<a id="pl.1.3"></a><var>1.3</var>limited liability companies; enacting a revised uniform limited liability company <br/>
<a id="pl.1.4"></a><var>1.4</var>act; providing conforming changes;amending Minnesota Statutes 2012, sections <br/>
<a id="pl.1.5"></a><var>1.5</var>48A.03, subdivision 4; 181.970, subdivision 2; 270C.721; 273.124, subdivision <br/>
<a id="pl.1.6"></a><var>1.6</var>8; 290.01, subdivision 3b; 302A.011, by adding subdivisions; 302A.115, <br/>
<a id="pl.1.7"></a><var>1.7</var>subdivision 1; 302A.681; 302A.683; 302A.685; 302A.689; 302A.691; 308A.121, <br/>
<a id="pl.1.8"></a><var>1.8</var>subdivision 1; 308B.801, subdivisions 1, 2, 5; 308B.805, subdivision 1; <br/>
<a id="pl.1.9"></a><var>1.9</var>308B.835, subdivision 2; 317A.115, subdivision 2; 319B.02, subdivisions 3, 22; <br/>
<a id="pl.1.10"></a><var>1.10</var>319B.10, subdivision 3; 321.0108; proposing coding for new law in Minnesota <br/>
<a id="pl.1.11"></a><var>1.11</var>Statutes, chapter 302A; proposing coding for new law as Minnesota Statutes, <br/>
<a id="pl.1.12"></a><var>1.12</var>chapter 322C; repealing Minnesota Statutes 2012, sections 302A.687; 322B.01; <br/>
<a id="pl.1.13"></a><var>1.13</var>322B.02; 322B.03, subdivisions 1, 2, 3, 6, 6a, 7, 8, 10, 11, 12, 13, 14, 15, 17, <br/>
<a id="pl.1.14"></a><var>1.14</var>17a, 17b, 18, 19, 19a, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 31a, 32, 33, <br/>
<a id="pl.1.15"></a><var>1.15</var>34, 35, 36, 36a, 37, 38, 39, 40, 41, 41a, 42, 43, 44, 45, 45a, 46, 47, 48, 49, 50, 51; <br/>
<a id="pl.1.16"></a><var>1.16</var>322B.04; 322B.10; 322B.105; 322B.11; 322B.115; 322B.12, subdivisions 1, 2, <br/>
<a id="pl.1.17"></a><var>1.17</var>3, 4, 5; 322B.125; 322B.13; 322B.135; 322B.14; 322B.145; 322B.15; 322B.155; <br/>
<a id="pl.1.18"></a><var>1.18</var>322B.16; 322B.165; 322B.17; 322B.175; 322B.18; 322B.20; 322B.21; 322B.22; <br/>
<a id="pl.1.19"></a><var>1.19</var>322B.23; 322B.30; 322B.303; 322B.306; 322B.31; 322B.313; 322B.316; <br/>
<a id="pl.1.20"></a><var>1.20</var>322B.32; 322B.323; 322B.326; 322B.33; 322B.333; 322B.336; 322B.34; <br/>
<a id="pl.1.21"></a><var>1.21</var>322B.343; 322B.346; 322B.348; 322B.35; 322B.353; 322B.356; 322B.36; <br/>
<a id="pl.1.22"></a><var>1.22</var>322B.363, subdivisions 1, 2, 3, 4, 5, 6, 7; 322B.366, subdivision 1; 322B.37; <br/>
<a id="pl.1.23"></a><var>1.23</var>322B.373; 322B.376; 322B.38; 322B.383; 322B.386; 322B.40; 322B.41; <br/>
<a id="pl.1.24"></a><var>1.24</var>322B.42; 322B.43; 322B.50; 322B.51; 322B.52; 322B.53; 322B.54; 322B.55; <br/>
<a id="pl.1.25"></a><var>1.25</var>322B.56; 322B.60; 322B.603; 322B.606; 322B.61; 322B.613; 322B.616; <br/>
<a id="pl.1.26"></a><var>1.26</var>322B.62; 322B.623; 322B.626; 322B.63; 322B.633; 322B.636; 322B.64; <br/>
<a id="pl.1.27"></a><var>1.27</var>322B.643; 322B.646; 322B.65; 322B.653; 322B.656; 322B.66; 322B.663; <br/>
<a id="pl.1.28"></a><var>1.28</var>322B.666; 322B.67; 322B.673; 322B.676; 322B.679; 322B.68; 322B.683; <br/>
<a id="pl.1.29"></a><var>1.29</var>322B.686; 322B.689; 322B.69; 322B.693; 322B.696; 322B.699; 322B.70; <br/>
<a id="pl.1.30"></a><var>1.30</var>322B.71; 322B.72; 322B.73; 322B.74; 322B.75; 322B.755; 322B.76; 322B.77; <br/>
<a id="pl.1.31"></a><var>1.31</var>322B.78; 322B.80; 322B.803; 322B.806; 322B.81; 322B.813; 322B.816, <br/>
<a id="pl.1.32"></a><var>1.32</var>subdivisions 1, 2, 4, 5, 6; 322B.82; 322B.823; 322B.826; 322B.83; 322B.833; <br/>
<a id="pl.1.33"></a><var>1.33</var>322B.836; 322B.84; 322B.843; 322B.846; 322B.85; 322B.853; 322B.856; <br/>
<a id="pl.1.34"></a><var>1.34</var>322B.86; 322B.863; 322B.866; 322B.87; 322B.873, subdivisions 1, 4; 322B.876, <br/>
<a id="pl.1.35"></a><var>1.35</var>subdivision 1; 322B.88; 322B.883; 322B.90; 322B.905; 322B.91, subdivisions <br/>
<a id="pl.1.36"></a><var>1.36</var>1, 2; 322B.915; 322B.92; 322B.925; 322B.93; 322B.935; 322B.94; 322B.945; <br/>
<a id="pl.1.37"></a><var>1.37</var>322B.95; 322B.955; 322B.960, subdivisions 1, 4, 5; 322B.975.<br/>
<a id="pl.1.38"></a><var>1.38</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.4"></a><var>2.4</var>    Section 1. <b>[322C.0101] CITATION.</b><br/>
<a id="pl.2.5"></a><var>2.5</var>This chapter may be cited as the "Minnesota Revised Uniform Limited Liability <br/>
<a id="pl.2.6"></a><var>2.6</var>Company Act."<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.7"></a><var>2.7</var>    Sec. 2. <b>[322C.0102] DEFINITIONS.</b><br/>
<a id="pl.2.8"></a><var>2.8</var>    Subdivision 1. <b>Application.</b> For purposes of this chapter, the terms defined in <br/>
<a id="pl.2.9"></a><var>2.9</var>this section have the meanings given them.<br/>
<a id="pl.2.10"></a><var>2.10</var>    Subd. 2. <b>Articles of organization.</b> "Articles of organization" means the articles of <br/>
<a id="pl.2.11"></a><var>2.11</var>organization required by section 322C.0201. The term includes the articles of organization <br/>
<a id="pl.2.12"></a><var>2.12</var>as amended or restated.<br/>
<a id="pl.2.13"></a><var>2.13</var>    Subd. 3. <b>Board.</b> "Board" mean the board of governors, however designated, of a <br/>
<a id="pl.2.14"></a><var>2.14</var>board-managed limited liability company.<br/>
<a id="pl.2.15"></a><var>2.15</var>    Subd. 4. <b>Board-managed limited liability company.</b> "Board-managed limited <br/>
<a id="pl.2.16"></a><var>2.16</var>liability company" means a limited liability company that qualifies as such under section <br/>
<a id="pl.2.17"></a><var>2.17</var>322C.0407, subdivision 1.<br/>
<a id="pl.2.18"></a><var>2.18</var>    Subd. 5. <b>Contribution.</b> "Contribution" means any benefit provided by a person to a <br/>
<a id="pl.2.19"></a><var>2.19</var>limited liability company:<br/>
<a id="pl.2.20"></a><var>2.20</var>(1) in order to become a member upon formation of the company and in accordance <br/>
<a id="pl.2.21"></a><var>2.21</var>with an agreement between or among the persons that have agreed to become the initial <br/>
<a id="pl.2.22"></a><var>2.22</var>members of the company;<br/>
<a id="pl.2.23"></a><var>2.23</var>(2) in order to become a member after formation of the company and in accordance <br/>
<a id="pl.2.24"></a><var>2.24</var>with an agreement between the person and the company; or<br/>
<a id="pl.2.25"></a><var>2.25</var>(3) in the person's capacity as a member and in accordance with the operating <br/>
<a id="pl.2.26"></a><var>2.26</var>agreement or an agreement between the member and the company.<br/>
<a id="pl.2.27"></a><var>2.27</var>    Subd. 6. <b>Debtor in bankruptcy.</b> "Debtor in bankruptcy" means a person that is <br/>
<a id="pl.2.28"></a><var>2.28</var>the subject of:<br/>
<a id="pl.2.29"></a><var>2.29</var>(1) an order for relief under United States Code, title 12, or a successor statute <br/>
<a id="pl.2.30"></a><var>2.30</var>of general application; or<br/>
<a id="pl.2.31"></a><var>2.31</var>(2) a comparable order under federal, state, or foreign law governing insolvency.<br/>
<a id="pl.2.32"></a><var>2.32</var>    Subd. 7. <b>Distribution.</b> "Distribution," except as otherwise provided in section <br/>
<a id="pl.2.33"></a><var>2.33</var>322C.0405, subdivision 7, means a transfer of money or other property from a limited <br/>
<a id="pl.2.34"></a><var>2.34</var>liability company to another person on account of a transferable interest.<br/>
<a id="pl.3.1"></a><var>3.1</var>    Subd. 8. <b>Effective.</b> "Effective," with respect to a record required or permitted <br/>
<a id="pl.3.2"></a><var>3.2</var>to be filed with the secretary of state under this chapter, means effective under section <br/>
<a id="pl.3.3"></a><var>3.3</var>322C.0205, subdivision 3.<br/>
<a id="pl.3.4"></a><var>3.4</var>    Subd. 9. <b>Filed.</b> "Filed" or "filed with the secretary of state" means that a document <br/>
<a id="pl.3.5"></a><var>3.5</var>meeting the applicable requirements of this chapter, signed and accompanied by any <br/>
<a id="pl.3.6"></a><var>3.6</var>required filing fees, has been delivered to the secretary of state. The secretary of state shall <br/>
<a id="pl.3.7"></a><var>3.7</var>endorse on the original or an image thereof the word "Filed" and the month, day, and year <br/>
<a id="pl.3.8"></a><var>3.8</var>of filing, record the document or an image thereof in the Office of the Secretary of State, <br/>
<a id="pl.3.9"></a><var>3.9</var>and return a document or the image thereof to the person who delivered it for filing.<br/>
<a id="pl.3.10"></a><var>3.10</var>    Subd. 10. <b>Foreign limited liability company.</b> "Foreign limited liability company" <br/>
<a id="pl.3.11"></a><var>3.11</var>means an unincorporated entity formed under the law of a jurisdiction other than this state <br/>
<a id="pl.3.12"></a><var>3.12</var>and denominated by that law as a limited liability company.<br/>
<a id="pl.3.13"></a><var>3.13</var>    Subd. 11. <b>Governor.</b> "Governor" means a member of the board, however <br/>
<a id="pl.3.14"></a><var>3.14</var>designated, of a board-managed limited liability company.<br/>
<a id="pl.3.15"></a><var>3.15</var>    Subd. 12. <b>Limited liability company.</b> "Limited liability company," except in the <br/>
<a id="pl.3.16"></a><var>3.16</var>phrase "foreign limited liability company," means an entity formed under this chapter.<br/>
<a id="pl.3.17"></a><var>3.17</var>    Subd. 13. <b>Manager.</b> "Manager" means a person that under the operating agreement <br/>
<a id="pl.3.18"></a><var>3.18</var>of a manager-managed limited liability company is responsible, alone or in concert with <br/>
<a id="pl.3.19"></a><var>3.19</var>others, for performing the management functions stated in section 322C.0407, subdivision <br/>
<a id="pl.3.20"></a><var>3.20</var>3.<br/>
<a id="pl.3.21"></a><var>3.21</var>    Subd. 14. <b>Manager-managed limited liability company.</b> "Manager-managed <br/>
<a id="pl.3.22"></a><var>3.22</var>limited liability company" means a limited liability company that qualifies as such under <br/>
<a id="pl.3.23"></a><var>3.23</var>section 322C.0407, subdivision 1.<br/>
<a id="pl.3.24"></a><var>3.24</var>    Subd. 15. <b>Member.</b> "Member" means a person that has become a member of a <br/>
<a id="pl.3.25"></a><var>3.25</var>limited liability company under section 322C.0401 and has not dissociated under section <br/>
<a id="pl.3.26"></a><var>3.26</var>322C.0602.<br/>
<a id="pl.3.27"></a><var>3.27</var>    Subd. 16. <b>Member-managed limited liability company.</b> "Member-managed <br/>
<a id="pl.3.28"></a><var>3.28</var>limited liability company" means a limited liability company that is not a manager-managed <br/>
<a id="pl.3.29"></a><var>3.29</var>limited liability company or a board-managed limited liability company.<br/>
<a id="pl.3.30"></a><var>3.30</var>    Subd. 17. <b>Operating agreement. </b> "Operating agreement" means the agreement, <br/>
<a id="pl.3.31"></a><var>3.31</var>whether or not referred to as an operating agreement and whether oral, in a record, implied, <br/>
<a id="pl.3.32"></a><var>3.32</var>or in any combination thereof, of all the members of a limited liability company, including <br/>
<a id="pl.3.33"></a><var>3.33</var>a sole member, concerning the matters described in section 322C.0110, subdivision 1. The <br/>
<a id="pl.3.34"></a><var>3.34</var>term includes the agreement as amended or restated. <br/>
<a id="pl.3.35"></a><var>3.35</var>    Subd. 18. <b>Oppressive.</b> (a) "Oppressive," with respect to an application brought by a <br/>
<a id="pl.3.36"></a><var>3.36</var>member under section 322C.0701, subdivision 1, clause (5), item (ii), means conduct:<br/>
<a id="pl.4.1"></a><var>4.1</var>(1) engaged in by one or more:<br/>
<a id="pl.4.2"></a><var>4.2</var>(i) members in a member-managed limited liability company or who are otherwise <br/>
<a id="pl.4.3"></a><var>4.3</var>in control of any limited liability company;<br/>
<a id="pl.4.4"></a><var>4.4</var>(ii) managers in a manager-managed limited liability company; or<br/>
<a id="pl.4.5"></a><var>4.5</var>(iii) governors of a board-managed limited liability company;<br/>
<a id="pl.4.6"></a><var>4.6</var>(2) that occurs with respect to the applicant member's capacity as:<br/>
<a id="pl.4.7"></a><var>4.7</var>(i) a member, manager, or governor of a limited liability company; or<br/>
<a id="pl.4.8"></a><var>4.8</var>(ii) an employee of a limited liability company with 35 or fewer members; and<br/>
<a id="pl.4.9"></a><var>4.9</var>(3) that is unfairly prejudicial to the applicant member in a capacity listed in clause <br/>
<a id="pl.4.10"></a><var>4.10</var>(2), because the conduct frustrated an expectation of the applicant member that:<br/>
<a id="pl.4.11"></a><var>4.11</var>(i) is reasonable in light of the reasonable expectations of the other members;<br/>
<a id="pl.4.12"></a><var>4.12</var>(ii) was material to the applicant's decision to become a member of the limited <br/>
<a id="pl.4.13"></a><var>4.13</var>liability company or for a substantial time has been material during the member's <br/>
<a id="pl.4.14"></a><var>4.14</var>continuing membership;<br/>
<a id="pl.4.15"></a><var>4.15</var>(iii) was known to other members or that the other members had reason to know; and<br/>
<a id="pl.4.16"></a><var>4.16</var>(iv) is not contrary to the operating agreement as applied consistently with the <br/>
<a id="pl.4.17"></a><var>4.17</var>contractual obligation of good faith and fair dealing under section 322C.0409, subdivision <br/>
<a id="pl.4.18"></a><var>4.18</var>4.<br/>
<a id="pl.4.19"></a><var>4.19</var>(b) For the purposes of paragraph (a), conduct:<br/>
<a id="pl.4.20"></a><var>4.20</var>(1) includes words, action, inaction, and any combination of words, action, or <br/>
<a id="pl.4.21"></a><var>4.21</var>inaction; and<br/>
<a id="pl.4.22"></a><var>4.22</var>(2) is not oppressive solely by reason of a good faith disagreement as to the content, <br/>
<a id="pl.4.23"></a><var>4.23</var>interpretation, or application of the company's operating agreement.<br/>
<a id="pl.4.24"></a><var>4.24</var>    Subd. 19. <b>Organizer.</b> "Organizer" means a person that acts under section <br/>
<a id="pl.4.25"></a><var>4.25</var>322C.0201 to form a limited liability company.<br/>
<a id="pl.4.26"></a><var>4.26</var>    Subd. 20. <b>Person.</b> "Person" means an individual, corporation, business trust, estate, <br/>
<a id="pl.4.27"></a><var>4.27</var>trust, partnership, limited liability company, association, joint venture, public corporation, <br/>
<a id="pl.4.28"></a><var>4.28</var>government or governmental subdivision, agency, or instrumentality, or any other legal or <br/>
<a id="pl.4.29"></a><var>4.29</var>commercial entity.<br/>
<a id="pl.4.30"></a><var>4.30</var>    Subd. 21. <b>Principal place of business.</b> "Principal place of business" means <br/>
<a id="pl.4.31"></a><var>4.31</var>the principal executive office of a limited liability company or foreign limited liability <br/>
<a id="pl.4.32"></a><var>4.32</var>company, whether or not the office is located in this state.<br/>
<a id="pl.4.33"></a><var>4.33</var>    Subd. 22. <b>Record.</b> "Record" means information that is inscribed on a tangible <br/>
<a id="pl.4.34"></a><var>4.34</var>medium or that is stored in an electronic or other medium and is retrievable in perceivable <br/>
<a id="pl.4.35"></a><var>4.35</var>form.<br/>
<a id="pl.5.1"></a><var>5.1</var>    Subd. 23. <b>Recorded in the real property records.</b> "Recorded in the real property <br/>
<a id="pl.5.2"></a><var>5.2</var>records" means that a certified copy of a statement meeting the applicable requirements <br/>
<a id="pl.5.3"></a><var>5.3</var>of this chapter, including containing a legal description of the property affected by the <br/>
<a id="pl.5.4"></a><var>5.4</var>statement, as filed with the secretary of state, has been recorded in the office of the county <br/>
<a id="pl.5.5"></a><var>5.5</var>reorder in the county in which the real property affected by the statement is located or, if <br/>
<a id="pl.5.6"></a><var>5.6</var>the real property is registered under chapter 508 or 508A, has been recorded in the office of <br/>
<a id="pl.5.7"></a><var>5.7</var>the applicable registrar of titles and memorialized on the certificate of title for that property.<br/>
<a id="pl.5.8"></a><var>5.8</var>    Subd. 24. <b>Registered office.</b> "Registered office" means:<br/>
<a id="pl.5.9"></a><var>5.9</var>(1) the office that a limited liability company is required to designate and maintain <br/>
<a id="pl.5.10"></a><var>5.10</var>under section 322C.0113; or<br/>
<a id="pl.5.11"></a><var>5.11</var>(2) the office that a foreign limited liability company is required to designate and <br/>
<a id="pl.5.12"></a><var>5.12</var>maintain under sections 5.36 and 322C.0802.<br/>
<a id="pl.5.13"></a><var>5.13</var>    Subd. 25. <b>Sign.</b> "Sign" means, with the present intent to authenticate or adopt <br/>
<a id="pl.5.14"></a><var>5.14</var>a record:<br/>
<a id="pl.5.15"></a><var>5.15</var>(1) to execute or adopt a tangible symbol; or<br/>
<a id="pl.5.16"></a><var>5.16</var>(2) to attach to or logically associate with the record an electronic symbol, sound, <br/>
<a id="pl.5.17"></a><var>5.17</var>or process.<br/>
<a id="pl.5.18"></a><var>5.18</var>    Subd. 26. <b>State.</b> "State" means a state of the United States, the District of Columbia, <br/>
<a id="pl.5.19"></a><var>5.19</var>Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject <br/>
<a id="pl.5.20"></a><var>5.20</var>to the jurisdiction of the United States.<br/>
<a id="pl.5.21"></a><var>5.21</var>    Subd. 27. <b>Transfer.</b> "Transfer" includes an assignment, conveyance, deed, bill of <br/>
<a id="pl.5.22"></a><var>5.22</var>sale, lease, mortgage, security interest, encumbrance, gift, and transfer by operation of law.<br/>
<a id="pl.5.23"></a><var>5.23</var>    Subd. 28. <b>Transferable interest.</b> "Transferable interest" means the right, as <br/>
<a id="pl.5.24"></a><var>5.24</var>originally associated with a person's capacity as a member, to receive distributions from a <br/>
<a id="pl.5.25"></a><var>5.25</var>limited liability company in accordance with the operating agreement, whether or not the <br/>
<a id="pl.5.26"></a><var>5.26</var>person remains a member or continues to own any part of the right.<br/>
<a id="pl.5.27"></a><var>5.27</var>    Subd. 29. <b>Transferee.</b> "Transferee" means a person to which all or part of a <br/>
<a id="pl.5.28"></a><var>5.28</var>transferable interest has been transferred, whether or not the transferor is a member.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.5.29"></a><var>5.29</var>    Sec. 3. <b>[322C.0103] KNOWLEDGE; NOTICE.</b><br/>
<a id="pl.5.30"></a><var>5.30</var>    Subdivision 1. <b>Knowledge of facts.</b> A person knows a fact when the person:<br/>
<a id="pl.5.31"></a><var>5.31</var>(1) has actual knowledge of it; or<br/>
<a id="pl.5.32"></a><var>5.32</var>(2) is deemed to know it under subdivision 4, clause (1), or law other than this chapter.<br/>
<a id="pl.5.33"></a><var>5.33</var>    Subd. 2. <b>Notice of facts.</b> A person has notice of a fact when the person:<br/>
<a id="pl.5.34"></a><var>5.34</var>(1) has reason to know the fact from all of the facts known to the person at the <br/>
<a id="pl.5.35"></a><var>5.35</var>time in question; or<br/>
<a id="pl.6.1"></a><var>6.1</var>(2) is deemed to have notice of the fact under subdivision 4, clause (2).<br/>
<a id="pl.6.2"></a><var>6.2</var>    Subd. 3. <b>Notification of facts.</b> A person notifies another of a fact by taking steps <br/>
<a id="pl.6.3"></a><var>6.3</var>reasonably required to inform the other person in ordinary course, whether or not the <br/>
<a id="pl.6.4"></a><var>6.4</var>other person knows the fact.<br/>
<a id="pl.6.5"></a><var>6.5</var>    Subd. 4. <b>Constructive notice.</b> A person that is not a member is deemed:<br/>
<a id="pl.6.6"></a><var>6.6</var>(1) to know of a limitation on authority to transfer real property as provided in <br/>
<a id="pl.6.7"></a><var>6.7</var>section 322C.0302, subdivision 7; and<br/>
<a id="pl.6.8"></a><var>6.8</var>(2) to have notice of a limited liability company's:<br/>
<a id="pl.6.9"></a><var>6.9</var>(i) dissolution, 90 days after a statement of dissolution under section 322C.0702, <br/>
<a id="pl.6.10"></a><var>6.10</var>subdivision 2, clause (2)(i), becomes effective;<br/>
<a id="pl.6.11"></a><var>6.11</var>(ii) termination, 90 days after a statement of termination under section 322C.0702, <br/>
<a id="pl.6.12"></a><var>6.12</var>subdivision 2, clause (2)(vi), becomes effective; and<br/>
<a id="pl.6.13"></a><var>6.13</var>(iii) merger, conversion, or domestication, 90 days after articles of merger, <br/>
<a id="pl.6.14"></a><var>6.14</var>conversion, or domestication under sections 322C.1001 to 322C.1015 become effective.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.6.15"></a><var>6.15</var>    Sec. 4. <b>[322C.0104] NATURE, PURPOSE, AND DURATION OF LIMITED </b><br/>
<a id="pl.6.16"></a><var>6.16</var><b>LIABILITY COMPANY.</b><br/>
<a id="pl.6.17"></a><var>6.17</var>    Subdivision 1. <b>Separate entity.</b> A limited liability company is an entity distinct <br/>
<a id="pl.6.18"></a><var>6.18</var>from its members.<br/>
<a id="pl.6.19"></a><var>6.19</var>    Subd. 2. <b>Permitted purposes.</b> Except for a nonprofit limited liability company <br/>
<a id="pl.6.20"></a><var>6.20</var>subject to section 322C.1101, which must comply with that section, a limited liability <br/>
<a id="pl.6.21"></a><var>6.21</var>company may have any lawful purpose.<br/>
<a id="pl.6.22"></a><var>6.22</var>    Subd. 3. <b>Duration.</b> A limited liability company has perpetual duration.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.6.23"></a><var>6.23</var>    Sec. 5. <b>[322C.0105] POWERS.</b><br/>
<a id="pl.6.24"></a><var>6.24</var>    Subdivision 1. <b>Powers generally.</b> Except as provided in subdivision 2, a limited <br/>
<a id="pl.6.25"></a><var>6.25</var>liability company has the capacity to sue and be sued in its own name and the power to do <br/>
<a id="pl.6.26"></a><var>6.26</var>all things necessary or convenient to carry on its activities.<br/>
<a id="pl.6.27"></a><var>6.27</var>    Subd. 2. <b>Shelf LLC.</b> Until a limited liability company has or has had at least one <br/>
<a id="pl.6.28"></a><var>6.28</var>member, the company lacks the capacity to do any act or carry on any activity except:<br/>
<a id="pl.6.29"></a><var>6.29</var>(1) delivering to the secretary of state for filing a statement of change under section <br/>
<a id="pl.6.30"></a><var>6.30</var>322C.0114, an amendment to the certificate under section 322C.0202, a statement of <br/>
<a id="pl.6.31"></a><var>6.31</var>correction under section 322C.0206, an annual report under section 322C.0208, and a <br/>
<a id="pl.6.32"></a><var>6.32</var>statement of termination under section 322C.0702;<br/>
<a id="pl.6.33"></a><var>6.33</var>(2) admitting a member under section 322C.0401; and<br/>
<a id="pl.6.34"></a><var>6.34</var>(3) dissolving under section 322C.0701.<br/>
<a id="pl.7.1"></a><var>7.1</var>    Subd. 3. <b>Ratification.</b> A limited liability company that has or has had at least one <br/>
<a id="pl.7.2"></a><var>7.2</var>member may ratify an act or activity that occurred when the company lacked capacity <br/>
<a id="pl.7.3"></a><var>7.3</var>under subdivision 2.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.7.4"></a><var>7.4</var>    Sec. 6. <b>[322C.0106] GOVERNING LAW.</b><br/>
<a id="pl.7.5"></a><var>7.5</var>The law of this state governs:<br/>
