{"id":10038,"date":"2018-05-09T09:05:52","date_gmt":"2018-05-09T16:05:52","guid":{"rendered":"https:\/\/www.keytlaw.com\/azllclaw\/?page_id=10038"},"modified":"2018-05-23T13:15:51","modified_gmt":"2018-05-23T20:15:51","slug":"ars-section-29-3601","status":"publish","type":"page","link":"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3601\/","title":{"rendered":"ARS Section 29-3601 Power to Dissociate as member; Wrongful Dissociation"},"content":{"rendered":"

A. A person has the power to dissociate as a member at any time, rightfully or wrongfully, by withdrawing as a member by express will under Section 29-3602<\/a>.1.<\/p>\n

B. A person’s dissociation as a member is wrongful only if the dissociation either:<\/p>\n

1. is in breach of an express provision of the operating agreement.<\/p>\n

2. occurs before the completion of the winding up of the limited liability company and either:<\/p>\n

(a) the person is expelled as a member by judicial order under Section 29-3602<\/a>.5.<\/p>\n

(b) the person is dissociated under Section 29-3602<\/a>.7.<\/p>\n

C. A person that wrongfully dissociates as a member is liable to the limited liability company and, subject to Section 29-3806<\/a>.D, to the other members for damages caused by the dissociation.\u00a0 The liability is in addition to any debt, obligation or other liability of the member to the company or the other members.\u00a0 The company may offset its damages against any amount otherwise distributable to the person.<\/p>\n

Note<\/strong>:\u00a0 As of September 1, 2020, this statute applies to all Arizona LLCs .\u00a0 The text above shows the statute as of January 1, 2025.\u00a0 To see if the Arizona legislature modified this statute after January 1, 2025, go the the Arizona legislature's website for Title 29, Chapter 7<\/a>.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"

A. A person has the power to dissociate as a member at any time, rightfully or wrongfully, by withdrawing as a member by express will under Section 29-3602.1. B. A person’s dissociation as a member is wrongful only if the dissociation either: 1. is in breach of an express provision of the operating agreement. 2. occurs before the completion of the winding up of the limited liability company and either: (a) the person is expelled as a member by judicial order under Section 29-3602.5. (b) the person is dissociated under Section 29-3602.7. C. A person that wrongfully dissociates as a member is liable to the limited liability company and, subject to Section 29-3806.D, to the other members for damages caused by the dissociation.\u00a0 The liability is in addition to any debt, obligation or other liability of the member to the company or the other members.\u00a0 The company may offset its damages against any amount otherwise distributable to the person.<\/p>\n","protected":false},"author":158,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"om_disable_all_campaigns":false,"footnotes":""},"class_list":["post-10038","page","type-page","status-publish","hentry"],"yoast_head":"\nARS Section 29-3601 Power to Dissociate as member; Wrongful Dissociation - Arizona LLC Law<\/title>\n<meta name=\"description\" content=\"The complete text of Arizona Revised Statutes Section 29-3601 of Arizona's new LLC law that is effective September 1, 2019.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3601\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ARS Section 29-3601 Power to Dissociate as member; 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