Section 17704.01 - Members(a) If a limited liability company is to have only one member upon formation, the person becomes a member as agreed by that person and the organizer of the limited liability company. That person and the organizer may be, but need not be, different persons. If different, the organizer acts on behalf of the initial member.(b) If a limited liability company is to have more than one member upon formation, those persons become members as agreed by the persons before the formation of the limited liability company. The organizer acts on behalf of the persons in forming the limited liability company and may be, but need not be, one of the persons.(c) After formation of a limited liability company, a person becomes a member as follows: (1) As provided in the operating agreement.(2) As the result of a transaction effective under Article 10 (commencing with Section 17710.01).(3) With the consent of all the members.(4) If, within 90 consecutive days after the limited liability company ceases to have any members, the last person to have been a member, or the legal representative of that person, designates a person to become a member, and the designated person consents to become a member.(d) A person may become a member without acquiring a transferable interest and without making or being obligated to make a contribution to the limited liability company.(e) Sections 406 and 407 of the Labor Code shall not apply to membership interests issued by any limited liability company or foreign limited liability company to the following persons: (1) Any employee of the limited liability company or foreign limited liability company or of any parent or subsidiary of either, pursuant to a membership interest purchase plan or agreement, or a membership interest option plan or agreement.(2) In any transaction in connection with securing employment, a person who is or is about to become an officer or a manager of the limited liability company or the foreign limited liability company or of any parent or subsidiary of either.Ca. Corp. Code § 17704.01
Amended by Stats 2015 ch 775 (AB 506),s 5, eff. 1/1/2016.Added by Stats 2012 ch 419 (SB 323),s 20, eff. 1/1/2013.