Utah § 3a-404 - Sharing of and right to distributions before dissolution. (Renumbered 10/1/2026)
Full text of Utah Utah Code § 3a-404 — Sharing of and right to distributions before dissolution. (Renumbered 10/1/2026), with citation guidance and answers to common questions.
§ 3a-404. Sharing of and right to distributions before dissolution. (Renumbered 10/1/2026)
48-3a-404. Sharing of and right to distributions before dissolution.
| (1) | Any distributions made by a limited liability company before its dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the extent necessary to comply with a transfer effective under Section 48-3a-502 or charging order in effect under Section 48-3a-503. |
| (2) | A person has a right to a distribution before the dissolution and winding up of a limited liability company only if the limited liability company decides to make an interim distribution. A person's dissociation does not entitle the person to a distribution. |
| (3) | A person does not have a right to demand or receive a distribution from a limited liability company in any form other than money. Except as otherwise provided in Subsection 48-3a-711(4), a limited liability company may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person's share of distributions. |
| (4) | If a member or transferee becomes entitled to receive a distribution, the member or transferee has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution. However, the limited liability company's obligation to make a distribution is subject to offset for any amount owed to the limited liability company by the member or a person dissociated as a member on whose account the distribution is made. |
Renumbered and Amended by Chapter 93, 2026 General Session
Enacted by Chapter 412, 2013 General Session
Source: official Utah text · Last verified 2026-08-27
Frequently Asked Questions About Utah § 3a-404
What does Utah Code § 3a-404 cover?
Section 3a-404 ("Sharing of and right to distributions before dissolution. (Renumbered 10/1/2026)") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 3a-404?
A common citation format is "Utah Code § 3a-404" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 3a-404 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Utah.