29 (f)Thelimitedliabilitycompanyhasfiledarticlesoforganizationthat
30 separatelyidentifyeachserieswhichistohavelimitedliabilityunderthis
31 section.
32 (2)Withrespecttoaparticularseries,unlessotherwiseprovidedinthe
33 operatingagreement,noneofthedebts,liabilities,obligations,andexpenses
34 incurred,contractedfororotherwiseexistingwithrespecttoalimitedliability
35 companygenerally,oranyotherseriesthereof,shallbeenforceableagainstthe
36 assetsofsuchseries,subjecttotheprovisionsofsubdivision(1)ofthis
37 subsection.
38 (3)Compliancewithparagraphs(e)and(f)ofsubdivision(1)ofthis
39 subsectionshallconstitutenoticeofsuchlimitationofliabilityofaseries.
40 (4)Aserieswithlimitedliabilityshallbetreatedasaseparateentityto
41 theextentsetforthinthearticlesoforganization.Eachserieswithlimited
42 liabilitymay,initsownname,contract,holdtitletoassets,grantsecurity
43 interests,sueandbesued,andotherwiseconductbusinessandexercisethe
44 powersofalimitedliabilitycompanyunderthischapter.Thelimitedliability
45 companyandanyofitsseriesmayelecttoconsolidateitsoperationsasa
46 singletaxpayertotheextentpermittedunderapplicablelaw,electtowork
47 cooperatively,electtocontractjointly,orelecttobetreatedasasingle
48 businessforthepurposesofqualificationorauthorizationtodobusinessin
49 thisoranyotherstate.Suchelectionsshallnotaffectthelimitationofliability
50 setforthinthissectionexcepttotheextentthattheserieshavespecifically
51 acceptedjointliabilitybycontract.
52 3.Exceptinthecaseofaforeignlimitedliabilitycompanythathas
53 adoptedanamethatisnotthenameunderwhichitisregisteredinits
54 jurisdictionoforganization,aspermittedundersections347.153and347.157,
55 thenameoftheserieswithlimitedliabilityisrequiredtocontaintheentire
56 nameofthelimitedliabilitycompanyandbedistinguishablefromthenames
57 oftheotherseriessetforthinthearticlesoforganization.Inthecaseofa
58 foreignlimitedliabilitycompanythathasadoptedanamethatisnotthename
59 underwhichitisregisteredinitsjurisdictionoforganization,aspermitted
60 undersections347.153and347.157,thenameoftheserieswithlimited
HCSSSSCSSBs3&69 148 61 liabilitymustcontaintheentirenameunderwhichtheforeignlimitedliability
62 companyhasbeenadmittedtotransactbusinessinthisstate.
63 4.(1)(a)Uponfilingofarticlesoforganizationsettingforththename
64 ofeachserieswithlimitedliability,incompliancewithsection347.037or
65 amendmentsundersection347.041,theseries'existenceshallbegin.
66 (b)Eachcopyofthearticlesoforganizationstamped"Filed"and
67 markedwiththefilingdateshallbeconclusiveevidencethatallrequired
68 conditionshavebeenmetandthattheserieshasbeenorshallbelegally
69 organizedandformedunderthissectionandisnoticeforallpurposesofall
70 otherfactsrequiredtobesetforththerein.
71 (c)Thenameofaserieswithlimitedliabilityunderthissectionmay
72 bechangedbyfilingarticlesofamendmentwiththesecretaryofstatepursuant
73 tosection347.041,identifyingtheserieswhosenameisbeingchangedandthe
74 newnameofsuchseries.Ifnotthesameasthelimitedliabilitycompany,the
75 namesofthemembersofamember-managedseriesorofthemanagersofa
76 manager-managedseriesmaybechangedbyanamendmenttothearticlesof
77 organizationwiththesecretaryofstate.
78 (d)Aserieswithlimitedliabilityunderthissectionmaybedissolved
79 byfilingwiththesecretaryofstatearticlesofamendmentpursuanttosection
80 347.041identifyingtheseriesbeingdissolvedorbythedissolutionofthe
81 limitedliabilitycompanyasprovidedinsection347.045.Excepttotheextent
82 otherwiseprovidedintheoperatingagreement,aseriesmaybedissolvedand
83 itsaffairswoundupwithoutcausingthedissolutionofthelimitedliability
84 company.Thedissolutionofaseriesestablishedinaccordancewith
85 subsection2ofthissectionshallnotaffectthelimitationonliabilitiesofsuch
86 seriesprovidedbysubsection2ofthissection.Aseriesisterminatedandits
87 affairsshallbewoundupuponthedissolutionofthelimitedliabilitycompany
88 undersection347.045.