<a id="pl.7.6"></a><var>7.6</var>(1) the internal affairs of a limited liability company; and<br/>
<a id="pl.7.7"></a><var>7.7</var>(2) the liability of a member as member, a manager as manager, and a governor as <br/>
<a id="pl.7.8"></a><var>7.8</var>governor, for the debts, obligations, or other liabilities of a limited liability company.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.7.9"></a><var>7.9</var>    Sec. 7. <b>[322C.0107] SUPPLEMENTAL PRINCIPLES OF LAW.</b><br/>
<a id="pl.7.10"></a><var>7.10</var>Unless displaced by particular provisions of this chapter, the principles of law and <br/>
<a id="pl.7.11"></a><var>7.11</var>equity supplement this chapter.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.7.12"></a><var>7.12</var>    Sec. 8. <b>[322C.0108] LIMITED LIABILITY COMPANY NAME.</b><br/>
<a id="pl.7.13"></a><var>7.13</var>    Subdivision 1. <b>Requirements and prohibitions.</b> The limited liability company <br/>
<a id="pl.7.14"></a><var>7.14</var>name must:<br/>
<a id="pl.7.15"></a><var>7.15</var>(1) be in the English language or in any other language expressed in English letters <br/>
<a id="pl.7.16"></a><var>7.16</var>or characters;<br/>
<a id="pl.7.17"></a><var>7.17</var>(2) contain the words "limited liability company," or must contain the abbreviation <br/>
<a id="pl.7.18"></a><var>7.18</var>"LLC" or, in the case of a limited liability company that is a professional firm subject to <br/>
<a id="pl.7.19"></a><var>7.19</var>chapter 319B, must meet the requirements of section 319B.05 applicable to a limited <br/>
<a id="pl.7.20"></a><var>7.20</var>liability company;<br/>
<a id="pl.7.21"></a><var>7.21</var>(3) not contain the word "corporation" or "incorporated" and must not contain the <br/>
<a id="pl.7.22"></a><var>7.22</var>abbreviation of either or both of these words;<br/>
<a id="pl.7.23"></a><var>7.23</var>(4) not contain a word or phrase that indicates or implies that it is organized for a <br/>
<a id="pl.7.24"></a><var>7.24</var>purpose other than a permitted purpose; and<br/>
<a id="pl.7.25"></a><var>7.25</var>(5) be distinguishable upon the records in the Office of the Secretary of State <br/>
<a id="pl.7.26"></a><var>7.26</var>from the name of each domestic limited liability company, limited liability partnership, <br/>
<a id="pl.7.27"></a><var>7.27</var>corporation, and limited partnership, whether profit or nonprofit, and each foreign limited <br/>
<a id="pl.7.28"></a><var>7.28</var>liability company, limited liability partnership, corporation, and limited partnership on <br/>
<a id="pl.7.29"></a><var>7.29</var>file, authorized or registered to do business in this state at the time of filing, whether profit <br/>
<a id="pl.7.30"></a><var>7.30</var>or nonprofit, and each name the right to which is, at the time of organization, reserved as <br/>
<a id="pl.7.31"></a><var>7.31</var>provided for in sections 5.35, 302A.117, 317A.117, 321.0109, 322B.125, 322C.0109, or <br/>
<a id="pl.7.32"></a><var>7.32</var>333.001 to 333.54, unless there is filed with the articles of organization one of the following:<br/>
<a id="pl.8.1"></a><var>8.1</var>(i) the written consent of the domestic limited liability company, limited liability <br/>
<a id="pl.8.2"></a><var>8.2</var>partnership, corporation, or limited partnership or the foreign limited liability company, <br/>
<a id="pl.8.3"></a><var>8.3</var>limited liability partnership, corporation, or limited partnership authorized or registered to <br/>
<a id="pl.8.4"></a><var>8.4</var>do business in this state or the holder of a reserved name or a name filed by or registered <br/>
<a id="pl.8.5"></a><var>8.5</var>with the secretary of state under sections 333.001 to 333.54 having a name that is not <br/>
<a id="pl.8.6"></a><var>8.6</var>distinguishable;<br/>
<a id="pl.8.7"></a><var>8.7</var>(ii) a certified copy of a final decree of a court in this state establishing the prior right <br/>
<a id="pl.8.8"></a><var>8.8</var>of the applicant to the use of the name in this state; or<br/>
<a id="pl.8.9"></a><var>8.9</var>(iii) the applicant's affidavit that the domestic or foreign limited liability company, <br/>
<a id="pl.8.10"></a><var>8.10</var>domestic or foreign corporation, or domestic or foreign limited partnership with the <br/>
<a id="pl.8.11"></a><var>8.11</var>name that is not distinguishable has been organized, incorporated, or on file in this <br/>
<a id="pl.8.12"></a><var>8.12</var>state for at least three years prior to the affidavit, if it is a domestic limited liability <br/>
<a id="pl.8.13"></a><var>8.13</var>company, corporation, or limited partnership, or has been authorized or registered to <br/>
<a id="pl.8.14"></a><var>8.14</var>do business in this state for at least three years prior to the affidavit, if it is a foreign <br/>
<a id="pl.8.15"></a><var>8.15</var>limited liability company, corporation, or limited partnership, or that the holder of a name <br/>
<a id="pl.8.16"></a><var>8.16</var>filed or registered with the secretary of state under sections 333.001 to 333.54 filed <br/>
<a id="pl.8.17"></a><var>8.17</var>or registered that name at least three years prior to the affidavit, that the domestic or <br/>
<a id="pl.8.18"></a><var>8.18</var>foreign limited liability company, domestic or foreign corporation, or domestic or foreign <br/>
<a id="pl.8.19"></a><var>8.19</var>limited partnership or holder has not during the three-year period before the affidavit filed <br/>
<a id="pl.8.20"></a><var>8.20</var>any document with the secretary of state; that the applicant has mailed written notice <br/>
<a id="pl.8.21"></a><var>8.21</var>to the domestic or foreign limited liability company, domestic or foreign corporation, <br/>
<a id="pl.8.22"></a><var>8.22</var>or domestic or foreign limited partnership or the holder of a name filed or registered <br/>
<a id="pl.8.23"></a><var>8.23</var>with the secretary of state under sections 333.001 to 333.54 by certified mail, return <br/>
<a id="pl.8.24"></a><var>8.24</var>receipt requested, properly addressed to the registered office of the domestic or foreign <br/>
<a id="pl.8.25"></a><var>8.25</var>limited liability company or domestic or foreign corporation or in care of the agent of the <br/>
<a id="pl.8.26"></a><var>8.26</var>domestic or foreign limited partnership, or the address of the holder of a name filed or <br/>
<a id="pl.8.27"></a><var>8.27</var>registered with the secretary of state under sections 333.001 to 333.54, shown in the <br/>
<a id="pl.8.28"></a><var>8.28</var>records of the secretary of state, stating that the applicant intends to use a name that is <br/>
<a id="pl.8.29"></a><var>8.29</var>not distinguishable and the notice has been returned to the applicant as undeliverable to <br/>
<a id="pl.8.30"></a><var>8.30</var>the addressee of the domestic or foreign limited liability company, domestic or foreign <br/>
<a id="pl.8.31"></a><var>8.31</var>corporation, or domestic or foreign limited partnership or holder of a name filed or <br/>
<a id="pl.8.32"></a><var>8.32</var>registered with the secretary of state under sections 333.001 to 333.54; that the applicant, <br/>
<a id="pl.8.33"></a><var>8.33</var>after diligent inquiry, has been unable to find any telephone listing for the domestic or <br/>
<a id="pl.8.34"></a><var>8.34</var>foreign limited liability company, domestic or foreign corporation, or domestic or foreign <br/>
<a id="pl.8.35"></a><var>8.35</var>limited partnership with the name that is not distinguishable in the county in which is <br/>
<a id="pl.8.36"></a><var>8.36</var>located the registered office of the domestic or foreign limited liability company, domestic <br/>
<a id="pl.9.1"></a><var>9.1</var>or foreign corporation, or domestic or foreign limited partnership shown in the records of <br/>
<a id="pl.9.2"></a><var>9.2</var>the secretary of state or has been unable to find any telephone listing for the holder of a <br/>
<a id="pl.9.3"></a><var>9.3</var>name filed or registered with the secretary of state under sections 333.001 to 333.54 <br/>
<a id="pl.9.4"></a><var>9.4</var>in the county in which is located the address of the holder shown in the records of the <br/>
<a id="pl.9.5"></a><var>9.5</var>secretary of state; and that the applicant has no knowledge that the domestic or foreign <br/>
<a id="pl.9.6"></a><var>9.6</var>limited liability company, domestic or foreign corporation, or domestic or foreign limited <br/>
<a id="pl.9.7"></a><var>9.7</var>partnership or holder of a name filed or registered with the secretary of state under sections <br/>
<a id="pl.9.8"></a><var>9.8</var>333.001 to 333.54 is currently engaged in business in this state.<br/>
<a id="pl.9.9"></a><var>9.9</var>    Subd. 2. <b>Determination.</b> The secretary of state shall determine whether a name is <br/>
<a id="pl.9.10"></a><var>9.10</var>"distinguishable" from another name for purposes of this section and section 322C.0109.<br/>
<a id="pl.9.11"></a><var>9.11</var>    Subd. 3. <b>Other laws affecting use of names.</b> This section and section 322C.0109 <br/>
<a id="pl.9.12"></a><var>9.12</var>do not abrogate or limit the law of unfair competition or unfair practices, or sections <br/>
<a id="pl.9.13"></a><var>9.13</var>333.001 to 333.54, or the laws of the United States with respect to the right to acquire <br/>
<a id="pl.9.14"></a><var>9.14</var>and protect copyrights, trade names, trademarks, service names, service marks, or any <br/>
<a id="pl.9.15"></a><var>9.15</var>other rights to the exclusive use of names or symbols, or derogate the common law or <br/>
<a id="pl.9.16"></a><var>9.16</var>the principles of equity.<br/>
<a id="pl.9.17"></a><var>9.17</var>    Subd. 4. <b>Use of name by surviving or successor organization.</b> A limited <br/>
<a id="pl.9.18"></a><var>9.18</var>liability company that is the surviving organization in a merger with one or more other <br/>
<a id="pl.9.19"></a><var>9.19</var>organizations, or that is the continuation of an organization following a conversion, or that <br/>
<a id="pl.9.20"></a><var>9.20</var>is organized by the reorganization of one or more organizations, or that acquires by sale, <br/>
<a id="pl.9.21"></a><var>9.21</var>lease, or other disposition to or exchange with an organization all or substantially all of the <br/>
<a id="pl.9.22"></a><var>9.22</var>assets of another organization, including its name, may have the same name as that used in <br/>
<a id="pl.9.23"></a><var>9.23</var>this state by any of the other organizations, if the other organization whose name is sought to <br/>
<a id="pl.9.24"></a><var>9.24</var>be used was organized under the laws of, or is authorized to transact business in, this state.<br/>
<a id="pl.9.25"></a><var>9.25</var>    Subd. 5. <b>Injunction.</b> The use of a name by a limited liability company in violation <br/>
<a id="pl.9.26"></a><var>9.26</var>of this section does not affect or vitiate its limited liability company existence, but a court <br/>
<a id="pl.9.27"></a><var>9.27</var>in this state may, upon application of the state or of a person interested or affected, enjoin <br/>
<a id="pl.9.28"></a><var>9.28</var>the limited liability company from doing business under a name assumed in violation of <br/>
<a id="pl.9.29"></a><var>9.29</var>this section, although its articles of organization may have been filed with the secretary of <br/>
<a id="pl.9.30"></a><var>9.30</var>state and articles of organization issued.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.9.31"></a><var>9.31</var>    Sec. 9. <b>[322C.0109] RESERVED NAME.</b><br/>
<a id="pl.9.32"></a><var>9.32</var>    Subdivision 1. <b>Procedure.</b> A person may reserve the exclusive use of the name of <br/>
<a id="pl.9.33"></a><var>9.33</var>a limited liability company, including an alternate name for a foreign limited liability <br/>
<a id="pl.9.34"></a><var>9.34</var>company, by filing an application with the secretary of state. The application must state <br/>
<a id="pl.9.35"></a><var>9.35</var>the name and address of the applicant and the name proposed to be reserved. If the <br/>
<a id="pl.10.1"></a><var>10.1</var>secretary of state finds that the name applied for is available, it must be reserved for the <br/>
<a id="pl.10.2"></a><var>10.2</var>applicant's exclusive use for a one-year period.<br/>
<a id="pl.10.3"></a><var>10.3</var>    Subd. 2. <b>Transfer.</b> The owner of a name reserved for a limited liability company <br/>
<a id="pl.10.4"></a><var>10.4</var>may transfer the reservation to another person by filing with the secretary of state for filing <br/>
<a id="pl.10.5"></a><var>10.5</var>a signed notice of the transfer which states the name and address of the transferee.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.10.6"></a><var>10.6</var>    Sec. 10. <b>[322C.0110] OPERATING AGREEMENT; SCOPE, FUNCTION, AND </b><br/>
<a id="pl.10.7"></a><var>10.7</var><b>LIMITATIONS.</b><br/>
<a id="pl.10.8"></a><var>10.8</var>    Subdivision 1. <b>Operating agreement.</b> Except as otherwise provided in subdivisions <br/>
<a id="pl.10.9"></a><var>10.9</var>2 and 3, the operating agreement governs:<br/>
<a id="pl.10.10"></a><var>10.10</var>(1) relations among the members as members and between the members and the <br/>
<a id="pl.10.11"></a><var>10.11</var>limited liability company;<br/>
<a id="pl.10.12"></a><var>10.12</var>(2) the rights and duties under this chapter of a person in the capacity of manager or <br/>
<a id="pl.10.13"></a><var>10.13</var>governor;<br/>
<a id="pl.10.14"></a><var>10.14</var>(3) the activities of the company and the conduct of those activities; and<br/>
<a id="pl.10.15"></a><var>10.15</var>(4) the means and conditions for amending the operating agreement.<br/>
<a id="pl.10.16"></a><var>10.16</var>    Subd. 2. <b>Default rules supplementing operating agreement.</b> To the extent the <br/>
<a id="pl.10.17"></a><var>10.17</var>operating agreement does not otherwise provide for a matter described in subdivision 1, <br/>
<a id="pl.10.18"></a><var>10.18</var>this chapter governs the matter.<br/>
<a id="pl.10.19"></a><var>10.19</var>    Subd. 3. <b>Restrictions.</b> An operating agreement may not:<br/>
<a id="pl.10.20"></a><var>10.20</var>(1) vary a limited liability company's capacity under section 322C.0105 to sue and <br/>
<a id="pl.10.21"></a><var>10.21</var>be sued in its own name;<br/>
<a id="pl.10.22"></a><var>10.22</var>(2) vary the law applicable under section 322C.0106;<br/>
<a id="pl.10.23"></a><var>10.23</var>(3) vary the power of the court under section 322C.0204;<br/>
<a id="pl.10.24"></a><var>10.24</var>(4) subject to subdivisions 4 to 7, eliminate the duty of loyalty, the duty of care, or <br/>
<a id="pl.10.25"></a><var>10.25</var>any other fiduciary duty;<br/>
<a id="pl.10.26"></a><var>10.26</var>(5) subject to subdivisions 4 to 7, eliminate the contractual obligation of good faith <br/>
<a id="pl.10.27"></a><var>10.27</var>and fair dealing under section 322C.0409, subdivision 4;<br/>
<a id="pl.10.28"></a><var>10.28</var>(6) unreasonably restrict the duties and rights stated in section 322C.0410;<br/>
<a id="pl.10.29"></a><var>10.29</var>(7) vary the power of a court to decree dissolution in the circumstances specified <br/>
<a id="pl.10.30"></a><var>10.30</var>in section 322C.0701, subdivision 1, clauses (4) and (5);<br/>
<a id="pl.10.31"></a><var>10.31</var>(8) vary the requirement to wind up a limited liability company's business as <br/>
<a id="pl.10.32"></a><var>10.32</var>specified in section 322C.0702, subdivisions 1 and 2, clause (1);<br/>
<a id="pl.10.33"></a><var>10.33</var>(9) unreasonably restrict the right of a member to maintain an action under sections <br/>
<a id="pl.10.34"></a><var>10.34</var>322C.0901 to 322C.0906;<br/>
<a id="pl.11.1"></a><var>11.1</var>(10) restrict the right to approve a merger, conversion, or domestication under <br/>
<a id="pl.11.2"></a><var>11.2</var>section 322C.1015 to a member that will have personal liability with respect to a surviving, <br/>
<a id="pl.11.3"></a><var>11.3</var>converted, or domesticated organization; or<br/>
<a id="pl.11.4"></a><var>11.4</var>(11) except as otherwise provided in section 322C.0112, subdivision 2, restrict the <br/>
<a id="pl.11.5"></a><var>11.5</var>rights under this chapter of a person other than a member, manager, or governor.<br/>
<a id="pl.11.6"></a><var>11.6</var>    Subd. 4. <b>Provisions particularly but not exclusively authorized.</b> If not manifestly <br/>
<a id="pl.11.7"></a><var>11.7</var>unreasonable, and without limiting the terms that may be included in an operating <br/>
<a id="pl.11.8"></a><var>11.8</var>agreement, the operating agreement may:<br/>
<a id="pl.11.9"></a><var>11.9</var>(1) restrict or eliminate the duty:<br/>
<a id="pl.11.10"></a><var>11.10</var>(i) as required in section 322C.0409, subdivisions 2, clause (1), and 7, to account to <br/>
<a id="pl.11.11"></a><var>11.11</var>the limited liability company and to hold as trustee for it any property, profit, or benefit <br/>
<a id="pl.11.12"></a><var>11.12</var>derived by the member in the conduct or winding up of the company's business, from a <br/>
<a id="pl.11.13"></a><var>11.13</var>use by the member of the company's property, or from the appropriation of a limited <br/>
<a id="pl.11.14"></a><var>11.14</var>liability company opportunity;<br/>
<a id="pl.11.15"></a><var>11.15</var>(ii) as required in section 322C.0409, subdivisions 2, clause (2), and 7, to refrain <br/>
<a id="pl.11.16"></a><var>11.16</var>from dealing with the company in the conduct or winding up of the company's business as <br/>
<a id="pl.11.17"></a><var>11.17</var>or on behalf of a party having an interest adverse to the company; and<br/>
<a id="pl.11.18"></a><var>11.18</var>(iii) as required by section 322C.0409, subdivisions 2, clause (3), and 7, to refrain <br/>
<a id="pl.11.19"></a><var>11.19</var>from competing with the company in the conduct of the company's business before the <br/>
<a id="pl.11.20"></a><var>11.20</var>dissolution of the company;<br/>
<a id="pl.11.21"></a><var>11.21</var>(2) identify specific types or categories of activities that do not violate the duty <br/>
<a id="pl.11.22"></a><var>11.22</var>of loyalty;<br/>
<a id="pl.11.23"></a><var>11.23</var>(3) alter the duty of care, except to authorize intentional misconduct or knowing <br/>
<a id="pl.11.24"></a><var>11.24</var>violation of law;<br/>
<a id="pl.11.25"></a><var>11.25</var>(4) alter any other fiduciary duty, including eliminating particular aspects of that <br/>
<a id="pl.11.26"></a><var>11.26</var>duty; and<br/>
<a id="pl.11.27"></a><var>11.27</var>(5) prescribe the standards by which to measure the performance of the contractual <br/>
<a id="pl.11.28"></a><var>11.28</var>obligation of good faith and fair dealing under section 322C.0409, subdivision 4.<br/>
<a id="pl.11.29"></a><var>11.29</var>    Subd. 5. <b>Duty of loyalty, authorization and ratification of otherwise violative </b><br/>
<a id="pl.11.30"></a><var>11.30</var><b>conduct.</b> The operating agreement may specify the method by which a specific act or <br/>
<a id="pl.11.31"></a><var>11.31</var>transaction that would otherwise violate the duty of loyalty may be authorized or ratified by <br/>
<a id="pl.11.32"></a><var>11.32</var>one or more disinterested and independent persons after full disclosure of all material facts.<br/>
<a id="pl.11.33"></a><var>11.33</var>    Subd. 6. <b>Eliminating fiduciary duty when responsibility eliminated.</b> To the extent <br/>
<a id="pl.11.34"></a><var>11.34</var>the operating agreement of a member-managed limited liability company expressly relieves <br/>
<a id="pl.11.35"></a><var>11.35</var>a member of a responsibility that the member would otherwise have under this chapter and <br/>
<a id="pl.11.36"></a><var>11.36</var>imposes the responsibility on one or more other members, the operating agreement may, <br/>
<a id="pl.12.1"></a><var>12.1</var>to the benefit of the member that the operating agreement relieves of the responsibility, <br/>
<a id="pl.12.2"></a><var>12.2</var>also eliminate or limit any fiduciary duty that would have pertained to the responsibility.<br/>
<a id="pl.12.3"></a><var>12.3</var>    Subd. 7. <b>Indemnification and exculpation.</b> The operating agreement may alter or <br/>
<a id="pl.12.4"></a><var>12.4</var>eliminate the indemnification for a member, manager, or governor provided by section <br/>
<a id="pl.12.5"></a><var>12.5</var>322C.0408, subdivision 1, and may eliminate or limit a member's, manager's, or governor's <br/>
<a id="pl.12.6"></a><var>12.6</var>liability to the limited liability company and members for money damages, except for:<br/>
<a id="pl.12.7"></a><var>12.7</var>(1) breach of the duty of loyalty;<br/>
<a id="pl.12.8"></a><var>12.8</var>(2) a financial benefit received by the member or manager to which the member or <br/>
<a id="pl.12.9"></a><var>12.9</var>manager is not entitled;<br/>
<a id="pl.12.10"></a><var>12.10</var>(3) a breach of a duty under section 322C.0406;<br/>
<a id="pl.12.11"></a><var>12.11</var>(4) intentional infliction of harm on the company or a member; or<br/>
<a id="pl.12.12"></a><var>12.12</var>(5) an intentional violation of criminal law.<br/>
<a id="pl.12.13"></a><var>12.13</var>    Subd. 8. <b>Determining whether term is manifestly unreasonable.</b> The court shall <br/>
<a id="pl.12.14"></a><var>12.14</var>decide any claim under subdivision 4 that a term of an operating agreement is manifestly <br/>
<a id="pl.12.15"></a><var>12.15</var>unreasonable. The court:<br/>
<a id="pl.12.16"></a><var>12.16</var>(1) shall make its determination as of the time the challenged term became part of <br/>
<a id="pl.12.17"></a><var>12.17</var>the operating agreement and by considering only circumstances existing at that time; and<br/>
<a id="pl.12.18"></a><var>12.18</var>(2) may invalidate the term only if, in light of the purposes and activities of the <br/>
<a id="pl.12.19"></a><var>12.19</var>limited liability company, it is readily apparent that:<br/>
<a id="pl.12.20"></a><var>12.20</var>(i) the objective of the term is unreasonable; or<br/>
<a id="pl.12.21"></a><var>12.21</var>(ii) the term is an unreasonable means to achieve the provision's objective.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.12.22"></a><var>12.22</var>    Sec. 11. <b>[322C.0111] OPERATING AGREEMENT; EFFECT ON LIMITED </b><br/>
<a id="pl.12.23"></a><var>12.23</var><b>LIABILITY COMPANY AND PERSONS BECOMING MEMBERS; </b><br/>
<a id="pl.12.24"></a><var>12.24</var><b>PREFORMATION AGREEMENT.</b><br/>
<a id="pl.12.25"></a><var>12.25</var>    Subdivision 1. <b>Company's assent not required.</b> A limited liability company is <br/>
<a id="pl.12.26"></a><var>12.26</var>bound by and may enforce the operating agreement, whether or not the company has itself <br/>
<a id="pl.12.27"></a><var>12.27</var>manifested assent to the operating agreement.<br/>
<a id="pl.12.28"></a><var>12.28</var>    Subd. 2. <b>Deemed assent by all members.</b> A person that becomes a member of a <br/>
<a id="pl.12.29"></a><var>12.29</var>limited liability company is deemed to assent to the operating agreement.<br/>
<a id="pl.12.30"></a><var>12.30</var>    Subd. 3. <b>Preformation agreement.</b> Two or more persons intending to become the <br/>
<a id="pl.12.31"></a><var>12.31</var>initial members of a limited liability company may make an agreement providing that <br/>
<a id="pl.12.32"></a><var>12.32</var>upon the formation of the company the agreement will become the operating agreement. <br/>
<a id="pl.12.33"></a><var>12.33</var>One person intending to become the initial member of a limited liability company may <br/>
