Full text of Utah Utah Code § 16-20-602 — Events causing dissociation. (Effective 10/1/2026), with citation guidance and answers to common questions.
§ 16-20-602. Events causing dissociation. (Effective 10/1/2026)
Effective 10/1/2026
16-20-602.
Events causing dissociation.
A person is dissociated as a member when:
| (1) | the limited liability company has notice of the person's express will to withdraw as a member, but, if the person specified a withdrawal date later than the date the limited liability company had notice, on that later date; |
| (2) | an event stated in the operating agreement as causing the person's dissociation occurs; |
| (3) | the person's entire interest is transferred in a foreclosure sale under Subsection 16-20-503(6); |
| (4) | the person is expelled as a member in accordance with the operating agreement; |
| (5) | the person is expelled as a member by the unanimous consent of the other members if:
| (a) | it is unlawful to carry on the limited liability company's activities and affairs with the person as a member; |
| (b) | there has been a transfer of all the person's transferable interest in the limited liability company, other than:
| (i) | a transfer for security purposes; or |
| (ii) | a charging order in effect under Section 16-20-503 which has not been foreclosed; |
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| (c) | the person is a corporation, and:
| (i) | the limited liability company notifies the person that the person will be expelled as a member because the person has filed a statement of dissolution or the equivalent, the person's charter has been revoked, or the person's right to conduct business has been suspended by the jurisdiction of the person's incorporation; and |
| (ii) | not later than 90 days after the notification the statement of dissolution or the equivalent has not been revoked or the person's charter or right to conduct business has not been reinstated; or |
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| (d) | the person is an unincorporated entity that has been dissolved and whose business is being wound up; |
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| (6) | on application by the limited liability company or a member in a direct action under Section 16-20-801, the person is expelled as a member by judicial order because the person:
| (a) | has engaged or is engaging in wrongful conduct that has affected adversely and materially, or will affect adversely and materially, the limited liability company's activities and affairs; |
| (b) | has committed willfully or persistently, or is committing willfully or persistently, a material breach of the operating agreement or a duty or obligation under Section 16-20-409; or |
| (c) | has engaged or is engaging in conduct relating to the limited liability company's activities and affairs which makes it not reasonably practicable to carry on the activities and affairs with the person as a member; |
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| (7) | in the case of an individual:
| (a) | the individual dies; or |
| (b) | in a member-managed limited liability company:
| (i) | a guardian or general conservator for the individual is appointed; or |
| (ii) | a court orders that the individual has otherwise become incapable of performing the individual's duties as a member under this chapter or the operating agreement; |
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| (8) | in a member-managed limited liability company, the person:
| (a) | becomes a debtor in bankruptcy; |
| (b) | executes an assignment for the benefit of creditors; or |
| (c) | seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of the person or of all or substantially all the person's property; |
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| (9) | in the case of a person that is a testamentary or inter vivos trust or is acting as a member by virtue of being a trustee of such a trust, the trust's entire transferable interest in the limited liability company is distributed; |
| (10) | in the case of a person that is an estate or is acting as a member by virtue of being a personal representative of an estate, the estate's entire transferable interest in the limited liability company is distributed, but not merely by reason of substitution of a successor personal representative; |
| (11) | in the case of a person that is not an individual, corporation, unincorporated entity, trust, or estate, the existence of the person terminates; |
| (12) | the limited liability company participates in a merger under Chapter 1a, Part 7, Merger, and:
| (a) | the limited liability company is not the surviving entity; or |
| (b) | otherwise as a result of the merger, the person ceases to be a member; |
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| (13) | the limited liability company participates in an interest exchange under Chapter 1a, Part 8, Interest Exchange, and, as a result of the interest exchange, the person ceases to be a member; |
| (14) | the limited liability company participates in a conversion under Chapter 1a, Part 9, Conversion; |
| (15) | the limited liability company participates in a domestication under Chapter 1a, Part 10, Domestication, and, as a result of the domestication, the person ceases to be a member; or |
| (16) | the limited liability company dissolves and completes winding up. |
Renumbered and Amended by Chapter
93, 2026 General Session
Frequently Asked Questions About Utah § 16-20-602
What does Utah Code § 16-20-602 cover?
Section 16-20-602 ("Events causing dissociation. (Effective 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 § 16-20-602?
A common citation format is "Utah Code § 16-20-602" (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 § 16-20-602 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.