89 (e)Articlesoforganization,amendment,orterminationdescribed
90 underthissubdivisionmaybeexecutedbythelimitedliabilitycompanyorany
91 manager,person,orentitydesignatedintheoperatingagreementforthe
92 limitedliabilitycompany.
93 (2)Ifdifferentfromthelimitedliabilitycompany,thearticlesof
94 organizationshalllistthenamesofthemembersforeachseriesiftheseriesis
95 member-managedorthenamesofthemanagersiftheseriesismanager-
96 managed.
97 (3)Aseriesofalimitedliabilitycompanyshallbedeemedtobein
98 goodstandingaslongasthelimitedliabilitycompanyisingoodstanding.
99 (4)Theregisteredagentandregisteredofficeforthelimitedliability
100 companyappointedundersection347.033shallserveastheagentandoffice
101 forserviceofprocessforeachseriesinthisstate.
102 5.(1)Anoperatingagreementmayprovideforclassesorgroupsof
103 membersormanagersassociatedwithaserieshavingsuchrelativerights,
104 powers,anddutiesasanoperatingagreementmayprovideandmaymake
105 provisionforthefuturecreationofadditionalclassesorgroupsofmembersor
106 managersassociatedwiththeserieshavingsuchrelativerights,powers,and
107 dutiesasmayfromtimetotimebeestablished,includingrights,powers,and
HCSSSSCSSBs3&69 149 108 dutiesseniorandsubordinatetoordifferentfromexistingclassesandgroups
109 ofmembersormanagersassociatedwiththeseries.
110 (2)Aseriesmaybemanagedeitherbythememberormembers
111 associatedwiththeseriesorbythemanagerormanagerschosenbythe
112 membersofsuchseries,asprovidedintheoperatingagreement.Unless
113 otherwiseprovidedinanoperatingagreement,themanagementofaseries
114 shallbevestedinthemembersassociatedwithsuchseries.
115 (3)Anoperatingagreementmaygranttoallorcertainidentified
116 membersormanagers,ortoaspecifiedclassorgroupofthemembersor
117 managersassociatedwithaseries,therighttovoteseparatelyorwithallor
118 anyclassorgroupofthemembersormanagersassociatedwiththeseries,on
119 anymatter.Anoperatingagreementmayprovidethatanymemberorclassor
120 groupofmembersassociatedwithaseriesshallhavenovotingrightsorability
121 tootherwiseparticipateinthemanagementorgovernanceofsuchseries,but
122 anysuchmemberorclassorgroupofmembersareownersoftheseries.
123 (4)Exceptasmodifiedinthissection,theprovisionsofthischapter
124 whicharegenerallyapplicabletolimitedliabilitycompaniesandtheir
125 managers,members,andtransfereesshallbeapplicabletoeachparticular
126 serieswithrespecttotheoperationofsuchseries.
127 (5)Exceptasotherwiseprovidedinanoperatingagreement,anyevent
128 specifiedinthischapterorinanoperatingagreementthatcausesamanagerto
129 ceasetobeamanagerwithrespecttoaseriesshallnot,initself,causesuch
130 managertoceasetobeamanagerofthelimitedliabilitycompanyorwith
131 respecttoanyotherseriesthereof.
132 (6)Exceptasotherwiseprovidedinanoperatingagreement,anyevent
133 specifiedinthischapterorinanoperatingagreementthatcausesamemberto
134 ceasetobeassociatedwithaseriesshallnot,initself,causesuchmemberto
135 ceasetobeassociatedwithanyotherseries,terminatethecontinued
136 membershipofamemberinthelimitedliabilitycompany,orcausethe
137 terminationoftheseries,regardlessofwhethersuchmemberwasthelast
138 remainingmemberassociatedwithsuchseries.