<a id="pl.12.34"></a><var>12.34</var>assent to terms providing that upon the formation of the company the terms will become <br/>
<a id="pl.12.35"></a><var>12.35</var>the operating agreement.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.13.1"></a><var>13.1</var>    Sec. 12. <b>[322C.0112] OPERATING AGREEMENT; EFFECT ON THIRD </b><br/>
<a id="pl.13.2"></a><var>13.2</var><b>PARTIES AND RELATIONSHIP TO RECORDS EFFECTIVE ON BEHALF OF </b><br/>
<a id="pl.13.3"></a><var>13.3</var><b>LIMITED LIABILITY COMPANY.</b><br/>
<a id="pl.13.4"></a><var>13.4</var>    Subdivision 1. <b>Approval of third party.</b> An operating agreement may specify <br/>
<a id="pl.13.5"></a><var>13.5</var>that its amendment requires the approval of a person that is not a party to the operating <br/>
<a id="pl.13.6"></a><var>13.6</var>agreement or the satisfaction of a condition. An amendment is ineffective if its adoption <br/>
<a id="pl.13.7"></a><var>13.7</var>does not include the required approval or satisfy the specified condition.<br/>
<a id="pl.13.8"></a><var>13.8</var>    Subd. 2. <b>Transferees and dissociated members.</b> The obligations of a limited <br/>
<a id="pl.13.9"></a><var>13.9</var>liability company and its members to a person in the person's capacity as a transferee or <br/>
<a id="pl.13.10"></a><var>13.10</var>dissociated member are governed by the operating agreement. Subject only to any court <br/>
<a id="pl.13.11"></a><var>13.11</var>order issued under section 322C.0503, subdivision 2, clause (2), to effectuate a charging <br/>
<a id="pl.13.12"></a><var>13.12</var>order, an amendment to the operating agreement made after a person becomes a transferee <br/>
<a id="pl.13.13"></a><var>13.13</var>or dissociated member is effective with regard to any debt, obligation, or other liability of <br/>
<a id="pl.13.14"></a><var>13.14</var>the limited liability company or its members to the person in the person's capacity as a <br/>
<a id="pl.13.15"></a><var>13.15</var>transferee or dissociated member.<br/>
<a id="pl.13.16"></a><var>13.16</var>    Subd. 3. <b>Ineffective provisions.</b> If a record that has been delivered by a limited <br/>
<a id="pl.13.17"></a><var>13.17</var>liability company to the secretary of state for filing and has become effective under <br/>
<a id="pl.13.18"></a><var>13.18</var>this chapter contains a provision that would be ineffective under section 322C.0110, <br/>
<a id="pl.13.19"></a><var>13.19</var>subdivision 3, if contained in the operating agreement, the provision is likewise ineffective <br/>
<a id="pl.13.20"></a><var>13.20</var>in the record.<br/>
<a id="pl.13.21"></a><var>13.21</var>    Subd. 4. <b>Conflicting provisions.</b> Subject to subdivision 3, if a record that has been <br/>
<a id="pl.13.22"></a><var>13.22</var>delivered by a limited liability company to the secretary of state for filing and has become <br/>
<a id="pl.13.23"></a><var>13.23</var>effective under this chapter conflicts with a provision of the operating agreement:<br/>
<a id="pl.13.24"></a><var>13.24</var>(1) the operating agreement prevails as to members, dissociated members, <br/>
<a id="pl.13.25"></a><var>13.25</var>transferees, managers, and governors; and<br/>
<a id="pl.13.26"></a><var>13.26</var>(2) the record prevails as to other persons to the extent they reasonably rely on <br/>
<a id="pl.13.27"></a><var>13.27</var>the record.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.13.28"></a><var>13.28</var>    Sec. 13. <b>[322C.0113] OFFICE AND AGENT FOR SERVICE OF PROCESS.</b><br/>
<a id="pl.13.29"></a><var>13.29</var>Every limited liability company shall have a registered office and may have a <br/>
<a id="pl.13.30"></a><var>13.30</var>registered agent, in the manner prescribed by section 5.36.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.13.31"></a><var>13.31</var>    Sec. 14. <b>[322C.0114] CHANGE OF REGISTERED OFFICE OR AGENT FOR </b><br/>
<a id="pl.13.32"></a><var>13.32</var><b>SERVICE OF PROCESS.</b><br/>
<a id="pl.14.1"></a><var>14.1</var>Every limited liability company may change its registered office or change its <br/>
<a id="pl.14.2"></a><var>14.2</var>registered agent, and the agent may resign or change its business address or name, in the <br/>
<a id="pl.14.3"></a><var>14.3</var>manner prescribed by section 5.36.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.14.4"></a><var>14.4</var>    Sec. 15. <b>[322C.0115] RESIGNATION OF AGENT FOR SERVICE OF PROCESS.</b><br/>
<a id="pl.14.5"></a><var>14.5</var>Every limited liability company registered agent may resign in the manner <br/>
<a id="pl.14.6"></a><var>14.6</var>prescribed by section 5.36.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.14.7"></a><var>14.7</var>    Sec. 16. <b>[322C.0116] SERVICE OF PROCESS ON LIMITED LIABILITY </b><br/>
<a id="pl.14.8"></a><var>14.8</var><b>COMPANY.</b><br/>
<a id="pl.14.9"></a><var>14.9</var>    Subdivision 1. <b>Agent.</b> An agent for service of process appointed by a limited liability <br/>
<a id="pl.14.10"></a><var>14.10</var>company or foreign limited liability company is an agent of the company for service of <br/>
<a id="pl.14.11"></a><var>14.11</var>any process, notice, or demand required or permitted by law to be served on the company.<br/>
<a id="pl.14.12"></a><var>14.12</var>    Subd. 2. <b>Secretary of state.</b> If a limited liability company or foreign limited <br/>
<a id="pl.14.13"></a><var>14.13</var>liability company does not appoint or maintain an agent for service of process in this <br/>
<a id="pl.14.14"></a><var>14.14</var>state or the agent for service of process cannot with reasonable diligence be found at <br/>
<a id="pl.14.15"></a><var>14.15</var>the agent's street address, the secretary of state is an agent of the company upon whom <br/>
<a id="pl.14.16"></a><var>14.16</var>process, notice, or demand may be served.<br/>
<a id="pl.14.17"></a><var>14.17</var>    Subd. 3. <b>Record of service.</b> A process, notice, or demand required or permitted by <br/>
<a id="pl.14.18"></a><var>14.18</var>law to be served upon a company may be served upon the secretary of state as provided <br/>
<a id="pl.14.19"></a><var>14.19</var>in section 5.25.<br/>
<a id="pl.14.20"></a><var>14.20</var>    Subd. 4. <b>Other law not affected.</b> This section does not affect the right to serve <br/>
<a id="pl.14.21"></a><var>14.21</var>process, notice, or demand in any other manner provided by law.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.14.22"></a><var>14.22</var>    Sec. 17. <b>[322C.0117] LEGAL RECOGNITION OF ELECTRONIC RECORDS </b><br/>
<a id="pl.14.23"></a><var>14.23</var><b>AND SIGNATURES.</b><br/>
<a id="pl.14.24"></a><var>14.24</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the words, terms, and <br/>
<a id="pl.14.25"></a><var>14.25</var>phrases defined in this subdivision have the meanings given them.<br/>
<a id="pl.14.26"></a><var>14.26</var>(b) "Electronic" means relating to technology having electrical, digital, magnetic, <br/>
<a id="pl.14.27"></a><var>14.27</var>wireless, optical, electromagnetic, or similar capabilities.<br/>
<a id="pl.14.28"></a><var>14.28</var>(c) "Electronic record" means a record created, generated, sent, communicated, <br/>
<a id="pl.14.29"></a><var>14.29</var>received, or stored by electronic means.<br/>
<a id="pl.14.30"></a><var>14.30</var>(d) "Electronic signature" means an electronic sound, symbol, or process attached <br/>
<a id="pl.14.31"></a><var>14.31</var>to or logically associated with a record and executed or adopted by a person with the <br/>
<a id="pl.14.32"></a><var>14.32</var>intent to sign the record.<br/>
<a id="pl.14.33"></a><var>14.33</var>    Subd. 2. <b>Electronic records and signatures.</b> For purposes of this chapter:<br/>
<a id="pl.15.1"></a><var>15.1</var>(1) a record or signature may not be denied legal effect or enforceability solely <br/>
<a id="pl.15.2"></a><var>15.2</var>because it is in electronic form;<br/>
<a id="pl.15.3"></a><var>15.3</var>(2) a contract may not be denied legal effect or enforceability solely because an <br/>
<a id="pl.15.4"></a><var>15.4</var>electronic record was used in its formation;<br/>
<a id="pl.15.5"></a><var>15.5</var>(3) if a provision requires a record to be in writing, an electronic record satisfies <br/>
<a id="pl.15.6"></a><var>15.6</var>the requirement; and<br/>
<a id="pl.15.7"></a><var>15.7</var>(4) if a provision requires a signature, an electronic signature satisfies the requirement.<br/>

<a id="bill.1.18.0"></a><a id="pl.15.9"></a><var>15.9</var>    Sec. 18. <b>[322C.0201] FORMATION OF LIMITED LIABILITY COMPANY; </b><br/>
<a id="pl.15.10"></a><var>15.10</var><b>ARTICLES OF ORGANIZATION.</b><br/>
<a id="pl.15.11"></a><var>15.11</var>    Subdivision 1. <b>Organizers.</b> One or more persons may act as organizers to form <br/>
<a id="pl.15.12"></a><var>15.12</var>a limited liability company by signing and filing with the secretary of state articles of <br/>
<a id="pl.15.13"></a><var>15.13</var>organization.<br/>
<a id="pl.15.14"></a><var>15.14</var>    Subd. 2. <b>Required contents of articles of organization.</b> Articles of organization <br/>
<a id="pl.15.15"></a><var>15.15</var>must state:<br/>
<a id="pl.15.16"></a><var>15.16</var>(1) the name of the limited liability company, which must comply with section <br/>
<a id="pl.15.17"></a><var>15.17</var>322C.0108; <br/>
<a id="pl.15.18"></a><var>15.18</var>(2) the street address of the initial registered office and the name of the initial agent <br/>
<a id="pl.15.19"></a><var>15.19</var>for service of process of the company at the registered office; and<br/>
<a id="pl.15.20"></a><var>15.20</var>(3) the name and street address of each organizer.<br/>
<a id="pl.15.21"></a><var>15.21</var>    Subd. 3. <b>Optional contents of articles of organization.</b> Subject to section <br/>
<a id="pl.15.22"></a><var>15.22</var>322C.0112, subdivision 3, articles of organization may also contain statements as to <br/>
<a id="pl.15.23"></a><var>15.23</var>matters other than those required by subdivision 2. However, a statement in articles of <br/>
<a id="pl.15.24"></a><var>15.24</var>organization is not effective as a statement of authority.<br/>
<a id="pl.15.25"></a><var>15.25</var>    Subd. 4. <b>Formation.</b> (a) A limited liability company is formed when articles of <br/>
<a id="pl.15.26"></a><var>15.26</var>organization have been filed with the secretary of state.<br/>
<a id="pl.15.27"></a><var>15.27</var>(b) Except in a proceeding by this state to dissolve a limited liability company, the <br/>
<a id="pl.15.28"></a><var>15.28</var>filing of the articles of organization by the secretary of state is conclusive proof that the <br/>
<a id="pl.15.29"></a><var>15.29</var>organizer satisfied all conditions to the formation of a limited liability company.<br/>
<a id="pl.15.30"></a><var>15.30</var>(c) The formation of a limited liability company does not by itself cause any person <br/>
<a id="pl.15.31"></a><var>15.31</var>to become a member. However, this chapter does not preclude an agreement, made before <br/>
<a id="pl.15.32"></a><var>15.32</var>or after formation of a limited liability company, which provides that one or more persons <br/>
<a id="pl.15.33"></a><var>15.33</var>will become members, or acknowledging that one or more persons became members, <br/>
<a id="pl.15.34"></a><var>15.34</var>upon or otherwise in connection with the formation of the limited liability company. <br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.16.1"></a><var>16.1</var>    Sec. 19. <b>[322C.0202] AMENDMENT OR RESTATEMENT OF ARTICLES OF </b><br/>
<a id="pl.16.2"></a><var>16.2</var><b>ORGANIZATION.</b><br/>
<a id="pl.16.3"></a><var>16.3</var>    Subdivision 1. <b>Timing of amendment.</b> Articles of organization may be amended or <br/>
<a id="pl.16.4"></a><var>16.4</var>restated at any time.<br/>
<a id="pl.16.5"></a><var>16.5</var>    Subd. 2. <b>Amendment procedure.</b> To amend its articles of organization, a limited <br/>
<a id="pl.16.6"></a><var>16.6</var>liability company must file with the secretary of state an amendment stating:<br/>
<a id="pl.16.7"></a><var>16.7</var>(1) the name of the company;<br/>
<a id="pl.16.8"></a><var>16.8</var>(2) the changes the amendment makes to the articles of organization as most recently <br/>
<a id="pl.16.9"></a><var>16.9</var>amended or restated; and<br/>
<a id="pl.16.10"></a><var>16.10</var>(3) a statement that the amendment was adopted pursuant to this chapter.<br/>
<a id="pl.16.11"></a><var>16.11</var>    Subd. 3. <b>Restatement.</b> To restate its articles of organization, a limited liability <br/>
<a id="pl.16.12"></a><var>16.12</var>company must file with the secretary of state a restatement, designated as such in its <br/>
<a id="pl.16.13"></a><var>16.13</var>heading, stating:<br/>
<a id="pl.16.14"></a><var>16.14</var>(1) in the heading or an introductory paragraph, the company's present name; and<br/>
<a id="pl.16.15"></a><var>16.15</var>(2) the changes the restatement makes to the articles of organization as most recently <br/>
<a id="pl.16.16"></a><var>16.16</var>amended or restated.<br/>
<a id="pl.16.17"></a><var>16.17</var>    Subd. 4. <b>Date of effectuation.</b> Subject to sections 322C.0112, subdivision 3, and <br/>
<a id="pl.16.18"></a><var>16.18</var>322C.0205, subdivision 3, an amendment to or restatement of articles of organization is <br/>
<a id="pl.16.19"></a><var>16.19</var>effective when filed with the secretary of state.<br/>
<a id="pl.16.20"></a><var>16.20</var>    Subd. 5. <b>Inaccurate information.</b> If a member of a member-managed limited <br/>
<a id="pl.16.21"></a><var>16.21</var>liability company, a manager of a manager-managed limited liability company, or a <br/>
<a id="pl.16.22"></a><var>16.22</var>governor of a board-managed limited liability company, knows that any information in <br/>
<a id="pl.16.23"></a><var>16.23</var>articles of organization filed with the secretary of state was inaccurate when the articles <br/>
<a id="pl.16.24"></a><var>16.24</var>were filed or has become inaccurate owing to changed circumstances, the member, <br/>
<a id="pl.16.25"></a><var>16.25</var>manager, or governor shall promptly:<br/>
<a id="pl.16.26"></a><var>16.26</var>(1) cause the articles to be amended; or<br/>
<a id="pl.16.27"></a><var>16.27</var>(2) if appropriate, file with the secretary of state a change of registered office under <br/>
<a id="pl.16.28"></a><var>16.28</var>section 322C.0114.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.16.29"></a><var>16.29</var>    Sec. 20. <b>[322C.0203] SIGNING OF RECORDS TO BE FILED WITH </b><br/>
<a id="pl.16.30"></a><var>16.30</var><b>SECRETARY OF STATE.</b><br/>
<a id="pl.16.31"></a><var>16.31</var>    Subdivision 1. <b>Signing requirements.</b> A record filed with the secretary of state <br/>
<a id="pl.16.32"></a><var>16.32</var>pursuant to this chapter must be signed as follows:<br/>
<a id="pl.16.33"></a><var>16.33</var>(1) Except as otherwise provided in clauses (2) through (4), a record signed on behalf <br/>
<a id="pl.16.34"></a><var>16.34</var>of a limited liability company must be signed by a person authorized by the company.<br/>
<a id="pl.17.1"></a><var>17.1</var>(2) A limited liability company's initial articles of organization must be signed by <br/>
<a id="pl.17.2"></a><var>17.2</var>at least one person acting as an organizer.<br/>
<a id="pl.17.3"></a><var>17.3</var>(3) A notice under section 322C.0201, subdivision 5, clause (1), must be signed <br/>
<a id="pl.17.4"></a><var>17.4</var>by an organizer.<br/>
<a id="pl.17.5"></a><var>17.5</var>(4) A record filed on behalf of a dissolved limited liability company that has no <br/>
<a id="pl.17.6"></a><var>17.6</var>members must be signed by the person winding up the company's activities under section <br/>
<a id="pl.17.7"></a><var>17.7</var>322C.0702, subdivision 3, or a person appointed under section 322C.0702, subdivision 4, <br/>
<a id="pl.17.8"></a><var>17.8</var>to wind up those activities.<br/>
<a id="pl.17.9"></a><var>17.9</var>(5) A statement of denial by a person under section 322C.0303 must be signed <br/>
<a id="pl.17.10"></a><var>17.10</var>by that person.<br/>
<a id="pl.17.11"></a><var>17.11</var>(6) Any other record must be signed by the person on whose behalf the record is <br/>
<a id="pl.17.12"></a><var>17.12</var>filed with the secretary of state.<br/>
<a id="pl.17.13"></a><var>17.13</var>    Subd. 2. <b>Signing by agent.</b> Any record filed under this chapter may be signed by an <br/>
<a id="pl.17.14"></a><var>17.14</var>agent pursuant to section 5.15.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.17.15"></a><var>17.15</var>    Sec. 21. <b>[322C.0204] SIGNING AND FILING PURSUANT TO JUDICIAL </b><br/>
<a id="pl.17.16"></a><var>17.16</var><b>ORDER.</b><br/>
<a id="pl.17.17"></a><var>17.17</var>    Subdivision 1. <b>Process.</b> If a person required by this chapter to sign a record or file <br/>
<a id="pl.17.18"></a><var>17.18</var>a record with the secretary of state does not do so, any other person that is aggrieved <br/>
<a id="pl.17.19"></a><var>17.19</var>may petition the appropriate court to order:<br/>
<a id="pl.17.20"></a><var>17.20</var>(1) the person to sign the record;<br/>
<a id="pl.17.21"></a><var>17.21</var>(2) the person to file the record with the secretary of state for filing; or<br/>
<a id="pl.17.22"></a><var>17.22</var>(3) the secretary of state to file the record unsigned.<br/>
<a id="pl.17.23"></a><var>17.23</var>    Subd. 2. <b>Joinder of limited liability company.</b> If a petitioner under subdivision <br/>
<a id="pl.17.24"></a><var>17.24</var>1 is not the limited liability company or foreign limited liability company to which the <br/>
<a id="pl.17.25"></a><var>17.25</var>record pertains, the petitioner shall make the company a party to the action.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.17.26"></a><var>17.26</var>    Sec. 22. <b>[322C.0205] FILING OF RECORDS WITH SECRETARY OF STATE; </b><br/>
<a id="pl.17.27"></a><var>17.27</var><b>EFFECTIVE TIME AND DATE.</b><br/>
<a id="pl.17.28"></a><var>17.28</var>    Subdivision 1. <b>Delivery requirements.</b> A record authorized or required to be filed <br/>
<a id="pl.17.29"></a><var>17.29</var>with the secretary of state under this chapter must be captioned to describe the record's <br/>
<a id="pl.17.30"></a><var>17.30</var>purpose, be in a medium permitted by the secretary of state, and be delivered to the <br/>
<a id="pl.17.31"></a><var>17.31</var>secretary of state. If the filing fees have been paid, unless the secretary of state determines <br/>
<a id="pl.17.32"></a><var>17.32</var>that a record does not comply with the filing requirements of this chapter, the secretary <br/>
<a id="pl.17.33"></a><var>17.33</var>of state shall file the record and:<br/>
<a id="pl.18.1"></a><var>18.1</var>(1) for a statement of denial under section 322C.0303, send an image of the filed <br/>
<a id="pl.18.2"></a><var>18.2</var>statement and a receipt for the fees to the person on whose behalf the statement was <br/>
<a id="pl.18.3"></a><var>18.3</var>delivered for filing and to the limited liability company; and<br/>
<a id="pl.18.4"></a><var>18.4</var>(2) for all other records, send an image of the filed record to the person on whose <br/>
<a id="pl.18.5"></a><var>18.5</var>behalf the record was filed.<br/>
<a id="pl.18.6"></a><var>18.6</var>    Subd. 2. <b>Certified copy to requester.</b> Upon request and payment of the requisite <br/>
<a id="pl.18.7"></a><var>18.7</var>fee, the secretary of state shall send to the requester a certified copy of a requested record.<br/>
<a id="pl.18.8"></a><var>18.8</var>    Subd. 3. <b>Effective date and time.</b> Except as otherwise provided in sections <br/>
<a id="pl.18.9"></a><var>18.9</var>322C.0115, 322C.0201, subdivision 4, paragraph (a), and 322C.0206, a record filed with <br/>
<a id="pl.18.10"></a><var>18.10</var>the secretary of state under this chapter may specify an effective time and a delayed <br/>
<a id="pl.18.11"></a><var>18.11</var>effective date. Subject to sections 322C.0115, 322C.0201, subdivision 4, paragraph (a), <br/>
<a id="pl.18.12"></a><var>18.12</var>and 322C.0206, a record filed with the secretary of state is effective:<br/>
<a id="pl.18.13"></a><var>18.13</var>(1) if the record does not specify either an effective time or a delayed effective date, <br/>
<a id="pl.18.14"></a><var>18.14</var>on the date and at the time the record is filed as evidenced by the secretary of state's <br/>
<a id="pl.18.15"></a><var>18.15</var>endorsement of the date and time on the record;<br/>
<a id="pl.18.16"></a><var>18.16</var>(2) if the record specifies an effective time but not a delayed effective date, on the <br/>
<a id="pl.18.17"></a><var>18.17</var>date the record is filed at the time specified in the record;<br/>
<a id="pl.18.18"></a><var>18.18</var>(3) if the record specifies a delayed effective date but not an effective time, at 11:59 <br/>
<a id="pl.18.19"></a><var>18.19</var>p.m. on the earlier of:<br/>
<a id="pl.18.20"></a><var>18.20</var>(i) the specified date; or<br/>
<a id="pl.18.21"></a><var>18.21</var>(ii) the 90th day after the record is filed; or<br/>
<a id="pl.18.22"></a><var>18.22</var>(4) if the record specifies an effective time and a delayed effective date, at the <br/>
<a id="pl.18.23"></a><var>18.23</var>specified time on the earlier of:<br/>
<a id="pl.18.24"></a><var>18.24</var>(i) the specified date; or<br/>
<a id="pl.18.25"></a><var>18.25</var>(ii) the 90th day after the record is filed.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.18.26"></a><var>18.26</var>    Sec. 23. <b>[322C.0206] LIABILITY FOR INACCURATE INFORMATION IN </b><br/>
<a id="pl.18.27"></a><var>18.27</var><b>FILED RECORD.</b><br/>
<a id="pl.18.28"></a><var>18.28</var>    Subdivision 1. <b>Persons liable.</b> If a record filed with the secretary of state under this <br/>
<a id="pl.18.29"></a><var>18.29</var>chapter contains inaccurate information, a person that suffers a loss by reliance on the <br/>
<a id="pl.18.30"></a><var>18.30</var>information may recover damages for the loss from:<br/>
<a id="pl.18.31"></a><var>18.31</var>(1) a person that signed the record, or caused another to sign it on the person's <br/>
<a id="pl.18.32"></a><var>18.32</var>behalf, and knew the information to be inaccurate at the time the record was signed; and<br/>
<a id="pl.18.33"></a><var>18.33</var>(2) subject to subdivision 2, a member of a member-managed limited liability <br/>
<a id="pl.18.34"></a><var>18.34</var>company or the manager of a manager-managed limited liability company, if:<br/>
<a id="pl.18.35"></a><var>18.35</var>(i) the record was filed with the secretary of state on behalf of the company; and<br/>
<a id="pl.19.1"></a><var>19.1</var>(ii) the member or manager had notice of the inaccuracy for a reasonably sufficient <br/>
<a id="pl.19.2"></a><var>19.2</var>time before the information was relied upon so that, before the reliance, the member or <br/>
<a id="pl.19.3"></a><var>19.3</var>manager reasonably could have:<br/>
<a id="pl.19.4"></a><var>19.4</var>(A) effected an amendment under section 322C.0202;<br/>
<a id="pl.19.5"></a><var>19.5</var>(B) filed a petition under section 322C.0204; or<br/>
<a id="pl.19.6"></a><var>19.6</var>(C) filed with the secretary of state a statement under section 5.36, subdivision 3, or <br/>
<a id="pl.19.7"></a><var>19.7</var>articles of correction under section 5.16.<br/>
