Section 489.601 - Power to dissociate as a member - wrongful dissociation1. A person has the power to dissociate as a member at any time, rightfully or wrongfully, by withdrawing as a member by express will under section 489.602, subsection 1.2. A person's dissociation as a member is wrongful only if any of the following applies to the dissociation: a. It is in breach of an express provision of the operating agreement.b. It occurs before the completion of the winding up of the limited liability company and any of the following applies:(1) The person withdraws as a member by express will.(2) The person is expelled as a member by judicial order under section 489.602, subsection 6.(3) The person is dissociated under section 489.602, subsection 8.(4) In the case of a person that is not a trust other than a business trust, an estate, or an individual, the person is expelled or otherwise dissociated as a member because it willfully dissolved or terminated.3. A person that wrongfully dissociates as a member is liable to the limited liability company and, subject to section 489.801, to the other members for damages caused by the dissociation. The liability is in addition to any debt, obligation, or other liability of the member to the company or the other members. 2008 Acts, ch 1162, § 45, 155; 2023 Acts, ch 152, §49, 161 2023 amendment effective January 1, 2024; 2023 Acts, ch 152, §161
Amended by 2023 Iowa, ch 152, s 49, eff. 1/1/2024.2008 Acts, ch 1162, §45, 1552023 amendment effective January 1, 2024; 2023 Acts, ch 152, §161
Section amended