A. Any distribution made by a limited liability company before its dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the extent necessary to comply with a transfer effective under Section 29-3502 or charging order in effect under Section 29-3503.
B. A person has a right to a distribution before the dissolution and winding up of a limited liability company only if the company decides to make an interim distribution. A person’s dissociation does not entitle the person to a distribution.
C. A person does not have a right to demand or receive a distribution from a limited liability company in any form other than money. except as otherwise provided in Section 29-3707.D, A company may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person’s share of distributions.
D. If a member or transferee becomes entitled to receive a distribution, the member or transferee has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution. However, the company’s obligation to make a distribution is subject to offset for any amount owed to the company by the member or a person dissociated as a member on whose account the distribution is made.
Note: As of September 1, 2020, this statute applies to all Arizona LLCs . The text above shows the statute as of January 31, 2021. To see if the Arizona legislature modified this statute after January 31, 2021, go the the Arizona legislature's website for Title 29, Chapter 7.