<a id="pl.19.8"></a><var>19.8</var>    Subd. 2. <b>Excepted members.</b> To the extent that the operating agreement of a <br/>
<a id="pl.19.9"></a><var>19.9</var>member-managed limited liability company expressly relieves a member of responsibility <br/>
<a id="pl.19.10"></a><var>19.10</var>for maintaining the accuracy of information contained in records filed with the secretary <br/>
<a id="pl.19.11"></a><var>19.11</var>of state under this chapter and imposes that responsibility on one or more other members, <br/>
<a id="pl.19.12"></a><var>19.12</var>the liability stated in subdivision 1, clause (2), applies to those other members and not to <br/>
<a id="pl.19.13"></a><var>19.13</var>the member that the operating agreement relieves of the responsibility.<br/>
<a id="pl.19.14"></a><var>19.14</var>    Subd. 3. <b>Penalty of perjury.</b> An individual who signs a record authorized or <br/>
<a id="pl.19.15"></a><var>19.15</var>required to be filed under this chapter affirms under penalty of perjury that the information <br/>
<a id="pl.19.16"></a><var>19.16</var>stated in the record is accurate.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.19.17"></a><var>19.17</var>    Sec. 24. <b>[322C.0207] CERTIFICATE OF EXISTENCE OR AUTHORIZATION.</b><br/>
<a id="pl.19.18"></a><var>19.18</var>The secretary of state, upon request and payment of the requisite fee, shall furnish to <br/>
<a id="pl.19.19"></a><var>19.19</var>any person a certificate of existence for a limited liability company pursuant to section 5.12.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.19.20"></a><var>19.20</var>    Sec. 25. <b>[322C.0208] ANNUAL REPORT FOR SECRETARY OF STATE.</b><br/>
<a id="pl.19.21"></a><var>19.21</var>(a) The secretary of state may send annually to each limited liability company, <br/>
<a id="pl.19.22"></a><var>19.22</var>using the information provided by the limited liability company and foreign limited <br/>
<a id="pl.19.23"></a><var>19.23</var>liability company pursuant to section 5.002 or 5.34 or the articles of organization, a notice <br/>
<a id="pl.19.24"></a><var>19.24</var>announcing the need to file the annual renewal and informing the limited liability company <br/>
<a id="pl.19.25"></a><var>19.25</var>that the annual renewal may be filed online and that paper filings may also be made, and <br/>
<a id="pl.19.26"></a><var>19.26</var>informing the limited liability company that failing to file the annual renewal will result <br/>
<a id="pl.19.27"></a><var>19.27</var>in an administrative termination of the limited liability company or the revocation of <br/>
<a id="pl.19.28"></a><var>19.28</var>the authority of the limited liability company and foreign limited liability company to <br/>
<a id="pl.19.29"></a><var>19.29</var>do business in Minnesota.<br/>
<a id="pl.19.30"></a><var>19.30</var>(b) Each calendar year beginning in the calendar year following the calendar year in <br/>
<a id="pl.19.31"></a><var>19.31</var>which a limited liability company and foreign limited liability company files articles of <br/>
<a id="pl.19.32"></a><var>19.32</var>organization, a limited liability company and foreign limited liability company must file <br/>
<a id="pl.19.33"></a><var>19.33</var>with the secretary of state by December 31 of each calendar year a renewal containing the <br/>
<a id="pl.19.34"></a><var>19.34</var>items required by section 5.34.<br/>

<a id="pl.20.2"></a><var>20.2</var><b>DEALING WITH LIMITED LIABILITY COMPANY</b><br/>

<a id="bill.1.26.0"></a><a id="pl.20.3"></a><var>20.3</var>    Sec. 26. <b>[322C.0301] NO AGENCY POWER OF MEMBER AS MEMBER.</b><br/>
<a id="pl.20.4"></a><var>20.4</var>    Subdivision 1. <b>No automatic agency.</b> A member is not an agent of a limited liability <br/>
<a id="pl.20.5"></a><var>20.5</var>company solely by reason of being a member.<br/>
<a id="pl.20.6"></a><var>20.6</var>    Subd. 2. <b>Other law not affected.</b> A person's status as a member does not prevent or <br/>
<a id="pl.20.7"></a><var>20.7</var>restrict law other than this chapter from imposing liability on a limited liability company <br/>
<a id="pl.20.8"></a><var>20.8</var>because of the person's conduct.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.20.9"></a><var>20.9</var>    Sec. 27. <b>[322C.0302] STATEMENT OF AUTHORITY.</b><br/>
<a id="pl.20.10"></a><var>20.10</var>    Subdivision 1. <b>Filing of statement with secretary of state; contents.</b> A limited <br/>
<a id="pl.20.11"></a><var>20.11</var>liability company may file with the secretary of state a statement of authority. The <br/>
<a id="pl.20.12"></a><var>20.12</var>statement:<br/>
<a id="pl.20.13"></a><var>20.13</var>(1) must include the name of the company and the street address of its registered <br/>
<a id="pl.20.14"></a><var>20.14</var>office;<br/>
<a id="pl.20.15"></a><var>20.15</var>(2) with respect to any position that exists in or with respect to the company, may <br/>
<a id="pl.20.16"></a><var>20.16</var>state the authority, or limitations on the authority, of all persons holding the position to:<br/>
<a id="pl.20.17"></a><var>20.17</var>(i) execute an instrument transferring real property held in the name of the company; <br/>
<a id="pl.20.18"></a><var>20.18</var>or<br/>
<a id="pl.20.19"></a><var>20.19</var>(ii) enter into other transactions on behalf of, or otherwise act for or bind, the <br/>
<a id="pl.20.20"></a><var>20.20</var>company; and<br/>
<a id="pl.20.21"></a><var>20.21</var>(3) may state the authority, or limitations on the authority, of a specific person to:<br/>
<a id="pl.20.22"></a><var>20.22</var>(i) execute an instrument transferring real property held in the name of the company; <br/>
<a id="pl.20.23"></a><var>20.23</var>or<br/>
<a id="pl.20.24"></a><var>20.24</var>(ii) enter into other transactions on behalf of, or otherwise act for or bind, the <br/>
<a id="pl.20.25"></a><var>20.25</var>company.<br/>
<a id="pl.20.26"></a><var>20.26</var>    Subd. 2. <b>Amendment or cancellation of statement.</b> To amend or cancel <br/>
<a id="pl.20.27"></a><var>20.27</var>a statement of authority filed with the secretary of state under section 322C.0205, <br/>
<a id="pl.20.28"></a><var>20.28</var>subdivision 1, a limited liability company must file with the secretary of state an <br/>
<a id="pl.20.29"></a><var>20.29</var>amendment or cancellation stating:<br/>
<a id="pl.20.30"></a><var>20.30</var>(1) the name of the company;<br/>
<a id="pl.20.31"></a><var>20.31</var>(2) the street address of the company's registered office;<br/>
<a id="pl.20.32"></a><var>20.32</var>(3) the caption of the statement being amended or canceled and the date the <br/>
<a id="pl.20.33"></a><var>20.33</var>statement being affected became effective; and<br/>
<a id="pl.21.1"></a><var>21.1</var>(4) the contents of the amendment or a declaration that the statement being affected <br/>
<a id="pl.21.2"></a><var>21.2</var>is canceled.<br/>
<a id="pl.21.3"></a><var>21.3</var>    Subd. 3. <b>Statements effective only as to nonmembers.</b> A statement of authority <br/>
<a id="pl.21.4"></a><var>21.4</var>affects only the power of a person to bind a limited liability company to persons that are <br/>
<a id="pl.21.5"></a><var>21.5</var>not members.<br/>
<a id="pl.21.6"></a><var>21.6</var>    Subd. 4. <b>Limitations of authority.</b> Subject to subdivision 3 and section 322C.0103, <br/>
<a id="pl.21.7"></a><var>21.7</var>subdivision 4, and except as otherwise provided in subdivisions 6, 7, and 8, a limitation on <br/>
<a id="pl.21.8"></a><var>21.8</var>the authority of a person or a position contained in an effective statement of authority is <br/>
<a id="pl.21.9"></a><var>21.9</var>not by itself evidence of knowledge or notice of the limitation by any person.<br/>
<a id="pl.21.10"></a><var>21.10</var>    Subd. 5. <b>Authority to transfer property other than real property.</b> Subject to <br/>
<a id="pl.21.11"></a><var>21.11</var>subdivision 3, a grant of authority not pertaining to transfers of real property and contained <br/>
<a id="pl.21.12"></a><var>21.12</var>in an effective statement of authority is conclusive in favor of a person that gives value in <br/>
<a id="pl.21.13"></a><var>21.13</var>reliance on the grant, except to the extent that when the person gives value:<br/>
<a id="pl.21.14"></a><var>21.14</var>(1) the person has knowledge to the contrary;<br/>
<a id="pl.21.15"></a><var>21.15</var>(2) the statement has been canceled or restrictively amended under subdivision 2; or<br/>
<a id="pl.21.16"></a><var>21.16</var>(3) a limitation on the grant is contained in another statement of authority that <br/>
<a id="pl.21.17"></a><var>21.17</var>became effective after the statement containing the grant became effective.<br/>
<a id="pl.21.18"></a><var>21.18</var>    Subd. 6. <b>Authority to transfer real property.</b> Subject to subdivision 3, an <br/>
<a id="pl.21.19"></a><var>21.19</var>effective statement of authority that grants authority to transfer real property held in the <br/>
<a id="pl.21.20"></a><var>21.20</var>name of the limited liability company, whether or not a certified copy of the statement is <br/>
<a id="pl.21.21"></a><var>21.21</var>recorded in the real property records, is conclusive in favor of a person that gives value in <br/>
<a id="pl.21.22"></a><var>21.22</var>reliance on the grant without knowledge to the contrary, except to the extent that when <br/>
<a id="pl.21.23"></a><var>21.23</var>the person gives value:<br/>
<a id="pl.21.24"></a><var>21.24</var>(1) the statement has been canceled or restrictively amended under subdivision 2 <br/>
<a id="pl.21.25"></a><var>21.25</var>and a certified copy of the cancellation or restrictive amendment has been recorded in the <br/>
<a id="pl.21.26"></a><var>21.26</var>real property records; or<br/>
<a id="pl.21.27"></a><var>21.27</var>(2) a limitation on the grant is contained in another statement of authority that <br/>
<a id="pl.21.28"></a><var>21.28</var>became effective after the statement containing the grant became effective and a certified <br/>
<a id="pl.21.29"></a><var>21.29</var>copy of the later-effective statement is recorded in the real property records.<br/>
<a id="pl.21.30"></a><var>21.30</var>    Subd. 7. <b>Recording; constructive notice regarding real property.</b> Subject to <br/>
<a id="pl.21.31"></a><var>21.31</var>subdivision 3, if a certified copy of an effective statement containing a limitation on <br/>
<a id="pl.21.32"></a><var>21.32</var>the authority to transfer real property held in the name of a limited liability company is <br/>
<a id="pl.21.33"></a><var>21.33</var>recorded in the real property records, all persons are deemed to know of the limitation.<br/>
<a id="pl.21.34"></a><var>21.34</var>    Subd. 8. <b>Statements of dissolution or termination.</b> Subject to subdivision 9, an <br/>
<a id="pl.21.35"></a><var>21.35</var>effective statement of dissolution or termination is a cancellation of any filed statement <br/>
<a id="pl.22.1"></a><var>22.1</var>of authority for the purposes of subdivision 6 and is a limitation on authority for the <br/>
<a id="pl.22.2"></a><var>22.2</var>purposes of subdivision 7.<br/>
<a id="pl.22.3"></a><var>22.3</var>    Subd. 9. <b>Postdissolution statements.</b> After a statement of dissolution becomes <br/>
<a id="pl.22.4"></a><var>22.4</var>effective, a limited liability company may file with the secretary of state and, if <br/>
<a id="pl.22.5"></a><var>22.5</var>appropriate, may record in the real property records, a statement of authority that is <br/>
<a id="pl.22.6"></a><var>22.6</var>designated as a postdissolution statement of authority. The statement operates as provided <br/>
<a id="pl.22.7"></a><var>22.7</var>in subdivisions 6 and 7.<br/>
<a id="pl.22.8"></a><var>22.8</var>    Subd. 10. <b>Statement of denial.</b> An effective statement of denial operates as a <br/>
<a id="pl.22.9"></a><var>22.9</var>restrictive amendment under this section and may be recorded by certified copy in the real <br/>
<a id="pl.22.10"></a><var>22.10</var>property records for the purposes of subdivision 6, clause (1).<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.22.11"></a><var>22.11</var>    Sec. 28. <b>[322C.0303] STATEMENT OF DENIAL.</b><br/>
<a id="pl.22.12"></a><var>22.12</var>A person named in a filed statement of authority granting that person authority may <br/>
<a id="pl.22.13"></a><var>22.13</var>file with the secretary of state for filing a statement of denial that:<br/>
<a id="pl.22.14"></a><var>22.14</var>(1) provides the name of the limited liability company and the caption of the <br/>
<a id="pl.22.15"></a><var>22.15</var>statement of authority to which the statement of denial pertains; and<br/>
<a id="pl.22.16"></a><var>22.16</var>(2) denies the grant of authority.<br/>
<br/>
<a id="bill.1.29.0"></a><a id="pl.22.17"></a><var>22.17</var>    Sec. 29. <b>[322C.0304] LIABILITY OF MEMBERS, MANAGERS, AND </b><br/>
<a id="pl.22.18"></a><var>22.18</var><b>GOVERNORS.</b><br/>
<a id="pl.22.19"></a><var>22.19</var>    Subdivision 1. <b>Liability shield for members, managers, and governors.</b> The <br/>
<a id="pl.22.20"></a><var>22.20</var>debts, obligations, or other liabilities of a limited liability company, whether arising in <br/>
<a id="pl.22.21"></a><var>22.21</var>contract, tort, or otherwise:<br/>
<a id="pl.22.22"></a><var>22.22</var>(1) are solely the debts, obligations, or other liabilities of the company; and<br/>
<a id="pl.22.23"></a><var>22.23</var>(2) do not become the debts, obligations, or other liabilities of a member, manager, <br/>
<a id="pl.22.24"></a><var>22.24</var>or governor solely by reason of the member acting as a member, manager acting as a <br/>
<a id="pl.22.25"></a><var>22.25</var>manager, or governor acting as a governor.<br/>
<a id="pl.22.26"></a><var>22.26</var>    Subd. 2. <b>Effect of lack of formalities.</b> The failure of a limited liability company to <br/>
<a id="pl.22.27"></a><var>22.27</var>observe formalities relating exclusively to the management of its internal affairs is not <br/>
<a id="pl.22.28"></a><var>22.28</var>a ground for imposing liability on the members, managers, or governors for the debts, <br/>
<a id="pl.22.29"></a><var>22.29</var>obligations, or other liabilities of the company.<br/>
<a id="pl.22.30"></a><var>22.30</var>    Subd. 3. <b>Piercing the veil.</b> Except as relates to the failure of a limited liability <br/>
<a id="pl.22.31"></a><var>22.31</var>company to observe any formalities relating exclusively to the management of its internal <br/>
<a id="pl.22.32"></a><var>22.32</var>affairs, the case law that states the conditions and circumstances under which the corporate <br/>
<a id="pl.22.33"></a><var>22.33</var>veil of a corporation may be pierced under Minnesota law also applies to limited liability <br/>
<a id="pl.22.34"></a><var>22.34</var>companies.<br/>

<a id="pl.23.2"></a><var>23.2</var><b>LIABILITY COMPANY</b><br/>

<a id="bill.1.30.0"></a><a id="pl.23.3"></a><var>23.3</var>    Sec. 30. <b>[322C.0401] BECOMING A MEMBER.</b><br/>
<a id="pl.23.4"></a><var>23.4</var>    Subdivision 1. <b>One initial member.</b> If a limited liability company is to have only <br/>
<a id="pl.23.5"></a><var>23.5</var>one member upon formation, the person becomes a member as agreed by that person and <br/>
<a id="pl.23.6"></a><var>23.6</var>the organizer of the company. That person and the organizer may be, but need not be, <br/>
<a id="pl.23.7"></a><var>23.7</var>different persons. If different, the organizer acts on behalf of the initial member.<br/>
<a id="pl.23.8"></a><var>23.8</var>    Subd. 2. <b>Multiple initial members.</b> If a limited liability company is to have more <br/>
<a id="pl.23.9"></a><var>23.9</var>than one member upon formation, those persons become members as agreed by the <br/>
<a id="pl.23.10"></a><var>23.10</var>persons before the formation of the company. The organizer acts on behalf of the persons <br/>
<a id="pl.23.11"></a><var>23.11</var>in forming the company and may be, but need not be, one of the persons.<br/>
<a id="pl.23.12"></a><var>23.12</var>    Subd. 3. <b>Shelf limited liability company.</b> If a limited liability company is to have <br/>
<a id="pl.23.13"></a><var>23.13</var>no members upon formation, a person becomes an initial member of the limited liability <br/>
<a id="pl.23.14"></a><var>23.14</var>company with the consent of a majority of the organizers. The organizers may consent to <br/>
<a id="pl.23.15"></a><var>23.15</var>more than one person simultaneously becoming the company's initial members.<br/>
<a id="pl.23.16"></a><var>23.16</var>    Subd. 4. <b>Subsequent members.</b> After a limited liability company has or has had at <br/>
<a id="pl.23.17"></a><var>23.17</var>least one member, a person becomes a member:<br/>
<a id="pl.23.18"></a><var>23.18</var>(1) as provided in the operating agreement;<br/>
<a id="pl.23.19"></a><var>23.19</var>(2) as the result of a transaction effective under sections 322C.1001 to 322C.1015;<br/>
<a id="pl.23.20"></a><var>23.20</var>(3) with the consent of all the members; or<br/>
<a id="pl.23.21"></a><var>23.21</var>(4) if, within 90 consecutive days after the company ceases to have any members:<br/>
<a id="pl.23.22"></a><var>23.22</var>(i) the last person to have been a member, or the legal representative of that person, <br/>
<a id="pl.23.23"></a><var>23.23</var>designates a person to become a member; and<br/>
<a id="pl.23.24"></a><var>23.24</var>(ii) the designated person consents to become a member.<br/>
<a id="pl.23.25"></a><var>23.25</var>    Subd. 5. <b>Neither transferable interest nor contribution required.</b> A person may <br/>
<a id="pl.23.26"></a><var>23.26</var>become a member without acquiring a transferable interest and without making or being <br/>
<a id="pl.23.27"></a><var>23.27</var>obligated to make a contribution to the limited liability company.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.23.28"></a><var>23.28</var>    Sec. 31. <b>[322C.0402] FORM OF CONTRIBUTION.</b><br/>
<a id="pl.23.29"></a><var>23.29</var>A contribution may consist of tangible or intangible property or other benefit to a <br/>
<a id="pl.23.30"></a><var>23.30</var>limited liability company, including money, services performed, promissory notes, other <br/>
<a id="pl.23.31"></a><var>23.31</var>agreements to contribute money or property, and contracts for services to be performed.<br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.23.32"></a><var>23.32</var>    Sec. 32. <b>[322C.0403] LIABILITY FOR CONTRIBUTIONS.</b><br/>
<a id="pl.24.1"></a><var>24.1</var>    Subdivision 1. <b>Impracticability no excuse.</b> A person's obligation to make a <br/>
<a id="pl.24.2"></a><var>24.2</var>contribution to a limited liability company is not excused by the person's death, disability, <br/>
<a id="pl.24.3"></a><var>24.3</var>or other inability to perform personally. If a person does not make a required contribution, <br/>
<a id="pl.24.4"></a><var>24.4</var>the person or the person's estate is obligated to contribute money equal to the value of the <br/>
<a id="pl.24.5"></a><var>24.5</var>part of the contribution which has not been made, at the option of the company.<br/>
<a id="pl.24.6"></a><var>24.6</var>    Subd. 2. <b>Creditor enforcement.</b> A creditor of a limited liability company which <br/>
<a id="pl.24.7"></a><var>24.7</var>extends credit or otherwise acts in reliance on an obligation described in subdivision 1 <br/>
<a id="pl.24.8"></a><var>24.8</var>may enforce the obligation.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.24.9"></a><var>24.9</var>    Sec. 33. <b>[322C.0404] SHARING OF AND RIGHT TO DISTRIBUTIONS </b><br/>
<a id="pl.24.10"></a><var>24.10</var><b>BEFORE DISSOLUTION.</b><br/>
<a id="pl.24.11"></a><var>24.11</var>    Subdivision 1. <b>Equal distributions.</b> Any distributions made by a limited liability <br/>
<a id="pl.24.12"></a><var>24.12</var>company before its dissolution and winding up must be in equal shares among members and <br/>
<a id="pl.24.13"></a><var>24.13</var>dissociated members, except to the extent necessary to comply with any transfer effective <br/>
<a id="pl.24.14"></a><var>24.14</var>under section 322C.0502 and any charging order in effect under section 322C.0503.<br/>
<a id="pl.24.15"></a><var>24.15</var>    Subd. 2. <b>Interim distributions.</b> A person has a right to a distribution before the <br/>
<a id="pl.24.16"></a><var>24.16</var>dissolution and winding up of a limited liability company only if the company decides <br/>
<a id="pl.24.17"></a><var>24.17</var>to make an interim distribution. A person's dissociation does not entitle the person to <br/>
<a id="pl.24.18"></a><var>24.18</var>a distribution.<br/>
<a id="pl.24.19"></a><var>24.19</var>    Subd. 3. <b>Form of distributions.</b> A person does not have a right to demand or receive <br/>
<a id="pl.24.20"></a><var>24.20</var>a distribution from a limited liability company in any form other than money. Except as <br/>
<a id="pl.24.21"></a><var>24.21</var>otherwise provided in section 322C.0707, subdivision 3, a limited liability company may <br/>
<a id="pl.24.22"></a><var>24.22</var>distribute an asset in kind if each part of the asset is fungible with each other part and each <br/>
<a id="pl.24.23"></a><var>24.23</var>person receives a percentage of the asset equal in value to the person's share of distributions.<br/>
<a id="pl.24.24"></a><var>24.24</var>    Subd. 4. <b>Parity with creditors.</b> If a member or transferee becomes entitled to receive <br/>
<a id="pl.24.25"></a><var>24.25</var>a distribution, the member or transferee has the status of, and is entitled to all remedies <br/>
<a id="pl.24.26"></a><var>24.26</var>available to, a creditor of the limited liability company with respect to the distribution.<br/>
<br/>
<a id="bill.1.34.0"></a><a id="pl.24.27"></a><var>24.27</var>    Sec. 34. <b>[322C.0405] LIMITATIONS ON DISTRIBUTION.</b><br/>
<a id="pl.24.28"></a><var>24.28</var>    Subdivision 1. <b>Distribution restrictions.</b> A limited liability company may not <br/>
<a id="pl.24.29"></a><var>24.29</var>make a distribution if after the distribution:<br/>
<a id="pl.24.30"></a><var>24.30</var>(1) the company would not be able to pay its debts as they become due in the <br/>
<a id="pl.24.31"></a><var>24.31</var>ordinary course of the company's activities; or<br/>
<a id="pl.24.32"></a><var>24.32</var>(2) the company's total assets would be less than the sum of its total liabilities plus <br/>
<a id="pl.24.33"></a><var>24.33</var>the amount that would be needed, if the company were to be dissolved, wound up, and <br/>
<a id="pl.24.34"></a><var>24.34</var>terminated at the time of the distribution, to satisfy the preferential rights upon dissolution, <br/>
<a id="pl.25.1"></a><var>25.1</var>winding up, and termination of members whose preferential rights are superior to those of <br/>
<a id="pl.25.2"></a><var>25.2</var>persons receiving the distribution.<br/>
<a id="pl.25.3"></a><var>25.3</var>    Subd. 2. <b>Basis for decision.</b> A limited liability company may base a determination <br/>
<a id="pl.25.4"></a><var>25.4</var>that a distribution is not prohibited under subdivision 1 on financial statements prepared <br/>
<a id="pl.25.5"></a><var>25.5</var>on the basis of accounting practices and principles that are reasonable in the circumstances <br/>
<a id="pl.25.6"></a><var>25.6</var>or on a fair valuation or other method that is reasonable under the circumstances.<br/>
<a id="pl.25.7"></a><var>25.7</var>    Subd. 3. <b>Effect of distribution.</b> Except as otherwise provided in subdivision 6, the <br/>