139 (7)Anoperatingagreementmayimposerestrictions,duties,and
140 obligationsonmembersofthelimitedliabilitycompanyoranyseriesthereof
141 asamatterofinternalgovernance,including,withoutlimitation,thosewith
142 regardto:
143 (a)Choiceoflaw,forumselection,orconsenttopersonaljurisdiction;
144 (b)Capitalcontributions;
145 (c)Restrictionson,ortermsandconditionsof,thetransferof
146 membershipinterests;
147 (d)Restrictivecovenants,includingnoncompetition,nonsolicitation,
148 andconfidentialityprovisions;
149 (e)Fiduciaryduties;and
150 (f)Restrictions,duties,orobligationstoorforthebenefitofthe
151 limitedliabilitycompany,otherseriesthereof,ortheiraffiliates.
152 6.(1)Ifalimitedliabilitycompanywiththeabilitytoestablishseries
153 doesnotregistertodobusinessinaforeignjurisdictionforitselfanditsseries,
154 aseriesofalimitedliabilitycompanymayitselfregistertodobusinessasa
HCSSSSCSSBs3&69 150 155 limitedliabilitycompanyintheforeignjurisdictioninaccordancewiththe
156 lawsoftheforeignjurisdiction.
157 (2)Ifaforeignlimitedliabilitycompany,aspermittedinthe
158 jurisdictionofitsorganization,hasestablishedaserieshavingseparaterights,
159 powers,ordutiesandhaslimitedtheliabilitiesofsuchseriessothatthedebts,
160 liabilities,andobligationsincurred,contractedfor,orotherwiseexistingwith
161 respecttoaparticularseriesareenforceableagainsttheassetsofsuchseries
162 only,andnotagainsttheassetsofthelimitedliabilitycompanygenerallyor
163 anyotherseriesthereof,orsothatthedebts,liabilities,obligations,and
164 expensesincurred,contractedfor,orotherwiseexistingwithrespecttothe
165 limitedliabilitycompanygenerallyoranyotherseriesthereofarenot
166 enforceableagainsttheassetsofsuchseries,thenthelimitedliability
167 company,onbehalfofitselforanyofitsseries,oranyofitsseriesonitsown
168 behalfmayregistertodobusinessinthisstateinaccordancewiththischapter.
169 Thelimitationofliabilityshallalsobestatedontheapplicationfor
170 registration.Asrequiredundersection347.153,theregistrationapplication
171 filedshallidentifyeachseriesbeingregisteredtodobusinessinthestateby
172 thelimitedliabilitycompany.Unlessotherwiseprovidedintheoperating
173 agreement,thedebts,liabilities,andobligationsincurred,contractedfor,or
174 otherwiseexistingwithrespecttoaparticularseriesofsuchaforeignlimited
175 liabilitycompanyshallbeenforceableagainsttheassetsofsuchseriesonly
176 andnotagainsttheassetsoftheforeignlimitedliabilitycompanygenerallyor
177 anyotherseriesthereof,andnoneofthedebts,liabilities,obligations,and
178 expensesincurred,contractedfor,orotherwiseexistingwithrespecttosucha
179 foreignlimitedliabilitycompanygenerallyoranyotherseriesthereofshallbe
180 enforceableagainsttheassetsofsuchseries.
181 7.Nothinginsections347.039,347.153,or347.186shallbeconstrued
182 toalterexistingMissouristatuteorcommonlawprovidinganycauseofaction
183 forfraudulentconveyance,includingbutnotlimitedtochapter428,orany
184 reliefavailableunderexistinglawthatpermitsachallengetolimitedliability.]
[347.187.1.Alimitedliabilitycompanycreatedpursuanttosections
2 347.010to347.187orenteringthestatepursuanttosections347.010to
3 347.187anditsauthorizedpersons,ortheirequivalent,shallhavethedutyto
4 withholdandpaysuchtaxesasareimposedbythelawsofthisstateorany
5 politicalsubdivisionthereofonabasisconsistentwithsuchlimitedliability
6 company'sclassificationpursuanttoSection7701oftheInternalRevenue
7 Codeof1986,asamended.
8 2.Solelyforthepurposesofchapter143,chapter144,andchapter
9 288,alimitedliabilitycompanyanditsmembersshallbeclassifiedandtreated
10 onabasisconsistentwiththelimitedliabilitycompany'sclassificationfor
11 federalincometaxpurposes.]
