Effect of a member's dissociation

(a) A limited liability company does not dissolve and wind up its business as result of a member's dissociation. (b) Upon a member's dissociation from a limited liability company: (1) The member's right to participate in the management and conduct of the company's business terminates, except as otherwise provided in § 47-34A-803 , and the member ceases to be a member and is treated the same as a transferee of a member; (2) The member's duty of loyalty under § 47-34A-409(b)(3) terminates; and (3) The member's duty of loyalty under § 47-34A-409(b)(1) and (2) and duty of care under § 47-34A-409(c) continue only with regard to matters arising and events occurring before the member's dissociation. Source: SL 1998, ch 272, § 603.