<a id="pl.25.8"></a><var>25.8</var>effect of a distribution under subdivision 1 is measured:<br/>
<a id="pl.25.9"></a><var>25.9</var>(1) in the case of a distribution by purchase, redemption, or other acquisition of a <br/>
<a id="pl.25.10"></a><var>25.10</var>transferable interest in the company, as of the date money or other property is transferred <br/>
<a id="pl.25.11"></a><var>25.11</var>or debt incurred by the company; and<br/>
<a id="pl.25.12"></a><var>25.12</var>(2) in all other cases, as of the date:<br/>
<a id="pl.25.13"></a><var>25.13</var>(i) the distribution is authorized, if the payment occurs within 120 days after that <br/>
<a id="pl.25.14"></a><var>25.14</var>date; or<br/>
<a id="pl.25.15"></a><var>25.15</var>(ii) the payment is made, if the payment occurs more than 120 days after the <br/>
<a id="pl.25.16"></a><var>25.16</var>distribution is authorized.<br/>
<a id="pl.25.17"></a><var>25.17</var>    Subd. 4. <b>Equivalent to unsecured creditors.</b> A limited liability company's <br/>
<a id="pl.25.18"></a><var>25.18</var>indebtedness to a member incurred by reason of a distribution made according to this <br/>
<a id="pl.25.19"></a><var>25.19</var>section is at parity with the company's indebtedness to its general, unsecured creditors.<br/>
<a id="pl.25.20"></a><var>25.20</var>    Subd. 5. <b>Exclusion from calculated indebtedness.</b> A limited liability company's <br/>
<a id="pl.25.21"></a><var>25.21</var>indebtedness, including indebtedness issued in connection with or as part of a distribution, <br/>
<a id="pl.25.22"></a><var>25.22</var>is not a liability for purposes of subdivision 1 if the terms of the indebtedness provide that <br/>
<a id="pl.25.23"></a><var>25.23</var>payment of principal and interest are made only to the extent that a distribution could <br/>
<a id="pl.25.24"></a><var>25.24</var>be made to members under this section.<br/>
<a id="pl.25.25"></a><var>25.25</var>    Subd. 6. <b>Indebtedness as distribution. </b> If indebtedness is issued as a distribution, <br/>
<a id="pl.25.26"></a><var>25.26</var>each payment of principal or interest on the indebtedness is treated as a distribution, the <br/>
<a id="pl.25.27"></a><var>25.27</var>effect of which is measured on the date the payment is made.<br/>
<a id="pl.25.28"></a><var>25.28</var>    Subd. 7. <b>Compensation not distribution. </b> In subdivision 1, "distribution" does not <br/>
<a id="pl.25.29"></a><var>25.29</var>include amounts constituting reasonable compensation for present or past services or <br/>
<a id="pl.25.30"></a><var>25.30</var>reasonable payments made in the ordinary course of business under a bona fide retirement <br/>
<a id="pl.25.31"></a><var>25.31</var>plan or other benefits program.<br/>
<br/>
<a id="bill.1.35.0"></a><a id="pl.25.32"></a><var>25.32</var>    Sec. 35. <b>[322C.0406] LIABILITY FOR IMPROPER DISTRIBUTIONS.</b><br/>
<a id="pl.25.33"></a><var>25.33</var>    Subdivision 1. <b>Personal liability for decision makers.</b>  Except as otherwise <br/>
<a id="pl.25.34"></a><var>25.34</var>provided in subdivision 2, if a member of a member-managed limited liability <br/>
<a id="pl.25.35"></a><var>25.35</var>company, manager of a manager-managed limited liability company, or governor of a <br/>
<a id="pl.26.1"></a><var>26.1</var>board-managed limited liability company consents to a distribution made in violation of <br/>
<a id="pl.26.2"></a><var>26.2</var>section 322C.0405 and in consenting to the distribution fails to comply with section <br/>
<a id="pl.26.3"></a><var>26.3</var>322C.0409, the member, manager, or governor is personally liable to the company for <br/>
<a id="pl.26.4"></a><var>26.4</var>the amount of the distribution that exceeds the amount that could have been distributed <br/>
<a id="pl.26.5"></a><var>26.5</var>without the violation of section 322C.0405.<br/>
<a id="pl.26.6"></a><var>26.6</var>    Subd. 2. <b>Liability exception.</b> To the extent the operating agreement of a <br/>
<a id="pl.26.7"></a><var>26.7</var>member-managed limited liability company expressly relieves a member of the authority <br/>
<a id="pl.26.8"></a><var>26.8</var>and responsibility to consent to distributions and imposes that authority and responsibility <br/>
<a id="pl.26.9"></a><var>26.9</var>on one or more other members, the liability stated in subdivision 1 applies to the other <br/>
<a id="pl.26.10"></a><var>26.10</var>members and not the member that the operating agreement relieves of authority and <br/>
<a id="pl.26.11"></a><var>26.11</var>responsibility.<br/>
<a id="pl.26.12"></a><var>26.12</var>    Subd. 3. <b>Liability of recipients.</b> A person that receives a distribution knowing that <br/>
<a id="pl.26.13"></a><var>26.13</var>the distribution to that person was made in violation of section 322C.0405 is personally <br/>
<a id="pl.26.14"></a><var>26.14</var>liable to the limited liability company but only to the extent that the distribution received <br/>
<a id="pl.26.15"></a><var>26.15</var>by the person exceeded the amount that could have been properly paid under section <br/>
<a id="pl.26.16"></a><var>26.16</var>322C.0405.<br/>
<a id="pl.26.17"></a><var>26.17</var>    Subd. 4. <b>Impleading.</b> A person against which an action is commenced because the <br/>
<a id="pl.26.18"></a><var>26.18</var>person is liable under subdivision 1 may:<br/>
<a id="pl.26.19"></a><var>26.19</var>(1) implead any other person that is subject to liability under subdivision 1 and seek <br/>
<a id="pl.26.20"></a><var>26.20</var>to compel pro rata contribution from the person in that action to the extent of the person's <br/>
<a id="pl.26.21"></a><var>26.21</var>liability as provided in section 322C.0406, subdivision 1; and<br/>
<a id="pl.26.22"></a><var>26.22</var>(2) implead any person that received a distribution in violation of section 322C.0405 <br/>
<a id="pl.26.23"></a><var>26.23</var>and seek to compel contribution from the person in the amount by which the distribution <br/>
<a id="pl.26.24"></a><var>26.24</var>received by the person exceeded the amount that could have been properly paid under <br/>
<a id="pl.26.25"></a><var>26.25</var>section 322C.0405.<br/>
<a id="pl.26.26"></a><var>26.26</var>    Subd. 5. <b>Statute of limitations.</b> An action under this section is barred if not <br/>
<a id="pl.26.27"></a><var>26.27</var>commenced within two years after the distribution.<br/>
<br/>
<a id="bill.1.36.0"></a><a id="pl.26.28"></a><var>26.28</var>    Sec. 36. <b>[322C.0407] MANAGEMENT OF LIMITED LIABILITY COMPANY.</b><br/>
<a id="pl.26.29"></a><var>26.29</var>    Subdivision 1. <b>Member-managed default.</b> A limited liability company is a <br/>
<a id="pl.26.30"></a><var>26.30</var>member-managed limited liability company unless the operating agreement:<br/>
<a id="pl.26.31"></a><var>26.31</var>(1) expressly provides that:<br/>
<a id="pl.26.32"></a><var>26.32</var>(i) the company is or will be "manager-managed" or "board-managed";<br/>
<a id="pl.26.33"></a><var>26.33</var>(ii) the company is or will be "managed by managers" or "managed by a board"; or<br/>
<a id="pl.26.34"></a><var>26.34</var>(iii) management of the company is or will be "vested in managers" or "vested <br/>
<a id="pl.26.35"></a><var>26.35</var>in a board"; or<br/>
<a id="pl.27.1"></a><var>27.1</var>(2) includes words of similar import.<br/>
<a id="pl.27.2"></a><var>27.2</var>    Subd. 2. <b>Member-managed company rules.</b> In a member-managed limited <br/>
<a id="pl.27.3"></a><var>27.3</var>liability company, the following rules apply:<br/>
<a id="pl.27.4"></a><var>27.4</var>(1) The management and conduct of the company are vested in the members.<br/>
<a id="pl.27.5"></a><var>27.5</var>(2) Each member has equal rights in the management and conduct of the company's <br/>
<a id="pl.27.6"></a><var>27.6</var>activities.<br/>
<a id="pl.27.7"></a><var>27.7</var>(3) A difference arising among members as to a matter in the ordinary course of the <br/>
<a id="pl.27.8"></a><var>27.8</var>activities of the company may be decided by a majority of the members.<br/>
<a id="pl.27.9"></a><var>27.9</var>(4) An act outside the ordinary course of the activities of the company may be <br/>
<a id="pl.27.10"></a><var>27.10</var>undertaken only with the consent of all members.<br/>
<a id="pl.27.11"></a><var>27.11</var>(5) The operating agreement may be amended only with the consent of all members.<br/>
<a id="pl.27.12"></a><var>27.12</var>    Subd. 3. <b>Manager-managed company rules.</b> In a manager-managed limited <br/>
<a id="pl.27.13"></a><var>27.13</var>liability company, the following rules apply:<br/>
<a id="pl.27.14"></a><var>27.14</var>(1) Except as otherwise expressly provided in this chapter, any matter relating to the <br/>
<a id="pl.27.15"></a><var>27.15</var>activities of the company is decided exclusively by the managers.<br/>
<a id="pl.27.16"></a><var>27.16</var>(2) Each manager has equal rights in the management and conduct of the activities <br/>
<a id="pl.27.17"></a><var>27.17</var>of the company.<br/>
<a id="pl.27.18"></a><var>27.18</var>(3) A difference arising among managers as to a matter in the ordinary course of the <br/>
<a id="pl.27.19"></a><var>27.19</var>activities of the company may be decided by a majority of the managers.<br/>
<a id="pl.27.20"></a><var>27.20</var>(4) The consent of all members is required to:<br/>
<a id="pl.27.21"></a><var>27.21</var>(i) sell, lease, exchange, or otherwise dispose of all, or substantially all, of the <br/>
<a id="pl.27.22"></a><var>27.22</var>company's property, with or without the good will, outside the ordinary course of the <br/>
<a id="pl.27.23"></a><var>27.23</var>company's activities;<br/>
<a id="pl.27.24"></a><var>27.24</var>(ii) approve a merger, conversion, or domestication under sections 322C.1001 to <br/>
<a id="pl.27.25"></a><var>27.25</var>322C.1015;<br/>
<a id="pl.27.26"></a><var>27.26</var>(iii) undertake any other act outside the ordinary course of the company's activities; <br/>
<a id="pl.27.27"></a><var>27.27</var>and<br/>
<a id="pl.27.28"></a><var>27.28</var>(iv) amend the operating agreement.<br/>
<a id="pl.27.29"></a><var>27.29</var>(5) A manager may be chosen at any time by the consent of a majority of the <br/>
<a id="pl.27.30"></a><var>27.30</var>members and remains a manager until a successor has been chosen, unless the manager <br/>
<a id="pl.27.31"></a><var>27.31</var>at an earlier time resigns, is removed, or dies, or, in the case of a manager that is not <br/>
<a id="pl.27.32"></a><var>27.32</var>an individual, terminates. A manager may be removed at any time by the consent of a <br/>
<a id="pl.27.33"></a><var>27.33</var>majority of the members without notice or cause.<br/>
<a id="pl.27.34"></a><var>27.34</var>(6) A person need not be a member to be a manager, but the dissociation of a <br/>
<a id="pl.27.35"></a><var>27.35</var>member that is also a manager removes the person as a manager. If a person that is both a <br/>
<a id="pl.28.1"></a><var>28.1</var>manager and a member ceases to be a manager, that cessation does not by itself dissociate <br/>
<a id="pl.28.2"></a><var>28.2</var>the person as a member.<br/>
<a id="pl.28.3"></a><var>28.3</var>(7) A person's ceasing to be a manager does not discharge any debt, obligation, or <br/>
<a id="pl.28.4"></a><var>28.4</var>other liability to the limited liability company or members which the person incurred <br/>
<a id="pl.28.5"></a><var>28.5</var>while a manager.<br/>
<a id="pl.28.6"></a><var>28.6</var>    Subd. 4. <b>Board-managed company rules.</b> In a board-managed limited liability <br/>
<a id="pl.28.7"></a><var>28.7</var>company, the following rules apply:<br/>
<a id="pl.28.8"></a><var>28.8</var>(1) The activities and affairs of a limited liability company are to be managed by and <br/>
<a id="pl.28.9"></a><var>28.9</var>under the direction of a board of governors, which shall consist of one or more governors <br/>
<a id="pl.28.10"></a><var>28.10</var>as determined by members holding a majority of the voting power of the members. Except <br/>
<a id="pl.28.11"></a><var>28.11</var>as specifically stated in this subdivision and section 322C.0204, subdivision 5:<br/>
<a id="pl.28.12"></a><var>28.12</var>(i) the board acts only through an act of the board;<br/>
<a id="pl.28.13"></a><var>28.13</var>(ii) no individual governor has any right or power to act for the limited liability <br/>
<a id="pl.28.14"></a><var>28.14</var>company; and<br/>
<a id="pl.28.15"></a><var>28.15</var>(iii) only officers, managers, or other agents designated by the board or through a <br/>
<a id="pl.28.16"></a><var>28.16</var>process approved by the board have the right to act for the limited liability company, and <br/>
<a id="pl.28.17"></a><var>28.17</var>that right extends only to the extent consistent with the terms of the designation.<br/>
<a id="pl.28.18"></a><var>28.18</var>(2) A governor must be a natural person. A person need not be a member to be a <br/>
<a id="pl.28.19"></a><var>28.19</var>governor, but the dissociation of a member who is also a governor disqualifies the person <br/>
<a id="pl.28.20"></a><var>28.20</var>as a governor. If a person who is both a governor and a member ceases to be a governor, <br/>
<a id="pl.28.21"></a><var>28.21</var>that cessation does not by itself dissociate the person as a member. A person's ceasing <br/>
<a id="pl.28.22"></a><var>28.22</var>to be a governor does not discharge any debt, obligation, or other liability to the limited <br/>
<a id="pl.28.23"></a><var>28.23</var>liability company or members which the person incurred while a governor.<br/>
<a id="pl.28.24"></a><var>28.24</var>(3) The method of election and any additional qualifications for governors will <br/>
<a id="pl.28.25"></a><var>28.25</var>be as determined by members holding a majority of the voting power of the members. <br/>
<a id="pl.28.26"></a><var>28.26</var>Governors are elected by a plurality of the voting power present and entitled to vote on the <br/>
<a id="pl.28.27"></a><var>28.27</var>election of governors at a duly called or held meeting at which a quorum is present.<br/>
<a id="pl.28.28"></a><var>28.28</var>(4) A member may waive notice of a meeting for the election of governors. A <br/>
<a id="pl.28.29"></a><var>28.29</var>member's waiver of notice under this clause is effective whether given before, at, or after <br/>
<a id="pl.28.30"></a><var>28.30</var>the meeting, and whether given in a record, orally, or by attendance. Attendance by a <br/>
<a id="pl.28.31"></a><var>28.31</var>member at a meeting for election of governors is a waiver of notice of that meeting, <br/>
<a id="pl.28.32"></a><var>28.32</var>except where the member objects at the beginning of the meeting to the transaction of <br/>
<a id="pl.28.33"></a><var>28.33</var>business because the meeting is not lawfully called or convened and does not participate <br/>
<a id="pl.28.34"></a><var>28.34</var>in the meeting after the objection.<br/>
<a id="pl.28.35"></a><var>28.35</var>(5) Once elected, a governor holds office for the term for which the governor <br/>
<a id="pl.28.36"></a><var>28.36</var>was elected and until a successor is elected, or until the earlier death, resignation, <br/>
<a id="pl.29.1"></a><var>29.1</var>disqualification, or removal of the governor. A governor may resign at any time. A <br/>
<a id="pl.29.2"></a><var>29.2</var>governor may be removed at any time, without cause and without advance notice, by a <br/>
<a id="pl.29.3"></a><var>29.3</var>majority of the voting power of all of the members. The existence of vacancies does not <br/>
<a id="pl.29.4"></a><var>29.4</var>affect the power of the board to function if at least one governor remains in office.<br/>
<a id="pl.29.5"></a><var>29.5</var>(6) When a vacancy occurs, the limited liability company shall immediately notify <br/>
<a id="pl.29.6"></a><var>29.6</var>all members in a record of the vacancy, stating the cause of the vacancy and the date the <br/>
<a id="pl.29.7"></a><var>29.7</var>notice is sent. Within 30 days of that date, the members may fill the vacancy in the same <br/>
<a id="pl.29.8"></a><var>29.8</var>method the members may elect governors under clause (3). If the vacancy is not filled <br/>
<a id="pl.29.9"></a><var>29.9</var>by the members under this clause, the vacancy may be filled by the affirmative vote of a <br/>
<a id="pl.29.10"></a><var>29.10</var>majority of the remaining governors, even though less than a quorum.<br/>
<a id="pl.29.11"></a><var>29.11</var>(7) The board shall meet from time to time as determined by members holding a <br/>
<a id="pl.29.12"></a><var>29.12</var>majority of the voting power of the members, at a place decided by the board. If the day <br/>
<a id="pl.29.13"></a><var>29.13</var>or date, time, and place of a board of governors meeting have been provided in a board <br/>
<a id="pl.29.14"></a><var>29.14</var>resolution, or announced at a previous meeting of the board of governors, no notice is <br/>
<a id="pl.29.15"></a><var>29.15</var>required. Notice of an adjourned meeting need not be given other than by announcement <br/>
<a id="pl.29.16"></a><var>29.16</var>at the meeting at which adjournment is taken. If notice is required for a meeting, notice <br/>
<a id="pl.29.17"></a><var>29.17</var>shall be made in the manner stated in clause (8).<br/>
<a id="pl.29.18"></a><var>29.18</var>(8) A governor may call a board meeting by giving at least ten days' notice in a <br/>
<a id="pl.29.19"></a><var>29.19</var>record to all governors of the date, time, and place of the meeting. The notice need not <br/>
<a id="pl.29.20"></a><var>29.20</var>state the purpose of the meeting. As to each governor, the notice is effective when given.<br/>
<a id="pl.29.21"></a><var>29.21</var>(i) Notice may be:<br/>
<a id="pl.29.22"></a><var>29.22</var>(A) mailed to the governor at an address designated by the person or at the last <br/>
<a id="pl.29.23"></a><var>29.23</var>known address of the person;<br/>
<a id="pl.29.24"></a><var>29.24</var>(B) deposited with a nationally recognized overnight delivery service for overnight <br/>
<a id="pl.29.25"></a><var>29.25</var>delivery or, if overnight delivery to the governor is not available, for delivery as promptly <br/>
<a id="pl.29.26"></a><var>29.26</var>as practicable to the governor at an address designated by the governor or at the last <br/>
<a id="pl.29.27"></a><var>29.27</var>known address of the governor;<br/>
<a id="pl.29.28"></a><var>29.28</var>(C) communicated to the governor orally;<br/>
<a id="pl.29.29"></a><var>29.29</var>(D) handed to the governor;<br/>
<a id="pl.29.30"></a><var>29.30</var>(E) given by facsimile communication, electronic mail, or any other form of <br/>
<a id="pl.29.31"></a><var>29.31</var>electronic communication, if the governor has consented in a record to receive notice <br/>
<a id="pl.29.32"></a><var>29.32</var>by such means; or<br/>
<a id="pl.29.33"></a><var>29.33</var>(F) by any other means determined by members holding a majority of the voting <br/>
<a id="pl.29.34"></a><var>29.34</var>power of the members.<br/>
<a id="pl.29.35"></a><var>29.35</var>(ii) The notice is deemed given if by:<br/>
<a id="pl.29.36"></a><var>29.36</var>(A) mail, when deposited in the United States mail with sufficient postage affixed;<br/>
<a id="pl.30.1"></a><var>30.1</var>(B) by deposit for delivery, when deposited for delivery as provided in item (i), <br/>
<a id="pl.30.2"></a><var>30.2</var>subitem (B), with delivery charges prepaid or otherwise provided for by the sender;<br/>
<a id="pl.30.3"></a><var>30.3</var>(C) facsimile communication, when directed to a telephone number at which the <br/>
<a id="pl.30.4"></a><var>30.4</var>governor has consented in a record to receive notice;<br/>
<a id="pl.30.5"></a><var>30.5</var>(D) electronic mail, when directed to an electronic mail address at which the <br/>
<a id="pl.30.6"></a><var>30.6</var>governor has consented in a record to receive notice; and<br/>
<a id="pl.30.7"></a><var>30.7</var>(E) any other form of electronic communication by which the governor has <br/>
<a id="pl.30.8"></a><var>30.8</var>consented in a record to receive notice, when directed to the governor.<br/>
<a id="pl.30.9"></a><var>30.9</var>(9) A governor may waive notice of a meeting of the board of governors. A waiver <br/>
<a id="pl.30.10"></a><var>30.10</var>of notice by a governor entitled to notice is effective whether given before, at, or after the <br/>
<a id="pl.30.11"></a><var>30.11</var>meeting, and whether given in a record, orally, or by attendance. Attendance by a governor <br/>
<a id="pl.30.12"></a><var>30.12</var>at a meeting is a waiver of notice of that meeting, except where the governor objects at the <br/>
<a id="pl.30.13"></a><var>30.13</var>beginning of the meeting to the transaction of business because the meeting is not lawfully <br/>
<a id="pl.30.14"></a><var>30.14</var>called or convened and does not participate in the meeting after the objection.<br/>
<a id="pl.30.15"></a><var>30.15</var>(10) A majority of the governors currently holding office is a quorum for the <br/>
<a id="pl.30.16"></a><var>30.16</var>transaction of business. When a quorum is present at a duly called or held meeting of <br/>
<a id="pl.30.17"></a><var>30.17</var>the board, the vote of a majority of the directors present constitutes an act of the board. <br/>
<a id="pl.30.18"></a><var>30.18</var>If a quorum is present when a duly called or held meeting is convened, the governors <br/>
<a id="pl.30.19"></a><var>30.19</var>present may continue to transact business until adjournment, even though the withdrawal <br/>
<a id="pl.30.20"></a><var>30.20</var>of a number of governors originally present leaves less than the proportion or number <br/>
<a id="pl.30.21"></a><var>30.21</var>otherwise required for a quorum.<br/>
<a id="pl.30.22"></a><var>30.22</var>(11) Any meeting among governors may be conducted solely by one or more means <br/>
<a id="pl.30.23"></a><var>30.23</var>of remote communication through which all of the governors may participate with each <br/>
<a id="pl.30.24"></a><var>30.24</var>other during the meeting, if the number of governors participating in the meeting would <br/>
<a id="pl.30.25"></a><var>30.25</var>be sufficient to constitute a quorum. Participation in a meeting by that means constitutes <br/>
<a id="pl.30.26"></a><var>30.26</var>presence in person at the meeting.<br/>
<a id="pl.30.27"></a><var>30.27</var>(12) A governor may participate in a board of governors meeting by means of <br/>
<a id="pl.30.28"></a><var>30.28</var>remote communication, through which the governor, other governors so participating, and <br/>
<a id="pl.30.29"></a><var>30.29</var>all governors physically present at the meeting may participate with each other during <br/>
<a id="pl.30.30"></a><var>30.30</var>the meeting. Participation in a meeting by that means constitutes presence in person <br/>
<a id="pl.30.31"></a><var>30.31</var>at the meeting.<br/>
<a id="pl.30.32"></a><var>30.32</var>(13) An action required or permitted to be taken at a board meeting may be taken <br/>
<a id="pl.30.33"></a><var>30.33</var>by written action signed by the number of governors that would be required to take the <br/>
<a id="pl.30.34"></a><var>30.34</var>same action at a meeting of the board of governors at which all governors were present. <br/>
<a id="pl.30.35"></a><var>30.35</var>The written action is effective when signed by the required number of governors, unless a <br/>
<a id="pl.30.36"></a><var>30.36</var>different effective time is provided in the written action. When written action is permitted <br/>
