Vermont § 4072 - Transfer of distributional interest

§ 4072. Transfer of distributional interest

• (a) A transfer, in whole or in part, of a distributional interest: (1) is permissible; (2) does not by itself cause a member’s dissociation or a dissolution and winding up of
  the company’s activities; and (3) subject to section 4075 of this title, does not entitle the transferee to: (A) become or to exercise any rights of a member: (B) participate in the management or conduct of the company’s activities; or (C) except as otherwise provided in subsection 4073(d) of this title, have access to records or other information concerning the company’s activities. (b) A transfer of a distributional interest entitles the transferee to receive, in accordance
  with the transfer, the distributions to which the transferor would otherwise be entitled
  with respect to the interest. (c) Except as otherwise provided in subdivision 4081(4)(B) of this title, if a member transfers a distributional interest, the transferor retains the rights
  of a member other than the distributional interest transferred and retains all duties
  and obligations of a member. (d) A transfer of a distributional interest in violation of a restriction on transfer
  contained in the operating agreement is ineffective if the intended transferee has
  knowledge or notice of the restriction at the time of transfer. (Added 2015, No. 17, § 2.)