[347.189.Anylimitedliabilitycompanythatownsandrentsorleases
2 realproperty,orownsunoccupiedrealproperty,locatedwithinanyhomerule
3 citywithapopulationofmorethanfourhundredthousandinhabitantswhichis
4 locatedinmorethanonecounty,shallfilewiththatcity'sclerkanaffidavit
5 listingthenameandaddressofatleastoneperson,whohasmanagement
HCSSSSCSSBs3&69 151 6 controlandresponsibilityfortherealpropertyownedandleasedorrentedby
7 thelimitedliabilitycompany,orownedbythelimitedliabilitycompanyand
8 unoccupied.]
[536.303.1.Foranyproposedrulesthataffectsmallbusiness,the
2 agencyshallalsosubmitasmallbusinessstatementtotheboardafterapublic
3 hearingisheld.Thissectionshallnotapplytoemergencyrules.Thesmall
4 businessstatementrequiredbythissectionshallprovidethefollowing
5 information:
6 (1)Adescriptionofhowtheopinionsorcommentsfromaffected
7 smallbusinessesweresolicited;
8 (2)Asummaryofthepublicandsmallbusinesscomments;
9 (3)Asummaryoftheagency'sresponsetothosecomments;and
10 (4)Thenumberofpersonswhoattendedthepublichearing,testifiedat
11 thehearing,andsubmittedwrittencomments.
12 2.Ifarequesttochangetheproposedrulewasmadeatthehearingina
13 waythataffectedsmallbusiness,astatementofthereasonsforadoptingthe
14 proposedrulewithouttherequestedchangeshallbeincludedinthesmall
15 businessstatement.]
[536.305.1.Thereisherebyestablishedthe"SmallBusiness
2 RegulatoryFairnessBoard".Thedepartmentofeconomicdevelopmentshall
3 providestaffsupportfortheboard.
4 2.Theboardshallbecomposedofninemembersappointedinthe
5 followingmanner:
6 (1)Onememberwhoisthechairoftheminoritybusinessadvocacy
7 commission;
8 (2)Onememberappointedbythepresidentprotemporeofthesenate;
9 (3)Onememberappointedbytheminorityleaderofthesenate;
10 (4)Onememberappointedbythespeakerofthehouseof
11 representatives;
12 (5)Onememberappointedbytheminorityleaderofthehouseof
13 representatives;and
14 (6)Fourmembersappointedbythegovernor.
15 3.Eachmemberoftheboard,exceptforthepublicmembersandthe
16 chairoftheminoritybusinessadvocacycommission,shallbeacurrentor
17 formerownerorofficerofasmallbusiness.Allmembersoftheboardshall
18 representavarietyofsmallbusinesses,bothruralandurban,andbefroma
19 varietyofgeographicalareasofthisstate,providedthatnomorethantwo
20 membersshallrepresentthesametypeofsmallbusiness.
21 4.Membersoftheboardshallserveatermofthreeyearsandmaybe
22 reappointedattheconclusionoftheterm.Nomembershallservemorethan
23 threeconsecutiveterms.Appointmentsshallbemadesothatone-thirdofthe
24 membershipoftheboardshallterminateeachyear.Thegovernorshall
25 appointtheinitialchairpersonoftheboardandamajorityoftheboardshall
26 electsubsequentchairpersons.Thechairpersonshallserveaschairforaterm
27 ofnotmorethantwoyears.
HCSSSSCSSBs3&69 152 28 5.Membersoftheboardshallservewithoutcompensation,butmaybe
29 reimbursedforreasonableandnecessaryexpensesrelatingtotheir
30 performanceofduties,accordingtotherulesandregulationsoftravel
31 issuedbytheofficeofadministration.Memberswillberequiredtosubmitan
32 expenseaccountforminordertoobtainreimbursementforexpensesincurred.
33 6.Theboardshallmeetasoftenasnecessary,asdeterminedbythe
34 chairpersonoftheboard.Allmeetingsoftheboardwillbeconductedin
35 accordancewiththegovernmentalbodiesandrecordsact,chapter610,
36 includingclosedsessions.Noticewillbepostedandwillbeprovidedtothe
37 jointcommitteeonadministrativerules.Minutesofthemeetingsshallbe
38 providedtoallmembers,theofficeofthegovernor,andthejointcommitteeon
39 administrativerules.