<a id="pl.31.1"></a><var>31.1</var>to be taken by less than all governors, all governors must be notified immediately of its <br/>
<a id="pl.31.2"></a><var>31.2</var>text and effective date. Failure to provide the notice does not invalidate the written action. <br/>
<a id="pl.31.3"></a><var>31.3</var>A governor who does not sign or consent to the written action has no liability for the <br/>
<a id="pl.31.4"></a><var>31.4</var>action or actions taken by the written action.<br/>
<a id="pl.31.5"></a><var>31.5</var>(14) If the board designates a person as "chief manager," "president," "chief <br/>
<a id="pl.31.6"></a><var>31.6</var>executive officer," "CEO," or another title of similar import, that person shall:<br/>
<a id="pl.31.7"></a><var>31.7</var>(i) serve as an agent of the limited liability company at the will of the board, without <br/>
<a id="pl.31.8"></a><var>31.8</var>prejudice to any rights the person may have under a contract with the limited liability <br/>
<a id="pl.31.9"></a><var>31.9</var>company;<br/>
<a id="pl.31.10"></a><var>31.10</var>(ii) have general active management of the business of the limited liability company, <br/>
<a id="pl.31.11"></a><var>31.11</var>subject to the supervision and control of the board;<br/>
<a id="pl.31.12"></a><var>31.12</var>(iii) see that all orders and resolutions of the board of governors are carried into effect;<br/>
<a id="pl.31.13"></a><var>31.13</var>(iv) sign and deliver in the name of the limited liability company any deeds, <br/>
<a id="pl.31.14"></a><var>31.14</var>mortgages, bonds, contracts, or other instruments pertaining to the business of the limited <br/>
<a id="pl.31.15"></a><var>31.15</var>liability company, except in cases in which the authority to sign and deliver is required by <br/>
<a id="pl.31.16"></a><var>31.16</var>law to be exercised by another person or is expressly delegated by the board of governors <br/>
<a id="pl.31.17"></a><var>31.17</var>to some other officer or agent of the limited liability company;<br/>
<a id="pl.31.18"></a><var>31.18</var>(v) maintain records of and, whenever necessary, certify all proceedings of the <br/>
<a id="pl.31.19"></a><var>31.19</var>board of governors and the members; and<br/>
<a id="pl.31.20"></a><var>31.20</var>(vi) perform other duties prescribed by the board of governors.<br/>
<a id="pl.31.21"></a><var>31.21</var>(15) If the board designates a person as "treasurer," "chief financial officer," "CFO," <br/>
<a id="pl.31.22"></a><var>31.22</var>or another title of similar import, that person shall:<br/>
<a id="pl.31.23"></a><var>31.23</var>(i) serve as an agent of the limited liability company at the will of the board, without <br/>
<a id="pl.31.24"></a><var>31.24</var>prejudice to any rights the person may have under a contract with the limited liability <br/>
<a id="pl.31.25"></a><var>31.25</var>company;<br/>
<a id="pl.31.26"></a><var>31.26</var>(ii) keep accurate financial records for the limited liability company;<br/>
<a id="pl.31.27"></a><var>31.27</var>(iii) deposit all money, drafts, and checks in the name of and to the credit of the limited <br/>
<a id="pl.31.28"></a><var>31.28</var>liability company in the banks and depositories designated by the board of governors;<br/>
<a id="pl.31.29"></a><var>31.29</var>(iv) endorse for deposit all notes, checks, and drafts received by the limited liability <br/>
<a id="pl.31.30"></a><var>31.30</var>company as ordered by the board of governors, making proper vouchers for them;<br/>
<a id="pl.31.31"></a><var>31.31</var>(v) disburse limited liability company funds and issue checks and drafts in the name <br/>
<a id="pl.31.32"></a><var>31.32</var>of the limited liability company, as ordered by the board of governors;<br/>
<a id="pl.31.33"></a><var>31.33</var>(vi) give to the chief executive officer and the board of governors, whenever <br/>
<a id="pl.31.34"></a><var>31.34</var>requested, an account of all transactions by the chief financial officer and of the financial <br/>
<a id="pl.31.35"></a><var>31.35</var>condition of the limited liability company; and<br/>
<a id="pl.32.1"></a><var>32.1</var>(vii) perform other duties prescribed by the board of governors or by the chief <br/>
<a id="pl.32.2"></a><var>32.2</var>executive officer.<br/>
<a id="pl.32.3"></a><var>32.3</var>(16) The consent of all members is required to:<br/>
<a id="pl.32.4"></a><var>32.4</var>(i) sell, lease, exchange, or otherwise dispose of all, or substantially all, of the <br/>
<a id="pl.32.5"></a><var>32.5</var>company's property, with or without the good will, outside the ordinary course of the <br/>
<a id="pl.32.6"></a><var>32.6</var>company's activities;<br/>
<a id="pl.32.7"></a><var>32.7</var>(ii) approve a merger, conversion, or domestication under sections 322C.1001 to <br/>
<a id="pl.32.8"></a><var>32.8</var>322C.1015; and<br/>
<a id="pl.32.9"></a><var>32.9</var>(iii) amend the operating agreement.<br/>
<a id="pl.32.10"></a><var>32.10</var>(17) For purposes of this subdivision, each member possesses voting power in <br/>
<a id="pl.32.11"></a><var>32.11</var>proportion to the member's interest in then current profits of the limited liability company <br/>
<a id="pl.32.12"></a><var>32.12</var>and a majority of the voting power of the members is a quorum at a meeting of the members.<br/>
<a id="pl.32.13"></a><var>32.13</var>    Subd. 5. <b>Member consent.</b> Any member may demand a meeting of the members to <br/>
<a id="pl.32.14"></a><var>32.14</var>take action requiring consent of members under this chapter upon not less than 20 days' <br/>
<a id="pl.32.15"></a><var>32.15</var>notice to each member in a record of the date and time of the meeting. Any meeting <br/>
<a id="pl.32.16"></a><var>32.16</var>held upon member notice shall be held at the limited liability company's principal <br/>
<a id="pl.32.17"></a><var>32.17</var>place of business if located within this state, and at the registered office if the principal <br/>
<a id="pl.32.18"></a><var>32.18</var>place of business is not located within the state. Any action requiring the consent of <br/>
<a id="pl.32.19"></a><var>32.19</var>members under this chapter may be taken or approved without a meeting by the written <br/>
<a id="pl.32.20"></a><var>32.20</var>consent of the members holding the voting power required to take such action at a duly <br/>
<a id="pl.32.21"></a><var>32.21</var>called meeting at which all members were present. A member may appoint a proxy or <br/>
<a id="pl.32.22"></a><var>32.22</var>other agent to consent or otherwise act for the member by signing an appointing record, <br/>
<a id="pl.32.23"></a><var>32.23</var>personally or by the member's agent.<br/>
<a id="pl.32.24"></a><var>32.24</var>    Subd. 6. <b>Impact of dissolution.</b> The dissolution of a limited liability company does <br/>
<a id="pl.32.25"></a><var>32.25</var>not affect the applicability of this section. However, a person that wrongfully causes <br/>
<a id="pl.32.26"></a><var>32.26</var>dissolution of the company loses the right to participate in management in any capacity.<br/>
<a id="pl.32.27"></a><var>32.27</var>    Subd. 7. <b>Remuneration.</b> This chapter does not entitle a member to remuneration <br/>
<a id="pl.32.28"></a><var>32.28</var>for services performed for a member-managed limited liability company, except for <br/>
<a id="pl.32.29"></a><var>32.29</var>reasonable compensation for services rendered in winding up the activities of the company.<br/>
<br/>
<a id="bill.1.37.0"></a><a id="pl.32.30"></a><var>32.30</var>    Sec. 37. <b>[322C.0408] INDEMNIFICATION AND INSURANCE.</b><br/>
<a id="pl.32.31"></a><var>32.31</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the terms defined in this <br/>
<a id="pl.32.32"></a><var>32.32</var>subdivision have the meanings given them.<br/>
<a id="pl.32.33"></a><var>32.33</var>(b) "Limited liability company" includes a domestic or foreign limited liability <br/>
<a id="pl.32.34"></a><var>32.34</var>company that was the predecessor of the limited liability company referred to in this <br/>
<a id="pl.33.1"></a><var>33.1</var>section in a merger or other transaction in which the predecessor's existence ceased upon <br/>
<a id="pl.33.2"></a><var>33.2</var>consummation of the transaction.<br/>
<a id="pl.33.3"></a><var>33.3</var>(c) "Official capacity" means (1) with respect to a member of a member-managed <br/>
<a id="pl.33.4"></a><var>33.4</var>company, a manager of a manager-managed company, or a governor of a board-managed <br/>
<a id="pl.33.5"></a><var>33.5</var>company, actions taken in that capacity, (2) with respect to a person other than a member <br/>
<a id="pl.33.6"></a><var>33.6</var>of a member-managed company, a manager of a manager-managed company, or a <br/>
<a id="pl.33.7"></a><var>33.7</var>governor of a board-managed company, the elective or appointive office or position <br/>
<a id="pl.33.8"></a><var>33.8</var>held by a manager or officer, member of a committee of the board of governors, the <br/>
<a id="pl.33.9"></a><var>33.9</var>employment relationship undertaken by an employee of the limited liability company, or <br/>
<a id="pl.33.10"></a><var>33.10</var>the scope of the services provided by members of the limited liability company who <br/>
<a id="pl.33.11"></a><var>33.11</var>provide services to the limited liability company, and (3) with respect to a governor, <br/>
<a id="pl.33.12"></a><var>33.12</var>manager, member, or employee of the limited liability company who, while a member, <br/>
<a id="pl.33.13"></a><var>33.13</var>governor, manager, or employee of the limited liability company, is or was serving at <br/>
<a id="pl.33.14"></a><var>33.14</var>the request of the limited liability company or whose duties in that position involve or <br/>
<a id="pl.33.15"></a><var>33.15</var>involved service as a governor, director, manager, officer, member, partner, trustee, <br/>
<a id="pl.33.16"></a><var>33.16</var>employee, or agent of another organization or employee benefit plan, the position of that <br/>
<a id="pl.33.17"></a><var>33.17</var>person as a governor, director, manager, officer, member, partner, trustee, employee, or <br/>
<a id="pl.33.18"></a><var>33.18</var>agent, as the case may be, of the other organization or employee benefit plan.<br/>
<a id="pl.33.19"></a><var>33.19</var>(d) "Proceeding" means a threatened, pending, or completed civil, criminal, <br/>
<a id="pl.33.20"></a><var>33.20</var>administrative, arbitration, or investigative proceeding, including a proceeding by or in <br/>
<a id="pl.33.21"></a><var>33.21</var>the right of the limited liability company.<br/>
<a id="pl.33.22"></a><var>33.22</var>(e) "Special legal counsel" means counsel who has not in the preceding five years <br/>
<a id="pl.33.23"></a><var>33.23</var>(1) represented the limited liability company or a related organization in a capacity other <br/>
<a id="pl.33.24"></a><var>33.24</var>than special legal counsel, or (2) represented a member, governor, manager, member of a <br/>
<a id="pl.33.25"></a><var>33.25</var>committee of the board of governors, or employee, or other person whose indemnification <br/>
<a id="pl.33.26"></a><var>33.26</var>is in issue.<br/>
<a id="pl.33.27"></a><var>33.27</var>    Subd. 2. <b>Indemnification.</b> (a) Subject to the provisions of subdivision 4, a limited <br/>
<a id="pl.33.28"></a><var>33.28</var>liability company shall indemnify a person made or threatened to be made a party to a <br/>
<a id="pl.33.29"></a><var>33.29</var>proceeding by reason of the former or present official capacity of the person against <br/>
<a id="pl.33.30"></a><var>33.30</var>judgments, penalties, fines, including, without limitation, excise taxes assessed against the <br/>
<a id="pl.33.31"></a><var>33.31</var>person with respect to an employee benefit plan, settlements, and reasonable expenses, <br/>
<a id="pl.33.32"></a><var>33.32</var>including attorney fees and disbursements, incurred by the person in connection with the <br/>
<a id="pl.33.33"></a><var>33.33</var>proceeding, if, with respect to the acts or omissions of the person complained of in the <br/>
<a id="pl.33.34"></a><var>33.34</var>proceeding, the person:<br/>
<a id="pl.33.35"></a><var>33.35</var>(1) has not been indemnified by another organization or employee benefit plan for <br/>
<a id="pl.33.36"></a><var>33.36</var>the same judgments, penalties, fines, including, without limitation, excise taxes assessed <br/>
<a id="pl.34.1"></a><var>34.1</var>against the person with respect to an employee benefit plan, settlements, and reasonable <br/>
<a id="pl.34.2"></a><var>34.2</var>expenses, including attorney fees and disbursements, incurred by the person in connection <br/>
<a id="pl.34.3"></a><var>34.3</var>with the proceeding with respect to the same acts or omissions;<br/>
<a id="pl.34.4"></a><var>34.4</var>(2) acted in good faith;<br/>
<a id="pl.34.5"></a><var>34.5</var>(3) received no improper personal benefit and complied with the duties stated in <br/>
<a id="pl.34.6"></a><var>34.6</var>sections 322C.0405 and 322C.0409, if applicable;<br/>
<a id="pl.34.7"></a><var>34.7</var>(4) in the case of a criminal proceeding, had no reasonable cause to believe the <br/>
<a id="pl.34.8"></a><var>34.8</var>conduct was unlawful; and<br/>
<a id="pl.34.9"></a><var>34.9</var>(5) in the case of acts or omissions occurring in the official capacity described in <br/>
<a id="pl.34.10"></a><var>34.10</var>subdivision 1, paragraph (c), clause (1) or (2), reasonably believed that the conduct was <br/>
<a id="pl.34.11"></a><var>34.11</var>in the best interests of the limited liability company, or in the case of acts or omissions <br/>
<a id="pl.34.12"></a><var>34.12</var>occurring in the official capacity described in subdivision 1, paragraph (c), clause (3), <br/>
<a id="pl.34.13"></a><var>34.13</var>reasonably believed that the conduct was not opposed to the best interests of the limited <br/>
<a id="pl.34.14"></a><var>34.14</var>liability company. If the person's acts or omissions complained of in the proceeding relate <br/>
<a id="pl.34.15"></a><var>34.15</var>to conduct as a director, officer, trustee, employee, or agent of an employee benefit plan, <br/>
<a id="pl.34.16"></a><var>34.16</var>the conduct is not considered to be opposed to the best interests of the limited liability <br/>
<a id="pl.34.17"></a><var>34.17</var>company if the person reasonably believed that the conduct was in the best interests of the <br/>
<a id="pl.34.18"></a><var>34.18</var>participants or beneficiaries of the employee benefit plan.<br/>
<a id="pl.34.19"></a><var>34.19</var>(b) The termination of a proceeding by judgment, order, settlement, conviction, or <br/>
<a id="pl.34.20"></a><var>34.20</var>upon a plea of nolo contendere or its equivalent does not, of itself, establish that the <br/>
<a id="pl.34.21"></a><var>34.21</var>person did not meet the criteria set forth in this subdivision.<br/>
<a id="pl.34.22"></a><var>34.22</var>    Subd. 3. <b>Advances.</b> Subject to the provisions of subdivision 4, if a person is made <br/>
<a id="pl.34.23"></a><var>34.23</var>or threatened to be made a party to a proceeding, the person is entitled, upon written <br/>
<a id="pl.34.24"></a><var>34.24</var>request to the limited liability company, to payment or reimbursement by the limited <br/>
<a id="pl.34.25"></a><var>34.25</var>liability company of reasonable expenses, including attorney fees and disbursements, <br/>
<a id="pl.34.26"></a><var>34.26</var>incurred by the person in advance of the final disposition of the proceeding:<br/>
<a id="pl.34.27"></a><var>34.27</var>(1) upon receipt by the limited liability company of a written affirmation by the <br/>
<a id="pl.34.28"></a><var>34.28</var>person of a good faith belief that the criteria for indemnification in subdivision 2 have <br/>
<a id="pl.34.29"></a><var>34.29</var>been satisfied and a written undertaking by the person to repay all amounts so paid or <br/>
<a id="pl.34.30"></a><var>34.30</var>reimbursed by the limited liability company, if it is ultimately determined that the criteria <br/>
<a id="pl.34.31"></a><var>34.31</var>for indemnification have not been satisfied; and<br/>
<a id="pl.34.32"></a><var>34.32</var>(2) after a determination that the facts then known to those making the determination <br/>
<a id="pl.34.33"></a><var>34.33</var>would not preclude indemnification under this section.<br/>
<a id="pl.34.34"></a><var>34.34</var>The written undertaking required by clause (1) is an unlimited general obligation of <br/>
<a id="pl.34.35"></a><var>34.35</var>the person making it, but need not be secured and shall be accepted without reference to <br/>
<a id="pl.34.36"></a><var>34.36</var>financial ability to make the repayment.<br/>
<a id="pl.35.1"></a><var>35.1</var>    Subd. 4. <b>Prohibition or limit on indemnification or advances.</b> The articles of <br/>
<a id="pl.35.2"></a><var>35.2</var>organization or the operating agreement either may prohibit indemnification or advances of <br/>
<a id="pl.35.3"></a><var>35.3</var>expenses otherwise required by this section or may impose conditions on indemnification <br/>
<a id="pl.35.4"></a><var>35.4</var>or advances of expenses in addition to the conditions contained in subdivisions 2 and 3 <br/>
<a id="pl.35.5"></a><var>35.5</var>including, without limitation, monetary limits on indemnification or advances of expenses, <br/>
<a id="pl.35.6"></a><var>35.6</var>if the conditions apply equally to all persons or to all persons within a given class. A <br/>
<a id="pl.35.7"></a><var>35.7</var>prohibition or limit on indemnification or advances may not apply to or affect the right <br/>
<a id="pl.35.8"></a><var>35.8</var>of a person to indemnification or advances of expenses with respect to any acts or <br/>
<a id="pl.35.9"></a><var>35.9</var>omissions of the person occurring before the effective date of a provision in the articles of <br/>
<a id="pl.35.10"></a><var>35.10</var>organization, a member control agreement, or the date of adoption of a provision in the <br/>
<a id="pl.35.11"></a><var>35.11</var>bylaws establishing the prohibition or limit on indemnification or advances.<br/>
<a id="pl.35.12"></a><var>35.12</var>    Subd. 5. <b>Reimbursement to witnesses.</b> This section does not require, or limit the <br/>
<a id="pl.35.13"></a><var>35.13</var>ability of, a limited liability company to reimburse expenses, including attorney fees <br/>
<a id="pl.35.14"></a><var>35.14</var>and disbursements, incurred by a person in connection with an appearance as a witness <br/>
<a id="pl.35.15"></a><var>35.15</var>in a proceeding at a time when the person has not been made or threatened to be made <br/>
<a id="pl.35.16"></a><var>35.16</var>a party to a proceeding.<br/>
<a id="pl.35.17"></a><var>35.17</var>    Subd. 6. <b>Determination of eligibility.</b> (a) All determinations whether <br/>
<a id="pl.35.18"></a><var>35.18</var>indemnification of a person is required because the criteria in subdivision 2 have been <br/>
<a id="pl.35.19"></a><var>35.19</var>satisfied and whether a person is entitled to payment or reimbursement of expenses in <br/>
<a id="pl.35.20"></a><var>35.20</var>advance of the final disposition of a proceeding as provided in subdivision 3 must be made:<br/>
<a id="pl.35.21"></a><var>35.21</var>(1) in a board-managed limited liability company:<br/>
<a id="pl.35.22"></a><var>35.22</var>(i) by the board of governors by a majority of a quorum, provided that governors <br/>
<a id="pl.35.23"></a><var>35.23</var>who are, at the time, parties to the proceeding shall not be counted for determining either <br/>
<a id="pl.35.24"></a><var>35.24</var>a majority or the presence of a quorum;<br/>
<a id="pl.35.25"></a><var>35.25</var>(ii) if a quorum under item (i) cannot be obtained, by a majority of a committee of <br/>
<a id="pl.35.26"></a><var>35.26</var>the board of governors, consisting solely of two or more governors not at the time parties <br/>
<a id="pl.35.27"></a><var>35.27</var>to the proceeding, duly designated to act in the matter by a majority of the full board of <br/>
<a id="pl.35.28"></a><var>35.28</var>governors including governors who are parties; and<br/>
<a id="pl.35.29"></a><var>35.29</var>(iii) if a determination is not made under item (i) or (ii), by special legal counsel, <br/>
<a id="pl.35.30"></a><var>35.30</var>selected either by a majority of the board of governors or a committee by vote pursuant <br/>
<a id="pl.35.31"></a><var>35.31</var>to item (i) or (ii) or, if the requisite quorum of the full board of governors cannot be <br/>
<a id="pl.35.32"></a><var>35.32</var>obtained and the committee cannot be established, by a majority of the full board of <br/>
<a id="pl.35.33"></a><var>35.33</var>governors including governors who are parties;<br/>
<a id="pl.35.34"></a><var>35.34</var>(2) in all other cases, by the affirmative vote of the members, with each member <br/>
<a id="pl.35.35"></a><var>35.35</var>having voting power in proportion to the member's interest in then current profits of the <br/>
<a id="pl.35.36"></a><var>35.36</var>limited liability company, but the membership interests held by parties to the proceeding <br/>
<a id="pl.36.1"></a><var>36.1</var>must not be counted in determining the presence of a quorum and are not considered to be <br/>
<a id="pl.36.2"></a><var>36.2</var>present and entitled to vote on the determination; or<br/>
<a id="pl.36.3"></a><var>36.3</var>(3) if an adverse determination is made under clauses (1) or (2), or if no <br/>
<a id="pl.36.4"></a><var>36.4</var>determination is made under clauses (1) or (2) within 60 days after (i) the later to occur <br/>
<a id="pl.36.5"></a><var>36.5</var>of the termination of a proceeding or a written request for indemnification to the limited <br/>
<a id="pl.36.6"></a><var>36.6</var>liability company or (ii) a written request for an advance of expenses, as the case may be, <br/>
<a id="pl.36.7"></a><var>36.7</var>by a court in this state, which may be the same court in which the proceeding involving <br/>
<a id="pl.36.8"></a><var>36.8</var>the person's liability took place, upon application of the person and any notice the <br/>
<a id="pl.36.9"></a><var>36.9</var>court requires. The person seeking indemnification or payment or reimbursement of <br/>
<a id="pl.36.10"></a><var>36.10</var>expenses pursuant to this clause has the burden of establishing that the person is entitled to <br/>
<a id="pl.36.11"></a><var>36.11</var>indemnification or payment or reimbursement of expenses.<br/>
<a id="pl.36.12"></a><var>36.12</var>(b) With respect to a person who is not, and was not at the time of the acts or <br/>
<a id="pl.36.13"></a><var>36.13</var>omissions complained of in the proceedings, a member, governor, manager, or person <br/>
<a id="pl.36.14"></a><var>36.14</var>possessing, directly or indirectly, the power to direct or cause the direction of the <br/>
<a id="pl.36.15"></a><var>36.15</var>management or policies of the limited liability company, the determination whether <br/>
<a id="pl.36.16"></a><var>36.16</var>indemnification of this person is required because the criteria set forth in subdivision 2 <br/>
<a id="pl.36.17"></a><var>36.17</var>have been satisfied and whether this person is entitled to payment or reimbursement of <br/>
<a id="pl.36.18"></a><var>36.18</var>expenses in advance of the final disposition of a proceeding as provided in subdivision 3 <br/>
<a id="pl.36.19"></a><var>36.19</var>may be made (i) in a board-managed limited liability company, by an annually appointed <br/>
