Bill Summary for S 546 (2023-2024)

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Summary date: 

Apr 4 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 546 (Public) Filed Tuesday, April 4, 2023
AN ACT TO CREATE SPECIAL ECONOMIC INTEREST OWNERS OF LIMITED LIABILITY COMPANIES AND TO GRANT THEM INFORMATION RIGHTS AND STANDING TO SEEK JUDICIAL DISSOLUTION, TO CHANGE THE PROCESS FOR ESTABLISHING PATERNITY OF CHILDREN BORN OUT OF WEDLOCK, AND TO DENY ALIMONY TO A DEPENDENT SPOUSE FOR ENGAGING IN COHABITATION AND TO DENY POSTSEPARATION SUPPORT TO A DEPENDENT SPOUSE THAT ENGAGES IN ILLICIT SEXUAL ACTS OR COHABITATION.
Intro. by Sawrey.

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Bill summary

Amends GS 57D-1-03, the definitions provisions of the NC Limited Liability Company Act to add defined term special economic interest owner, which means a person who owns an economic interest and, as provided in GS 57D-3-02 (cessation of LLC membership), has rights to information and to seek dissolution but is not a member. Makes conforming changes to defined terms economic interest owner and interest owner to include a special economic interest owner among the definitions of those terms. 

Amends GS 57D-3-02 to delineate two types of interest that arise when a person ceases to become a member. First, if a person ceases to become a member of the LLC because they are a debtor in bankruptcy; execute an assignment for the benefit of creditors under applicable law; or has a general receiver appointed for them or a trustee, receiver, or liquidator appointed for the liquidation of their property, then the person becomes an economic interest owner. If an individual dies or is adjudicated by a court of competent jurisdiction as incompetent then the member's estate or the member through the  member's designated agent or court-appointed guardian will automatically become a special economic interest owner entitled to (1) the economic interest attributable to the member's ownership interest; (2) the member's information rights; and (3) the member's standing to seek judicial dissolution or under an alternative remedy, if applicable, in the operating agreement. Makes organizational changes and terms gender neutral.

Effective October 1, 2023, and applies to requests for information and actions for dissolution commenced on or after that date.