13.1-1023.1 - Remedies for breach of operating agreement by member or manager. - Virginia Statutes

§ 13.1-1023.1. Remedies for breach of operating agreement by member ormanager.

A. An operating agreement may provide that:

1. A member or manager who fails to perform in accordance with, or to complywith terms and conditions of, the operating agreement shall be subject tospecified penalties or specified consequences; and

2. At the time or upon the happening of events specified in the operatingagreement, a member or manager shall be subject to specified penalties orspecified consequences.

The specified penalties or specified consequences may include and take theform of any penalty or consequence set forth in subsection D of § 13.1-1027.

B. In the articles of organization, in writing in an operating agreement orin another writing, a member or manager may consent to or be subject to thenonexclusive jurisdiction of the courts of, or arbitration in, a specifiedjurisdiction, or the exclusive jurisdiction of the courts of theCommonwealth, or the exclusivity of arbitration in a specified jurisdictionof the Commonwealth, and to be served with legal process in a mannerprescribed in the articles of organization, an operating agreement, or otherwriting.

(2003, c. 340; 2004, c. 601.)