<a id="pl.36.20"></a><var>36.20</var>committee of the board of governors, having at least one member who is a governor, which <br/>
<a id="pl.36.21"></a><var>36.21</var>committee shall report at least annually to the board of governors concerning its actions <br/>
<a id="pl.36.22"></a><var>36.22</var>and (ii) in all other cases by a committee appointed annually by the members, having at <br/>
<a id="pl.36.23"></a><var>36.23</var>least one committee member who is a member of the limited liability company, which <br/>
<a id="pl.36.24"></a><var>36.24</var>committee shall report at least annually to the board of governors concerning its actions.<br/>
<a id="pl.36.25"></a><var>36.25</var>    Subd. 7. <b>Insurance.</b> A limited liability company may purchase and maintain <br/>
<a id="pl.36.26"></a><var>36.26</var>insurance on behalf of a member, manager, or governor of the company against liability <br/>
<a id="pl.36.27"></a><var>36.27</var>asserted against or incurred by the member, manager, or governor in that capacity or <br/>
<a id="pl.36.28"></a><var>36.28</var>arising from that status even if, under section 322C.0110, subdivision 7, the operating <br/>
<a id="pl.36.29"></a><var>36.29</var>agreement could not eliminate or limit the person's liability to the company for the conduct <br/>
<a id="pl.36.30"></a><var>36.30</var>giving rise to the liability and whether or not the limited liability company would have <br/>
<a id="pl.36.31"></a><var>36.31</var>been required to indemnify the person against the liability under this section.<br/>
<a id="pl.36.32"></a><var>36.32</var>    Subd. 8. <b>Disclosure.</b> A limited liability company that indemnifies or advances <br/>
<a id="pl.36.33"></a><var>36.33</var>expenses to a person according to this section in connection with a proceeding by or on <br/>
<a id="pl.36.34"></a><var>36.34</var>behalf of the limited liability company shall report to the members in writing the amount <br/>
<a id="pl.36.35"></a><var>36.35</var>of the indemnification or advance and to whom and on whose behalf it was paid not <br/>
<a id="pl.36.36"></a><var>36.36</var>later than the next meeting of members.<br/>
<a id="pl.37.1"></a><var>37.1</var>    Subd. 9. <b>Indemnification of other persons.</b> Nothing in this section must be <br/>
<a id="pl.37.2"></a><var>37.2</var>construed to limit the power of the limited liability company to indemnify persons other <br/>
<a id="pl.37.3"></a><var>37.3</var>than a governor, manager, member, employee, or member of a committee of the board <br/>
<a id="pl.37.4"></a><var>37.4</var>of the limited liability company, by contract or otherwise.<br/>
<br/>
<a id="bill.1.38.0"></a><a id="pl.37.5"></a><var>37.5</var>    Sec. 38. <b>[322C.0409] STANDARDS OF CONDUCT FOR MEMBERS, </b><br/>
<a id="pl.37.6"></a><var>37.6</var><b>MANAGERS, AND GOVERNORS.</b><br/>
<a id="pl.37.7"></a><var>37.7</var>    Subdivision 1. <b>Scope of duties.</b> A member of a member-managed limited liability <br/>
<a id="pl.37.8"></a><var>37.8</var>company owes to the company and, subject to section 322C.0901, subdivision 2, the other <br/>
<a id="pl.37.9"></a><var>37.9</var>members the fiduciary duties of loyalty and care stated in subdivisions 2 and 3.<br/>
<a id="pl.37.10"></a><var>37.10</var>    Subd. 2. <b>Duty of loyalty.</b> The duty of loyalty of a member in a member-managed <br/>
<a id="pl.37.11"></a><var>37.11</var>limited liability company includes the duties:<br/>
<a id="pl.37.12"></a><var>37.12</var>(1) to account to the company and to hold as trustee for it any property, profit, or <br/>
<a id="pl.37.13"></a><var>37.13</var>benefit derived by the member:<br/>
<a id="pl.37.14"></a><var>37.14</var>(i) in the conduct or winding up of the company's activities;<br/>
<a id="pl.37.15"></a><var>37.15</var>(ii) from a use by the member of the company's property; or<br/>
<a id="pl.37.16"></a><var>37.16</var>(iii) from the appropriation of a limited liability company opportunity;<br/>
<a id="pl.37.17"></a><var>37.17</var>(2) to refrain from dealing with the company in the conduct or winding up of <br/>
<a id="pl.37.18"></a><var>37.18</var>the company's activities as or on behalf of a person having an interest adverse to the <br/>
<a id="pl.37.19"></a><var>37.19</var>company; and<br/>
<a id="pl.37.20"></a><var>37.20</var>(3) to refrain from competing with the company in the conduct of the company's <br/>
<a id="pl.37.21"></a><var>37.21</var>activities before the dissolution of the company.<br/>
<a id="pl.37.22"></a><var>37.22</var>    Subd. 3. <b>Duty of care.</b> Subject to the business judgment rule, the duty of care of a <br/>
<a id="pl.37.23"></a><var>37.23</var>member of a member-managed limited liability company in the conduct and winding up <br/>
<a id="pl.37.24"></a><var>37.24</var>of the company's activities is to act with the care that a person in a like position would <br/>
<a id="pl.37.25"></a><var>37.25</var>reasonably exercise under similar circumstances and in a manner the member reasonably <br/>
<a id="pl.37.26"></a><var>37.26</var>believes to be in the best interests of the company. In discharging this duty, a member <br/>
<a id="pl.37.27"></a><var>37.27</var>may rely in good faith on opinions, reports, statements, or other information provided by <br/>
<a id="pl.37.28"></a><var>37.28</var>another person that the member reasonably believes is a competent and reliable source <br/>
<a id="pl.37.29"></a><var>37.29</var>for the information.<br/>
<a id="pl.37.30"></a><var>37.30</var>    Subd. 4. <b>Contractual obligation of good faith and fair dealing.</b> A member in <br/>
<a id="pl.37.31"></a><var>37.31</var>a limited liability company shall discharge the member's duties and exercise any rights <br/>
<a id="pl.37.32"></a><var>37.32</var>under this chapter or under the operating agreement consistently with the contractual <br/>
<a id="pl.37.33"></a><var>37.33</var>obligation of good faith and fair dealing, including acting in a manner, in light of the <br/>
<a id="pl.37.34"></a><var>37.34</var>operating agreement, that is honest, fair, and reasonable.<br/>
<a id="pl.38.1"></a><var>38.1</var>    Subd. 5. <b>Fairness defense.</b> It is a defense to a claim under subdivision 2, clause <br/>
<a id="pl.38.2"></a><var>38.2</var>(2), and any comparable claim in equity or at common law that the transaction was fair <br/>
<a id="pl.38.3"></a><var>38.3</var>to the limited liability company.<br/>
<a id="pl.38.4"></a><var>38.4</var>    Subd. 6. <b>Authorization and ratification.</b> All of the members of a member-managed <br/>
<a id="pl.38.5"></a><var>38.5</var>limited liability company or a manager-managed limited liability company may authorize <br/>
<a id="pl.38.6"></a><var>38.6</var>or ratify, after full disclosure of all material facts, a specific act or transaction that <br/>
<a id="pl.38.7"></a><var>38.7</var>otherwise would violate the duty of loyalty.<br/>
<a id="pl.38.8"></a><var>38.8</var>    Subd. 7. <b>Manager-managed company rules.</b> In a manager-managed limited <br/>
<a id="pl.38.9"></a><var>38.9</var>liability company, the following rules apply:<br/>
<a id="pl.38.10"></a><var>38.10</var>(1) Subdivisions 1, 2, 3, and 5 apply to the manager or managers and not the members.<br/>
<a id="pl.38.11"></a><var>38.11</var>(2) The duty stated under subdivision 2, clause (3), continues until winding up <br/>
<a id="pl.38.12"></a><var>38.12</var>is completed.<br/>
<a id="pl.38.13"></a><var>38.13</var>(3) Subdivision 4 applies to the members and managers.<br/>
<a id="pl.38.14"></a><var>38.14</var>(4) Subdivision 6 applies only to the members.<br/>
<a id="pl.38.15"></a><var>38.15</var>(5) A member does not have any fiduciary duty to the company or to any other <br/>
<a id="pl.38.16"></a><var>38.16</var>member solely by reason of being a member.<br/>
<a id="pl.38.17"></a><var>38.17</var>    Subd. 8. <b>Board-managed company rules.</b> In a board-managed limited liability <br/>
<a id="pl.38.18"></a><var>38.18</var>company, the following rules apply:<br/>
<a id="pl.38.19"></a><var>38.19</var>(1) Subdivisions 1, 2, 3, and 5 apply to the governors and not the members.<br/>
<a id="pl.38.20"></a><var>38.20</var>(2) The duty stated under subdivision 2, clause (3), continues until winding up <br/>
<a id="pl.38.21"></a><var>38.21</var>is completed.<br/>
<a id="pl.38.22"></a><var>38.22</var>(3) Subdivision 4 applies to the members and governors.<br/>
<a id="pl.38.23"></a><var>38.23</var>(4) Subdivision 6 applies only to the members.<br/>
<a id="pl.38.24"></a><var>38.24</var>(5) A member does not have any fiduciary duty to the company or to any other <br/>
<a id="pl.38.25"></a><var>38.25</var>member solely by reason of being a member.<br/>
<br/>
<a id="bill.1.39.0"></a><a id="pl.38.26"></a><var>38.26</var>    Sec. 39. <b>[322C.0410] RIGHT OF MEMBERS, MANAGERS, GOVERNORS, </b><br/>
<a id="pl.38.27"></a><var>38.27</var><b>AND DISSOCIATED MEMBERS TO INFORMATION.</b><br/>
<a id="pl.38.28"></a><var>38.28</var>    Subdivision 1. <b>Member-managed company rules.</b> In a member-managed limited <br/>
<a id="pl.38.29"></a><var>38.29</var>liability company, the following rules apply:<br/>
<a id="pl.38.30"></a><var>38.30</var>(1) On reasonable notice, a member may inspect and copy during regular business <br/>
<a id="pl.38.31"></a><var>38.31</var>hours, at a reasonable location specified by the company, any record maintained by the <br/>
<a id="pl.38.32"></a><var>38.32</var>company regarding the company's activities, financial condition, and other circumstances, <br/>
<a id="pl.38.33"></a><var>38.33</var>to the extent the information is material to the member's rights and duties under the <br/>
<a id="pl.38.34"></a><var>38.34</var>operating agreement or this chapter.<br/>
<a id="pl.38.35"></a><var>38.35</var>(2) The company shall furnish to each member:<br/>
<a id="pl.39.1"></a><var>39.1</var>(i) without demand, any information concerning the company's activities, financial <br/>
<a id="pl.39.2"></a><var>39.2</var>condition, and other circumstances which the company knows and is material to the <br/>
<a id="pl.39.3"></a><var>39.3</var>proper exercise of the member's rights and duties under the operating agreement or this <br/>
<a id="pl.39.4"></a><var>39.4</var>chapter, except to the extent the company can establish that it reasonably believes the <br/>
<a id="pl.39.5"></a><var>39.5</var>member already knows the information; and<br/>
<a id="pl.39.6"></a><var>39.6</var>(ii) on demand, any other information concerning the company's activities, financial <br/>
<a id="pl.39.7"></a><var>39.7</var>condition, and other circumstances, except to the extent the demand or information <br/>
<a id="pl.39.8"></a><var>39.8</var>demanded is unreasonable or otherwise improper under the circumstances.<br/>
<a id="pl.39.9"></a><var>39.9</var>(3) The duty to furnish information under clause (2) also applies to each member to <br/>
<a id="pl.39.10"></a><var>39.10</var>the extent the member knows any of the information described in clause (2).<br/>
<a id="pl.39.11"></a><var>39.11</var>    Subd. 2. <b>Manager-managed and board-managed company rules.</b> In a <br/>
<a id="pl.39.12"></a><var>39.12</var>manager-managed limited liability company, the following rules apply:<br/>
<a id="pl.39.13"></a><var>39.13</var>(1) The informational rights stated in subdivision 1 and the duty stated in subdivision <br/>
<a id="pl.39.14"></a><var>39.14</var>1, clause (3), apply to the managers or governors and not the members.<br/>
<a id="pl.39.15"></a><var>39.15</var>(2) During regular business hours and at a reasonable location specified by the <br/>
<a id="pl.39.16"></a><var>39.16</var>company, a member may obtain from the company and inspect and copy full information <br/>
<a id="pl.39.17"></a><var>39.17</var>regarding the activities, financial condition, and other circumstances of the company as <br/>
<a id="pl.39.18"></a><var>39.18</var>is just and reasonable if:<br/>
<a id="pl.39.19"></a><var>39.19</var>(i) the member seeks the information for a purpose material to the member's interest <br/>
<a id="pl.39.20"></a><var>39.20</var>as a member;<br/>
<a id="pl.39.21"></a><var>39.21</var>(ii) the member makes a demand in a record received by the company, describing <br/>
<a id="pl.39.22"></a><var>39.22</var>with reasonable particularity the information sought and the purpose for seeking the <br/>
<a id="pl.39.23"></a><var>39.23</var>information; and<br/>
<a id="pl.39.24"></a><var>39.24</var>(iii) the information sought is directly connected to the member's purpose.<br/>
<a id="pl.39.25"></a><var>39.25</var>(3) Within ten days after receiving a demand pursuant to clause (2), item (ii), the <br/>
<a id="pl.39.26"></a><var>39.26</var>company shall in a record inform the member that made the demand:<br/>
<a id="pl.39.27"></a><var>39.27</var>(i) of the information that the company will provide in response to the demand and <br/>
<a id="pl.39.28"></a><var>39.28</var>when and where the company will provide the information; and<br/>
<a id="pl.39.29"></a><var>39.29</var>(ii) if the company declines to provide any demanded information, the company's <br/>
<a id="pl.39.30"></a><var>39.30</var>reasons for declining.<br/>
<a id="pl.39.31"></a><var>39.31</var>(4) Whenever this chapter or an operating agreement provides for a member to give <br/>
<a id="pl.39.32"></a><var>39.32</var>or withhold consent to a matter, before the consent is given or withheld, the company <br/>
<a id="pl.39.33"></a><var>39.33</var>shall, without demand, provide the member with all information that is known to the <br/>
<a id="pl.39.34"></a><var>39.34</var>company and is material to the member's decision.<br/>
<a id="pl.39.35"></a><var>39.35</var>    Subd. 3. <b>Dissociated member access.</b> On ten days' demand made in a record <br/>
<a id="pl.39.36"></a><var>39.36</var>received by a limited liability company, a dissociated member may have access to <br/>
<a id="pl.40.1"></a><var>40.1</var>information to which the person was entitled while a member if the information pertains to <br/>
<a id="pl.40.2"></a><var>40.2</var>the period during which the person was a member, the person seeks the information in <br/>
<a id="pl.40.3"></a><var>40.3</var>good faith, and the person satisfies the requirements imposed on a member by subdivision <br/>
<a id="pl.40.4"></a><var>40.4</var>2, clause (2). The company shall respond to a demand made pursuant to this subdivision <br/>
<a id="pl.40.5"></a><var>40.5</var>in the manner provided in subdivision 2, clause (3).<br/>
<a id="pl.40.6"></a><var>40.6</var>    Subd. 4. <b>Access costs.</b> A limited liability company may charge a person that makes <br/>
<a id="pl.40.7"></a><var>40.7</var>a demand under this section the reasonable costs of copying, limited to the costs of labor <br/>
<a id="pl.40.8"></a><var>40.8</var>and material.<br/>
<a id="pl.40.9"></a><var>40.9</var>    Subd. 5. <b>Agent use.</b> A member or dissociated member may exercise rights under <br/>
<a id="pl.40.10"></a><var>40.10</var>this section through an agent or, in the case of an individual under legal disability, a <br/>
<a id="pl.40.11"></a><var>40.11</var>legal representative. Any restriction or condition imposed by the operating agreement or <br/>
<a id="pl.40.12"></a><var>40.12</var>under subdivision 7 applies both to the agent or legal representative and the member <br/>
<a id="pl.40.13"></a><var>40.13</var>or dissociated member.<br/>
<a id="pl.40.14"></a><var>40.14</var>    Subd. 6. <b>Transferee excluded.</b> The rights under this section do not extend to a <br/>
<a id="pl.40.15"></a><var>40.15</var>person as transferee.<br/>
<a id="pl.40.16"></a><var>40.16</var>    Subd. 7. <b>Reasonable restrictions to access.</b> In addition to any restriction or <br/>
<a id="pl.40.17"></a><var>40.17</var>condition stated in its operating agreement, a limited liability company, as a matter within <br/>
<a id="pl.40.18"></a><var>40.18</var>the ordinary course of its activities, may impose reasonable restrictions and conditions on <br/>
<a id="pl.40.19"></a><var>40.19</var>access to and use of information to be furnished under this section, including designating <br/>
<a id="pl.40.20"></a><var>40.20</var>information confidential and imposing nondisclosure and safeguarding obligations on <br/>
<a id="pl.40.21"></a><var>40.21</var>the recipient. In a dispute concerning the reasonableness of a restriction under this <br/>
<a id="pl.40.22"></a><var>40.22</var>subdivision, the company has the burden of proving reasonableness.<br/>

<a id="pl.40.24"></a><var>40.24</var><b>AND CREDITORS</b><br/>

<a id="bill.1.40.0"></a><a id="pl.40.25"></a><var>40.25</var>    Sec. 40. <b>[322C.0501] NATURE OF TRANSFERABLE INTEREST.</b><br/>
<a id="pl.40.26"></a><var>40.26</var>A transferable interest is personal property.<br/>
<br/>
<a id="bill.1.41.0"></a><a id="pl.40.27"></a><var>40.27</var>    Sec. 41. <b>[322C.0502] TRANSFER OF TRANSFERABLE INTEREST.</b><br/>
<a id="pl.40.28"></a><var>40.28</var>    Subdivision 1. <b>Transfers.</b> A transfer, in whole or in part, of a transferable interest:<br/>
<a id="pl.40.29"></a><var>40.29</var>(1) is permissible;<br/>
<a id="pl.40.30"></a><var>40.30</var>(2) does not by itself cause a member's dissociation or a dissolution and winding up <br/>
<a id="pl.40.31"></a><var>40.31</var>of the limited liability company's activities; and<br/>
<a id="pl.40.32"></a><var>40.32</var>(3) subject to section 322C.0504, does not entitle the transferee to:<br/>
<a id="pl.40.33"></a><var>40.33</var>(i) participate in the management or conduct of the company's activities; or<br/>
<a id="pl.41.1"></a><var>41.1</var>(ii) except as otherwise provided in subdivision 3, have access to records or other <br/>
<a id="pl.41.2"></a><var>41.2</var>information concerning the company's activities.<br/>
<a id="pl.41.3"></a><var>41.3</var>    Subd. 2. <b>Transferee right to distributions.</b> A transferee has the right to receive, <br/>
<a id="pl.41.4"></a><var>41.4</var>in accordance with the transfer, distributions to which the transferor would otherwise <br/>
<a id="pl.41.5"></a><var>41.5</var>be entitled.<br/>
<a id="pl.41.6"></a><var>41.6</var>    Subd. 3. <b>Transferee right to an account.</b> In a dissolution and winding up of <br/>
<a id="pl.41.7"></a><var>41.7</var>a limited liability company, a transferee is entitled to an account of the company's <br/>
<a id="pl.41.8"></a><var>41.8</var>transactions only from the date of dissolution.<br/>
<a id="pl.41.9"></a><var>41.9</var>    Subd. 4. <b>Evidence of interest.</b> A transferable interest may be evidenced by a <br/>
<a id="pl.41.10"></a><var>41.10</var>certificate of the interest issued by the limited liability company in a record, and, subject <br/>
<a id="pl.41.11"></a><var>41.11</var>to this section, the interest represented by the certificate may be transferred by a transfer of <br/>
<a id="pl.41.12"></a><var>41.12</var>the certificate.<br/>
<a id="pl.41.13"></a><var>41.13</var>    Subd. 5. <b>Company notice required.</b> A limited liability company need not give <br/>
<a id="pl.41.14"></a><var>41.14</var>effect to a transferee's rights under this section until the company has notice of the transfer.<br/>
<a id="pl.41.15"></a><var>41.15</var>    Subd. 6. <b>Violative transfers ineffective.</b> A transfer of a transferable interest in <br/>
<a id="pl.41.16"></a><var>41.16</var>violation of a restriction on transfer contained in the operating agreement is ineffective as <br/>
<a id="pl.41.17"></a><var>41.17</var>to a person having notice of the restriction at the time of transfer.<br/>
<a id="pl.41.18"></a><var>41.18</var>    Subd. 7. <b>Rights retained.</b> Except as otherwise provided in section 322C.0602, <br/>
<a id="pl.41.19"></a><var>41.19</var>clause (4), item (ii), when a member transfers a transferable interest, the transferor retains <br/>
<a id="pl.41.20"></a><var>41.20</var>the rights of a member other than the interest in distributions transferred and retains all <br/>
<a id="pl.41.21"></a><var>41.21</var>duties and obligations of a member.<br/>
<a id="pl.41.22"></a><var>41.22</var>    Subd. 8. <b>Transferee liability.</b> When a member transfers a transferable interest to a <br/>
<a id="pl.41.23"></a><var>41.23</var>person that becomes a member with respect to the transferred interest, the transferee is <br/>
<a id="pl.41.24"></a><var>41.24</var>liable for the member's obligations under sections 322C.0403 and 322C.0406, subdivision <br/>
<a id="pl.41.25"></a><var>41.25</var>3, known to the transferee when the transferee becomes a member.<br/>
<br/>
<a id="bill.1.42.0"></a><a id="pl.41.26"></a><var>41.26</var>    Sec. 42. <b>[322C.0503] CHARGING ORDER.</b><br/>
<a id="pl.41.27"></a><var>41.27</var>    Subdivision 1. <b>Charging order against transferable interest.</b> On application <br/>
<a id="pl.41.28"></a><var>41.28</var>by a judgment creditor of a member or transferee, a court may enter a charging order <br/>
<a id="pl.41.29"></a><var>41.29</var>against the transferable interest of the judgment debtor for the unsatisfied amount of the <br/>
<a id="pl.41.30"></a><var>41.30</var>judgment. A charging order constitutes a lien on a judgment debtor's transferable interest <br/>
<a id="pl.41.31"></a><var>41.31</var>and requires the limited liability company to pay over to the person to which the charging <br/>
<a id="pl.41.32"></a><var>41.32</var>order was issued any distribution that would otherwise be paid to the judgment debtor.<br/>
<a id="pl.41.33"></a><var>41.33</var>    Subd. 2. <b>Charging order effectuation.</b> To the extent necessary to effectuate the <br/>
<a id="pl.41.34"></a><var>41.34</var>collection of distributions pursuant to a charging order in effect under subdivision 1, <br/>
<a id="pl.41.35"></a><var>41.35</var>the court may:<br/>
<a id="pl.42.1"></a><var>42.1</var>(1) appoint a receiver of the distributions subject to the charging order, with the <br/>
<a id="pl.42.2"></a><var>42.2</var>power to make all inquiries the judgment debtor might have made; and<br/>
<a id="pl.42.3"></a><var>42.3</var>(2) make all other orders necessary to give effect to the charging order.<br/>
<a id="pl.42.4"></a><var>42.4</var>    Subd. 3. <b>Foreclosure and sale.</b> Upon a showing that distributions under a charging <br/>
<a id="pl.42.5"></a><var>42.5</var>order will not pay the judgment debt within a reasonable time, the court may foreclose <br/>
<a id="pl.42.6"></a><var>42.6</var>the lien and order the sale of the transferable interest. The purchaser at the foreclosure <br/>
<a id="pl.42.7"></a><var>42.7</var>sale obtains only the transferable interest, does not thereby become a member, and is <br/>
<a id="pl.42.8"></a><var>42.8</var>subject to section 322C.0502.<br/>
<a id="pl.42.9"></a><var>42.9</var>    Subd. 4. <b>Extinguishing charging order.</b> At any time before foreclosure under <br/>
<a id="pl.42.10"></a><var>42.10</var>subdivision 3, the member or transferee whose transferable interest is subject to a charging <br/>
<a id="pl.42.11"></a><var>42.11</var>order under subdivision 1 may extinguish the charging order by satisfying the judgment <br/>
<a id="pl.42.12"></a><var>42.12</var>and filing a certified copy of the satisfaction with the court that issued the charging order.<br/>
<a id="pl.42.13"></a><var>42.13</var>    Subd. 5. <b>Succession to rights of judgment creditor.</b> At any time before <br/>
<a id="pl.42.14"></a><var>42.14</var>foreclosure under subdivision 3, a limited liability company or one or more members <br/>
