Vermont § 4055 - Sharing of profits and losses and right to distributions
Full text of Vermont Vermont Statutes Online § 4055 — Sharing of profits and losses and right to distributions, with citation guidance and answers to common questions.
§ 4055. Sharing of profits and losses and right to distributions
- (a) The profits and losses of a limited liability company shall be allocated among the
members or the holders of distributional interests, as the case may be, in proportion
to the agreed value, as stated in the limited liability company records required to
be kept under this chapter, of the contributions made by each member, taking into
account variations in the capital contributions of each member during the period for
which such allocations are made. (b) Any distributions made by a limited liability company before its dissolution and winding
up shall be made among the members or the holders of distributional interests, as
the case may be, in proportion to the agreed value of the contributions made by each
member as of the date of such distribution. (c)(1) A member has a right to a distribution before the dissolution and winding up of a
limited liability company only if the company decides to make an interim distribution. (2) A person’s dissociation does not entitle the person to a distribution. (d) A member has no right to receive, and may not be required to accept, a distribution
in kind. (e) 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. (Added 2015, No. 17, § 2.)
Source: official Vermont text · Last verified 2026-08-27
Frequently Asked Questions About Vermont § 4055
What does Vermont Statutes Online § 4055 cover?
Section 4055 ("Sharing of profits and losses and right to distributions") is part of the Vermont Statutes Online, the codified statutory law of Vermont. 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 Vermont § 4055?
A common citation format is "Vermont Statutes Online § 4055" (Vermont). 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 Vermont law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Vermont official source linked on this page or consult a licensed Vermont attorney.
How does Vermont § 4055 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Vermont 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 Vermont.