The Florida Senate

608.4237  Membership termination upon events of bankruptcy.--A person ceases to be a member of a limited liability company upon the occurrence of any of the following:

(1)  Unless otherwise provided in the articles of organization or operating agreement, or with the written consent of all members, a member:

(a)  Makes an assignment for the benefit of creditors;

(b)  Files a voluntary petition in bankruptcy;

(c)  Is adjudged a bankrupt or insolvent, or has entered against the member an order for relief, in any bankruptcy or insolvency proceeding;

(d)  Files a petition or answer seeking for herself or himself any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation;

(e)  Files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against the member in any proceeding of this nature; or

(f)  Seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of the member or of all or any substantial part of the member's properties; or

(2)  Unless otherwise provided in the articles of organization or operating agreement, or with the written consent of all members, 120 days after the commencement of any proceeding against the member seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation, if the proceeding has not been dismissed, or if within 90 days after the appointment without the member's consent or acquiescence of a trustee, receiver, or liquidator of the member or of all or any substantial part of the member's properties, the appointment is not vacated or stayed, or within 90 days after the expiration of any such stay, the appointment is not vacated.

History.--s. 1, ch. 99-315; s. 12, ch. 2000-159.