Section 10-12-41 Distribution of assets upon dissolution. - Alabama Statutes

Section 10-12-41

Distribution of assets upon dissolution.

Upon the winding up of a limited liability company, the assets of the limited liability company shall be distributed in the following order of priority:

(1) To creditors (including members who are creditors to the extent allowed by Section 10-12-19 or otherwise permitted by law), in order of priority as provided by law, except those liabilities to members of the limited liability company for interim distributions or on account of their contributions.

(2) Except as otherwise provided in the articles of organization or the operating agreement, to members of the limited liability company and former members for interim distributions and in respect of their contributions.

(3) Except as otherwise provided in the articles of organization or the operating agreement, to members first for the return of their contributions and second with respect to their interests in the limited liability company, in the proportions in which the members share in distributions.

(Acts 1993, No. 93-724, p. 1425, §41.)