40 7.Inadditiontoanyotherpowersprovidedbysections536.300to
41 536.328,theboardmayadoptanyrulesnecessarytoimplementsections
42 536.300to536.328andtakeanyactionnecessarytoeffectuatethepurposesof
43 sections536.300to536.328.Anyruleorportionofarule,asthattermis
44 definedinsection536.010,thatiscreatedundertheauthoritydelegatedinthis
45 sectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallof
46 theprovisionsofthischapterand,ifapplicable,section536.028.Thissection
47 andthischapterarenonseverableandifanyofthepowersvestedwiththe
48 generalassemblypursuanttothischaptertoreview,todelaytheeffectivedate,
49 ortodisapproveandannularulearesubsequentlyheldunconstitutional,then
50 thegrantofrulemakingauthorityandanyruleproposedoradoptedafter
51 August28,2005,shallbeinvalidandvoid.]
[536.310.1.Theboardshall:
2 (1)Providestateagencieswithinputregardingrulesthatadversely
3 affectsmallbusinesses;
4 (2)Solicitinputandconducthearingsfromsmallbusinessownersand
5 stateagenciesregardinganyrulesproposedbyastateagency;and
6 (3)Provideanevaluationreporttothegovernorandthegeneral
7 assembly,includinganyrecommendationsandevaluationsofstateagencies
8 regardingregulatoryfairnessforMissouri'ssmallbusinesses.Thereportshall
9 includecommentsfromsmallbusinesses,stateagencyresponses,anda
10 summaryofanypublictestimonyonrulesbroughtbeforetheboardfor
11 consideration.
12 2.Inanyinquiryconductedbytheboardbecauseofarequestfroma
13 smallbusinessowner,theboardmaymakerecommendationstothestate
14 agency.Iftheboardmakesrecommendations,suchrecommendationsshallbe
15 basedonanyofthefollowinggrounds:
16 (1)Therulecreatesanunduebarriertotheformation,operation,and
17 expansionofsmallbusinessesinamannerthatsignificantlyoutweighsthe
18 rule'sbenefitstothepublic;or
19 (2)Neworsignificanteconomicinformationindicatestheproposed
20 rulewouldcreateanundueimpactonsmallbusinesses;or
21 (3)Technology,economicconditions,orotherrelevantfactors
22 justifyingthepurposefortherulehaschangedornolongerexists;or
HCSSSSCSSBs3&69 153 23 (4)IftherulewasadoptedafterAugust28,2004,whethertheactual
24 effectonsmallbusinesseswasnotreflectedinorsignificantlyexceededthe
25 smallbusinessimpactstatementsubmittedpriortotheadoptionoftherules.
26 3.Subjecttoappropriations,byamajorityvoteoftheboard,theboard
27 mayhireaone-halffull-timeequivalentemployeeforclericalsupportanda
28 full-timeequivalentemployeewithtotalsalariesfundedfromthedepartment
29 ofeconomicdevelopmentappropriationsuptoonehundredfiftythousand
30 dollarsadjustedannuallyforinflationforprofessionalpositionsto:
31 (1)Conductinternetwebsiteadditions,corrections,anddeletions;
32 (2)Developtrainingprogramsforagencies;
33 (3)Sendregulatoryalertstointerestedsmallbusinesssubscribers;
34 (4)Tracksmallbusinesscommentsregardingagenciesandreviewand
35 respondtotheagencyandsmallbusinessaccordingly;
36 (5)Prepareforboardmeetingsandhearings,includingoutreach,
37 travel,agendas,andminutes;
38 (6)Preparemembermaintenanceexpensereportsandappointments;
39 (7)Analyzesmallbusinessimpactstatements.Aftersuchanalysis,the
40 employeeshallreviewsuchstatements,offersuggestions,andworkwith
41 agenciestomeetthestatuterequirements;
42 (8)Analyzebiannualreportreviews;
43 (9)Conductagencycorrespondenceandtraining;
44 (10)Conductsmallbusinessoutreachbyspeakingatchamberand
45 associationevents;
46 (11)ReviewtheMissouriRegisterandothersourcestolookfor
47 proposedrulesthatmayaffectsmallbusiness.
