2025 Session
Last amended: 2014 session
§ 322C.0403 — Liability for Contributions
Plain-Language Summary
In a member-managed LLC, all members have equal rights in management. In a manager-managed LLC, managers run the business and members have limited management rights.
322C.0403 LIABILITY FOR CONTRIBUTIONS.
§
Subdivision 1.Impracticability no excuse.
A person’s obligation to make a contribution to a limited liability company is not excused by the person’s death, disability, or other inability to perform personally. If a person does not make a required contribution, the person or the person’s estate is obligated to contribute money equal to the value of the part of the contribution which has not been made, at the option of the company. §
Subd. 2.Creditor enforcement.
A creditor of a limited liability company which extends credit or otherwise acts in reliance on an obligation described in subdivision 1 may enforce the obligation.
History:
History: History:
2014 c 157 art 1 s 32
Practical Notes
In a member-managed LLC, all members share management duties equally. In a manager-managed LLC, the managers make the business decisions.