48 4.Subjecttoappropriations,theboardmayreceiveadditionalfunds
49 for:
50 (1)Upkeepofitsinternetwebsite;
51 (2)Informationtechnology;
52 (3)Mileageforboardmembers;
53 (4)Publication,printing,anddistributionofannualreports;
54 (5)Outreachcosts;and
55 (6)Expensesandequipmentfortheoneandone-halffull-time
56 equivalentemployeeoftheboard.
57 5.Amajorityvoteoftheboardmembersshallberequiredforthe
58 hiring,retention,andterminationofboardemployees.Alldutiesofboard
59 employeesshallbededicatedsolelytothesupportofandforthefurtheranceof
60 thepurposeandmissionoftheboard.]
[536.315.Anystateagencyreceivingrecommendationsfromthe
2 boardshallpromptlyconsidersuchrecommendationsandmayfilearesponse
3 withtheboardwithinsixtydaysofreceivingtheboard'srecommendations.If
4 thestateagencydeterminesthatnoactionshallbetakenontheboard's
5 recommendations,theagencyshouldexplainitsreasonsforitsdetermination.
6 Ifthestateagencydeterminesthattheboard'srecommendationsmerit
7 adoption,amendmentorrepealofarule,theagencyshouldindicatethisinits
8 response.]
HCSSSSCSSBs3&69 154 [536.323.1.Inadditiontothebasisforfilingapetitionprovidedin
2 section536.041,anyaffectedsmallbusinessmayfileawrittenpetitionwith
3 theagencythathasadoptedrulesobjectingtoallorpartofanyruleaffecting
4 smallbusinessonanyofthefollowinggrounds:
5 (1)Theactualeffectonsmallbusinesswasnotreflectedinor
6 significantlyexceededthesmallbusinessimpactstatementsubmittedpriorto
7 theadoptionoftherules;
8 (2)Thesmallbusinessimpactstatementdidnotconsidernewor
9 significanteconomicinformationthatrevealsanundueimpactonsmall
10 business;or
11 (3)Theimpactswerenotpreviouslyconsideredatthepublichearing
12 ontherules.
13 2.ForanyruleadoptedpriortoAugust28,2005,anaffectedsmall
14 businessmayfileawrittenpetitionwiththeagencythatadoptedtherule
15 objectingtoallorpartofanyruleaffectingsmallbusinessonanyofthe
16 followinggrounds:
17 (1)Therulecreatesanunduebarriertotheformation,operation,and
18 expansionofsmallbusinessesinamannerthatsignificantlyoutweighsthe
19 rule'sbenefittothepublic;
20 (2)Theruleduplicates,overlaps,orconflictswithrulesadoptedbythe
21 agencyoranyotheragencyorviolatesthesubstantiveauthorityunderwhich
22 therulewasadopted;or
23 (3)Thetechnology,economicconditions,orotherrelevantfactors
24 justifyingthepurposefortherulehaschangedornolongerexist.
25 3.Uponsubmissionofthepetition,theagencyshallforwardacopyof
26 thepetitiontotheboardandthejointcommitteeonadministrativerules,as
27 requiredbysection536.041,asnotificationofapetitionfiledundersections
28 536.300to536.328.Theagencyshallpromptlyconsiderthepetitionandmay
29 seekadviceandcounselregardingthepetition.Withinsixtydaysafterthe
30 receiptofthepetition,theagencyshalldeterminewhethertheimpact
31 statementorpublichearingaddressedtheactualandsignificantimpacton
32 smallbusiness.Theagencyshallsubmitawrittenresponseoftheagency's
33 determinationtotheboardwithinsixtydaysofthereceiptofthepetition.If
34 theagencydeterminesthatthepetitionmeritstheadoption,amendment,or
35 repealofarule,itmayinitiateproceedingsinaccordancewiththeapplicable
36 requirementsofthischapter.
37 4.Iftheagencydeterminesthatthepetitiondoesnotmeritthe
38 adoption,amendment,orrepealofarule,anyaffectedsmallbusinessmay
39 seekareviewofthedecisionbytheboard.Theboardmayconveneahearing
40 orbyothermeanssolicittestimonythatwillassistinitsdeterminationof
41 whethertorecommendthattheagencyinitiateproceedingsinaccordancewith
42 thischapter.ForrulesadoptedafterAugust28,2005,theboardshallbaseits
43 recommendationsonanyofthefollowingreasons:
44 (1)Theactualeffectonsmallbusinesswasnotreflectedinor
45 significantlyexceededtheimpactstatementsubmittedpriortotheadoptionof
46 therule;
47 (2)Theimpactstatementdidnotconsiderneworsignificanteconomic
48 informationthatrevealsanundueimpactonsmallbusiness;
HCSSSSCSSBs3&69 155 49 (3)Suchimpactswerenotpreviouslyconsideredbytheagency;or
50 (4)Suchimpactswerenotpreviouslyconsideredatthepublichearing
51 ontherules.
52 5.ForrulesadoptedpriortoAugust28,2005,theboardshallbaseits
53 recommendationsonanyofthefollowingreasons:
54 (1)Therulescreatedanunduebarriertotheformation,operation,and
55 expansionofsmallbusinessesinamannerthatsignificantlyoutweighsits
56 benefittothepublic;
57 (2)Therulesduplicate,overlap,orconflictwithrulesadoptedbythe
58 agencyoranyotheragencyorviolatethesubstantiveauthorityunderwhich
59 theruleswereadopted;or
60 (3)Thetechnology,economicconditions,orotherrelevantfactors
61 justifyingthepurposefortheruleshavechangedornolongerexist.
62 6.Theboardshallmakeanevaluationreporttothegovernorandthe
63 generalassemblyonrulemakingproceedings,commentsfromsmallbusiness,
64 andagencyresponseasprovidedinthissection.Thegovernororgeneral
65 assemblymaysubsequentlytakesuchactioninresponsetotheevaluation
66 reportandagencyresponseastheyfindappropriate.]
[536.325.1.Theboardshallprovidetotheheadofeachagencyalist
2 ofanyrulesadoptedbytheagencythataffectsmallbusinessandhave
3 generatedcomplaintsorconcerns,includinganyrulesthattheboard
4 determinesmayduplicate,overlap,orconflictwithotherrulesorexceed
5 statutoryauthority.Withinforty-fivedaysafterbeingnotifiedbytheboardthe
6 listofrulesadopted,theagencyshallsubmitawrittenreporttotheboardin
7 responsetothecomplaintsorconcerns.Theagencyshallalsostatewhether
8 theagencyhasconsideredthecontinuedneedfortherulesandthedegreeto
9 whichtechnology,economicconditions,andotherrelevantfactorsmayhave
10 diminishedoreliminatedtheneedformaintainingtherules.
11 2.Theboardmaysolicittestimonyfromthepublicatapublicmeeting
12 regardinganyreportsubmittedbytheagencyunderthissectionorsection
13 536.175.Theboardshallelectronicallysubmitanevaluationreporttothe
14 governorandthegeneralassemblyregardingsmallbusinesscomments,
15 agencyresponse,andpublictestimonyonrulesinthissectionandthereport
16 shallbemaintainedontheboard'swebsite.Thegovernorandthegeneral
17 assemblymaytakesuchactioninresponsetothereportastheyfind
18 appropriate.]
[536.328.Foranyregulationsubjecttosections536.300to536.328,a
2 smallbusinessthatisadverselyaffectedoraggrievedbyfinalagencyactionis
3 entitledtojudicialreviewofagencycompliancewiththerequirementsof
4 sections536.300to536.328.Judicialreviewshallbecommencedinthe
5 circuitcourtofthecountyinwhichthesmallbusinesshasitsprimaryplaceof
6 business,orinColeCounty.Ifthesmallbusinessdoesnothaveaprimary
7 placeofbusinessinthestate,propervenueshallbeinColeCounty.
8 Notwithstandinganyprovisionsofthischaptertothecontrary,anaffected
9 smallbusinessmayseeksuchjudicialreviewduringtheperiodbeginningon
10 thedatetheproposedrulebecomesfinalandendingoneyearlater.]
HCSSSSCSSBs3&69 156 SectionB.Theenactmentofsection407.205ofthisactshallbecomeeffectiveon
2July1,2024.
âś”
HCSSSSCSSBs3&69 157