<a id="pl.42.15"></a><var>42.15</var>whose transferable interests are not subject to the charging order may pay to the judgment <br/>
<a id="pl.42.16"></a><var>42.16</var>creditor the full amount due under the judgment and thereby succeed to the rights of the <br/>
<a id="pl.42.17"></a><var>42.17</var>judgment creditor, including the charging order.<br/>
<a id="pl.42.18"></a><var>42.18</var>    Subd. 6. <b>Exemption laws applicable.</b> This chapter does not deprive any member or <br/>
<a id="pl.42.19"></a><var>42.19</var>transferee of the benefit of any exemption laws applicable to the member's or transferee's <br/>
<a id="pl.42.20"></a><var>42.20</var>transferable interest.<br/>
<a id="pl.42.21"></a><var>42.21</var>    Subd. 7. <b>Exclusive remedy.</b> This section provides the exclusive remedy by which a <br/>
<a id="pl.42.22"></a><var>42.22</var>person seeking to enforce a judgment against a member or transferee may, in the capacity <br/>
<a id="pl.42.23"></a><var>42.23</var>of judgment creditor, satisfy the judgment from the judgment debtor's transferable interest.<br/>
<br/>
<a id="bill.1.43.0"></a><a id="pl.42.24"></a><var>42.24</var>    Sec. 43. <b>[322C.0504] POWER OF PERSONAL REPRESENTATIVE OF </b><br/>
<a id="pl.42.25"></a><var>42.25</var><b>DECEASED MEMBER.</b><br/>
<a id="pl.42.26"></a><var>42.26</var>If a member dies, the deceased member's personal representative or other legal <br/>
<a id="pl.42.27"></a><var>42.27</var>representative may exercise the rights of a transferee provided in section 322C.0502, <br/>
<a id="pl.42.28"></a><var>42.28</var>subdivision 3, and, for the purposes of settling the estate, the rights of a current member <br/>
<a id="pl.42.29"></a><var>42.29</var>under section 322C.0410.<br/>

<a id="bill.1.44.0"></a><a id="pl.42.31"></a><var>42.31</var>    Sec. 44. <b>[322C.0601] MEMBER'S POWER TO DISSOCIATE; WRONGFUL </b><br/>
<a id="pl.42.32"></a><var>42.32</var><b>DISSOCIATION.</b><br/>
<a id="pl.43.1"></a><var>43.1</var>    Subdivision 1. <b>Power to dissociate.</b> A person has the power to dissociate as a <br/>
<a id="pl.43.2"></a><var>43.2</var>member at any time, rightfully or wrongfully, by withdrawing as a member by express <br/>
<a id="pl.43.3"></a><var>43.3</var>will under section 322C.0602, clause (1).<br/>
<a id="pl.43.4"></a><var>43.4</var>    Subd. 2. <b>Wrongful dissociation. </b> A person's dissociation from a limited liability <br/>
<a id="pl.43.5"></a><var>43.5</var>company is wrongful only if the dissociation:<br/>
<a id="pl.43.6"></a><var>43.6</var>(1) is in breach of an express provision of the operating agreement; or<br/>
<a id="pl.43.7"></a><var>43.7</var>(2) occurs before the termination of the company and:<br/>
<a id="pl.43.8"></a><var>43.8</var>(i) the person withdraws as a member by express will;<br/>
<a id="pl.43.9"></a><var>43.9</var>(ii) the person is expelled as a member by judicial order under section 322C.0602, <br/>
<a id="pl.43.10"></a><var>43.10</var>clause (5);<br/>
<a id="pl.43.11"></a><var>43.11</var>(iii) the person is dissociated under section 322C.0602, clause (7), item (i), by <br/>
<a id="pl.43.12"></a><var>43.12</var>becoming a debtor in bankruptcy; or<br/>
<a id="pl.43.13"></a><var>43.13</var>(iv) in the case of a person that is not a trust other than a business trust, an estate, <br/>
<a id="pl.43.14"></a><var>43.14</var>or an individual, the person is expelled or otherwise dissociated as a member because it <br/>
<a id="pl.43.15"></a><var>43.15</var>willfully dissolved or terminated.<br/>
<a id="pl.43.16"></a><var>43.16</var>    Subd. 3. <b>Liability for wrongful dissociation.</b> A person that wrongfully dissociates <br/>
<a id="pl.43.17"></a><var>43.17</var>as a member is liable to the limited liability company and, subject to section 322C.0901, <br/>
<a id="pl.43.18"></a><var>43.18</var>to the other members for damages caused by the dissociation. The liability is in addition <br/>
<a id="pl.43.19"></a><var>43.19</var>to any other debt, obligation, or other liability of the member to the company or the other <br/>
<a id="pl.43.20"></a><var>43.20</var>members.<br/>
<br/>
<a id="bill.1.45.0"></a><a id="pl.43.21"></a><var>43.21</var>    Sec. 45. <b>[322C.0602] EVENTS CAUSING DISSOCIATION.</b><br/>
<a id="pl.43.22"></a><var>43.22</var>A person is dissociated as a member from a limited liability company when:<br/>
<a id="pl.43.23"></a><var>43.23</var>(1) the company has notice of the person's express will to withdraw as a member, <br/>
<a id="pl.43.24"></a><var>43.24</var>but, if the person specified a withdrawal date later than the date the company had notice, <br/>
<a id="pl.43.25"></a><var>43.25</var>on that later date;<br/>
<a id="pl.43.26"></a><var>43.26</var>(2) an event stated in the operating agreement as causing the person's dissociation <br/>
<a id="pl.43.27"></a><var>43.27</var>occurs;<br/>
<a id="pl.43.28"></a><var>43.28</var>(3) the person is expelled as a member pursuant to the operating agreement;<br/>
<a id="pl.43.29"></a><var>43.29</var>(4) the person is expelled as a member by the unanimous consent of the other <br/>
<a id="pl.43.30"></a><var>43.30</var>members if:<br/>
<a id="pl.43.31"></a><var>43.31</var>(i) it is unlawful to carry on the company's activities with the person as a member;<br/>
<a id="pl.43.32"></a><var>43.32</var>(ii) there has been a transfer of all of the person's transferable interest in the <br/>
<a id="pl.43.33"></a><var>43.33</var>company, other than:<br/>
<a id="pl.43.34"></a><var>43.34</var>(A) a transfer for security purposes; or<br/>
<a id="pl.43.35"></a><var>43.35</var>(B) a charging order in effect under section 322C.0503 which has not been foreclosed;<br/>
<a id="pl.44.1"></a><var>44.1</var>(iii) the person is a corporation and, within 90 days after the company notifies the <br/>
<a id="pl.44.2"></a><var>44.2</var>person that it will be expelled as a member because the person has filed a certificate of <br/>
<a id="pl.44.3"></a><var>44.3</var>dissolution or the equivalent, its charter has been revoked, or its right to conduct business <br/>
<a id="pl.44.4"></a><var>44.4</var>has been suspended by the jurisdiction of its incorporation, the certificate of dissolution <br/>
<a id="pl.44.5"></a><var>44.5</var>has not been revoked or its charter or right to conduct business has not been reinstated; or<br/>
<a id="pl.44.6"></a><var>44.6</var>(iv) the person is a limited liability company or partnership that has been dissolved <br/>
<a id="pl.44.7"></a><var>44.7</var>and whose business is being wound up;<br/>
<a id="pl.44.8"></a><var>44.8</var>(5) on application by the company, the person is expelled as a member by judicial <br/>
<a id="pl.44.9"></a><var>44.9</var>order because the person:<br/>
<a id="pl.44.10"></a><var>44.10</var>(i) has engaged, or is engaging, in wrongful conduct that has adversely and <br/>
<a id="pl.44.11"></a><var>44.11</var>materially affected, or will adversely and materially affect, the company's activities;<br/>
<a id="pl.44.12"></a><var>44.12</var>(ii) has willfully or persistently committed, or is willfully and persistently <br/>
<a id="pl.44.13"></a><var>44.13</var>committing, a material breach of the operating agreement or the person's duties or <br/>
<a id="pl.44.14"></a><var>44.14</var>obligations under section 322C.0409; or<br/>
<a id="pl.44.15"></a><var>44.15</var>(iii) has engaged, or is engaging, in conduct relating to the company's activities which <br/>
<a id="pl.44.16"></a><var>44.16</var>makes it not reasonably practicable to carry on the activities with the person as a member;<br/>
<a id="pl.44.17"></a><var>44.17</var>(6) in the case of a person who is an individual:<br/>
<a id="pl.44.18"></a><var>44.18</var>(i) the person dies; or<br/>
<a id="pl.44.19"></a><var>44.19</var>(ii) in a member-managed limited liability company:<br/>
<a id="pl.44.20"></a><var>44.20</var>(A) a guardian or general conservator for the person is appointed; or<br/>
<a id="pl.44.21"></a><var>44.21</var>(B) there is a judicial order that the person has otherwise become incapable of <br/>
<a id="pl.44.22"></a><var>44.22</var>performing the person's duties as a member under this chapter or the operating agreement;<br/>
<a id="pl.44.23"></a><var>44.23</var>(7) in a member-managed limited liability company, the person:<br/>
<a id="pl.44.24"></a><var>44.24</var>(i) becomes a debtor in bankruptcy;<br/>
<a id="pl.44.25"></a><var>44.25</var>(ii) executes an assignment for the benefit of creditors; or<br/>
<a id="pl.44.26"></a><var>44.26</var>(iii) seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or <br/>
<a id="pl.44.27"></a><var>44.27</var>liquidator of the person or of all or substantially all of the person's property;<br/>
<a id="pl.44.28"></a><var>44.28</var>(8) in the case of a person that is a trust or is acting as a member by virtue of being a <br/>
<a id="pl.44.29"></a><var>44.29</var>trustee of a trust, the trust's entire transferable interest in the company is distributed;<br/>
<a id="pl.44.30"></a><var>44.30</var>(9) in the case of a person that is an estate or is acting as a member by virtue of <br/>
<a id="pl.44.31"></a><var>44.31</var>being a personal representative of an estate, the estate's entire transferable interest in the <br/>
<a id="pl.44.32"></a><var>44.32</var>company is distributed;<br/>
<a id="pl.44.33"></a><var>44.33</var>(10) in the case of a member that is not an individual, partnership, limited liability <br/>
<a id="pl.44.34"></a><var>44.34</var>company, corporation, trust, or estate, the termination of the member;<br/>
<a id="pl.44.35"></a><var>44.35</var>(11) the company participates in a merger under sections 322C.1001 to 322C.1015, if:<br/>
<a id="pl.44.36"></a><var>44.36</var>(i) the company is not the surviving entity; or<br/>
<a id="pl.45.1"></a><var>45.1</var>(ii) otherwise as a result of the merger, the person ceases to be a member;<br/>
<a id="pl.45.2"></a><var>45.2</var>(12) the company participates in a conversion under sections 322C.1001 to <br/>
<a id="pl.45.3"></a><var>45.3</var>322C.1015;<br/>
<a id="pl.45.4"></a><var>45.4</var>(13) the company participates in a domestication under sections 322C.1001 to <br/>
<a id="pl.45.5"></a><var>45.5</var>322C.1015, if, as a result of the domestication, the person ceases to be a member; or<br/>
<a id="pl.45.6"></a><var>45.6</var>(14) the company terminates.<br/>
<br/>
<a id="bill.1.46.0"></a><a id="pl.45.7"></a><var>45.7</var>    Sec. 46. <b>[322C.0603] EFFECT OF PERSON'S DISSOCIATION AS MEMBER.</b><br/>
<a id="pl.45.8"></a><var>45.8</var>    Subdivision 1. <b>Effect of dissociation.</b> When a person is dissociated as a member of <br/>
<a id="pl.45.9"></a><var>45.9</var>a limited liability company:<br/>
<a id="pl.45.10"></a><var>45.10</var>(1) the person's right to participate as a member in the management and conduct of <br/>
<a id="pl.45.11"></a><var>45.11</var>the company's activities terminates;<br/>
<a id="pl.45.12"></a><var>45.12</var>(2) if the company is member-managed, the person's fiduciary duties as a member <br/>
<a id="pl.45.13"></a><var>45.13</var>end with regard to matters arising and events occurring after the person's dissociation; and<br/>
<a id="pl.45.14"></a><var>45.14</var>(3) subject to sections 322C.0504 and 322C.1001 to 322C.1015, any transferable <br/>
<a id="pl.45.15"></a><var>45.15</var>interest owned by the person immediately before dissociation in the person's capacity as <br/>
<a id="pl.45.16"></a><var>45.16</var>a member is owned by the person solely as a transferee.<br/>
<a id="pl.45.17"></a><var>45.17</var>    Subd. 2. <b>No discharge.</b> A person's dissociation as a member of a limited liability <br/>
<a id="pl.45.18"></a><var>45.18</var>company does not of itself discharge the person from any debt, obligation, or other <br/>
<a id="pl.45.19"></a><var>45.19</var>liability to the company or the other members that the person incurred while a member.<br/>

<a id="bill.1.47.0"></a><a id="pl.45.21"></a><var>45.21</var>    Sec. 47. <b>[322C.0701] EVENTS CAUSING DISSOLUTION.</b><br/>
<a id="pl.45.22"></a><var>45.22</var>    Subdivision 1. <b>Dissolution events.</b> A limited liability company is dissolved, and its <br/>
<a id="pl.45.23"></a><var>45.23</var>activities must be wound up, upon the occurrence of any of the following:<br/>
<a id="pl.45.24"></a><var>45.24</var>(1) an event or circumstance that the operating agreement states causes dissolution;<br/>
<a id="pl.45.25"></a><var>45.25</var>(2) the consent of all the members;<br/>
<a id="pl.45.26"></a><var>45.26</var>(3) following the admission of the initial member or members, the passage of 90 <br/>
<a id="pl.45.27"></a><var>45.27</var>consecutive days during which the company has no members;<br/>
<a id="pl.45.28"></a><var>45.28</var>(4) on application by a member, the entry by appropriate court of an order dissolving <br/>
<a id="pl.45.29"></a><var>45.29</var>the company on the grounds that:<br/>
<a id="pl.45.30"></a><var>45.30</var>(i) the conduct of all or substantially all of the company's activities is unlawful; or<br/>
<a id="pl.45.31"></a><var>45.31</var>(ii) it is not reasonably practicable to carry on the company's activities in conformity <br/>
<a id="pl.45.32"></a><var>45.32</var>with the articles of organization and the operating agreement;<br/>
<a id="pl.46.1"></a><var>46.1</var>(5) on application by a member, the entry by appropriate court of an order dissolving <br/>
<a id="pl.46.2"></a><var>46.2</var>the company on the grounds that the managers, governors, or those members in control of <br/>
<a id="pl.46.3"></a><var>46.3</var>the company:<br/>
<a id="pl.46.4"></a><var>46.4</var>(i) have acted, are acting, or will act in a manner that is illegal or fraudulent; or<br/>
<a id="pl.46.5"></a><var>46.5</var>(ii) have acted or are acting in a manner that is oppressive and was, is, or will be <br/>
<a id="pl.46.6"></a><var>46.6</var>directly harmful to the applicant; or<br/>
<a id="pl.46.7"></a><var>46.7</var>(6) on application by the attorney general in an action commenced pursuant to <br/>
<a id="pl.46.8"></a><var>46.8</var>section 322C.0708, the entry by appropriate court of an order dissolving the company on <br/>
<a id="pl.46.9"></a><var>46.9</var>grounds specified in 322C.0708.<br/>
<a id="pl.46.10"></a><var>46.10</var>    Subd. 2. <b>Alternative remedies.</b> In a proceeding brought under subdivision 1, clause <br/>
<a id="pl.46.11"></a><var>46.11</var>(5), the court may order a remedy other than dissolution, which may include the sale for <br/>
<a id="pl.46.12"></a><var>46.12</var>fair value of all membership interests a member owns in a limited liability company to <br/>
<a id="pl.46.13"></a><var>46.13</var>the limited liability company or one or more of the other members. A remedy other than <br/>
<a id="pl.46.14"></a><var>46.14</var>dissolution may be ordered in any case where that remedy would be appropriate under all <br/>
<a id="pl.46.15"></a><var>46.15</var>the facts and circumstances of the case. <br/>
<a id="pl.46.16"></a><var>46.16</var>    Subd. 3. <b>Venue.</b> A proceeding brought under subdivision 1, clause (5), must <br/>
<a id="pl.46.17"></a><var>46.17</var>be brought in a court within the county in which the registered office of the limited <br/>
<a id="pl.46.18"></a><var>46.18</var>liability company is located. It is not necessary to make members parties to the action or <br/>
<a id="pl.46.19"></a><var>46.19</var>proceeding unless relief is sought against them personally.<br/>
<br/>
<a id="bill.1.48.0"></a><a id="pl.46.20"></a><var>46.20</var>    Sec. 48. <b>[322C.0702] WINDING UP.</b><br/>
<a id="pl.46.21"></a><var>46.21</var>    Subdivision 1. <b>Winding up required.</b> A dissolved limited liability company shall <br/>
<a id="pl.46.22"></a><var>46.22</var>wind up its activities, and the company continues after dissolution only for the purpose <br/>
<a id="pl.46.23"></a><var>46.23</var>of winding up.<br/>
<a id="pl.46.24"></a><var>46.24</var>    Subd. 2. <b>Winding up process.</b> In winding up its activities, a limited liability <br/>
<a id="pl.46.25"></a><var>46.25</var>company:<br/>
<a id="pl.46.26"></a><var>46.26</var>(1) shall discharge the company's debts, obligations, or other liabilities, settle and <br/>
<a id="pl.46.27"></a><var>46.27</var>close the company's activities, and marshal and distribute the assets of the company; and<br/>
<a id="pl.46.28"></a><var>46.28</var>(2) may:<br/>
<a id="pl.46.29"></a><var>46.29</var>(i) file with the secretary of state a statement of dissolution stating the name of the <br/>
<a id="pl.46.30"></a><var>46.30</var>company and that the company is dissolved;<br/>
<a id="pl.46.31"></a><var>46.31</var>(ii) preserve the company activities and property as a going concern for a reasonable <br/>
<a id="pl.46.32"></a><var>46.32</var>time;<br/>
<a id="pl.46.33"></a><var>46.33</var>(iii) prosecute and defend actions and proceedings, whether civil, criminal, or <br/>
<a id="pl.46.34"></a><var>46.34</var>administrative;<br/>
<a id="pl.46.35"></a><var>46.35</var>(iv) transfer the company's property;<br/>
<a id="pl.47.1"></a><var>47.1</var>(v) settle disputes by mediation or arbitration;<br/>
<a id="pl.47.2"></a><var>47.2</var>(vi) file with the secretary of state a statement of termination stating the name of the <br/>
<a id="pl.47.3"></a><var>47.3</var>company and that the company is terminated; and<br/>
<a id="pl.47.4"></a><var>47.4</var>(vii) perform other acts necessary or appropriate to the winding up.<br/>
<a id="pl.47.5"></a><var>47.5</var>    Subd. 3. <b>Winding up by legal representative.</b> If a dissolved limited liability <br/>
<a id="pl.47.6"></a><var>47.6</var>company has no members, the legal representative of the last person to have been a <br/>
<a id="pl.47.7"></a><var>47.7</var>member may wind up the activities of the company. If the person does so, the person has <br/>
<a id="pl.47.8"></a><var>47.8</var>the powers of a sole manager under section 322C.0407, subdivision 3, and is deemed to be <br/>
<a id="pl.47.9"></a><var>47.9</var>a manager for the purposes of section 322C.0304, subdivision 1, clause (2).<br/>
<a id="pl.47.10"></a><var>47.10</var>    Subd. 4. <b>Winding up by person other than legal representative.</b> If the legal <br/>
<a id="pl.47.11"></a><var>47.11</var>representative under subdivision 3 declines or fails to wind up the company's activities, a <br/>
<a id="pl.47.12"></a><var>47.12</var>person may be appointed to do so by the consent of transferees owning a majority of the <br/>
<a id="pl.47.13"></a><var>47.13</var>rights to receive distributions as transferees at the time the consent is to be effective. A <br/>
<a id="pl.47.14"></a><var>47.14</var>person appointed under this subdivision:<br/>
<a id="pl.47.15"></a><var>47.15</var>(1) has the powers of a sole manager under section 322C.0407, subdivision 3, and <br/>
<a id="pl.47.16"></a><var>47.16</var>is deemed to be a manager for the purposes of section 322C.0304, subdivision 1, clause <br/>
<a id="pl.47.17"></a><var>47.17</var>(2); and<br/>
<a id="pl.47.18"></a><var>47.18</var>(2) shall promptly file with the secretary of state an amendment to the company's <br/>
<a id="pl.47.19"></a><var>47.19</var>articles of organization to:<br/>
<a id="pl.47.20"></a><var>47.20</var>(i) state that the company has no members;<br/>
<a id="pl.47.21"></a><var>47.21</var>(ii) state that the person has been appointed pursuant to this subdivision to wind up <br/>
<a id="pl.47.22"></a><var>47.22</var>the company; and<br/>
<a id="pl.47.23"></a><var>47.23</var>(iii) provide the street address of the person.<br/>
<a id="pl.47.24"></a><var>47.24</var>    Subd. 5. <b>Judicial supervision.</b> The appropriate court may order judicial supervision <br/>
<a id="pl.47.25"></a><var>47.25</var>of the winding up of a dissolved limited liability company, including the appointment of a <br/>
<a id="pl.47.26"></a><var>47.26</var>person to wind up the company's activities:<br/>
<a id="pl.47.27"></a><var>47.27</var>(1) on application of a member, if the applicant establishes good cause;<br/>
<a id="pl.47.28"></a><var>47.28</var>(2) on the application of a transferee, if:<br/>
<a id="pl.47.29"></a><var>47.29</var>(i) the company does not have any members;<br/>
<a id="pl.47.30"></a><var>47.30</var>(ii) the legal representative of the last person to have been a member declines or fails <br/>
<a id="pl.47.31"></a><var>47.31</var>to wind up the company's activities; and<br/>
<a id="pl.47.32"></a><var>47.32</var>(iii) within a reasonable time following the dissolution a person has not been <br/>
<a id="pl.47.33"></a><var>47.33</var>appointed pursuant to subdivision 4; or<br/>
<a id="pl.47.34"></a><var>47.34</var>(3) in connection with a proceeding under section 322C.0701, subdivision 1, clause <br/>
<a id="pl.47.35"></a><var>47.35</var>(4) or (5).<br/>
<br/>
<a id="bill.1.49.0"></a><a id="pl.48.1"></a><var>48.1</var>    Sec. 49. <b>[322C.0703] KNOWN CLAIMS AGAINST DISSOLVED LIMITED </b><br/>
<a id="pl.48.2"></a><var>48.2</var><b>LIABILITY COMPANY.</b><br/>
<a id="pl.48.3"></a><var>48.3</var>    Subdivision 1. <b>Notice of known claims.</b> Except as otherwise provided in <br/>
<a id="pl.48.4"></a><var>48.4</var>subdivision 4, a dissolved limited liability company may give notice of a known claim <br/>
<a id="pl.48.5"></a><var>48.5</var>under subdivision 2 that has the effect as provided in subdivision 3.<br/>
<a id="pl.48.6"></a><var>48.6</var>    Subd. 2. <b>Notice requirements.</b> A dissolved limited liability company may in a <br/>
<a id="pl.48.7"></a><var>48.7</var>record notify its known claimants of the dissolution. The notice must:<br/>
<a id="pl.48.8"></a><var>48.8</var>(1) specify the information required to be included in a claim;<br/>
<a id="pl.48.9"></a><var>48.9</var>(2) provide a mailing address to which the claim is to be sent;<br/>
<a id="pl.48.10"></a><var>48.10</var>(3) state the deadline for receipt of the claim, which may not be less than 120 days <br/>
<a id="pl.48.11"></a><var>48.11</var>after the date the notice is received by the claimant; and<br/>
<a id="pl.48.12"></a><var>48.12</var>(4) state that the claim will be barred if not received by the deadline.<br/>
<a id="pl.48.13"></a><var>48.13</var>    Subd. 3. <b>Claims barred.</b> A claim against a dissolved limited liability company is <br/>
<a id="pl.48.14"></a><var>48.14</var>barred if the requirements of subdivision 2 are met and:<br/>
<a id="pl.48.15"></a><var>48.15</var>(1) the claim is not received by the specified deadline; or<br/>
<a id="pl.48.16"></a><var>48.16</var>(2) if the claim is timely received but rejected by the company:<br/>
<a id="pl.48.17"></a><var>48.17</var>(i) the company causes the claimant to receive a notice in a record stating that the <br/>
<a id="pl.48.18"></a><var>48.18</var>claim is rejected and will be barred unless the claimant commences an action against the <br/>
<a id="pl.48.19"></a><var>48.19</var>company to enforce the claim within 90 days after the claimant receives the notice; and<br/>
<a id="pl.48.20"></a><var>48.20</var>(ii) the claimant does not commence the required action within the 90 days.<br/>
<a id="pl.48.21"></a><var>48.21</var>    Subd. 4. <b>Bar limitation.</b> This section does not apply to a claim based on an event <br/>
<a id="pl.48.22"></a><var>48.22</var>occurring after the effective date of dissolution or a liability that on that date is contingent.<br/>
<br/>
<a id="bill.1.50.0"></a><a id="pl.48.23"></a><var>48.23</var>    Sec. 50. <b>[322C.0704] OTHER CLAIMS AGAINST DISSOLVED LIMITED </b><br/>
<a id="pl.48.24"></a><var>48.24</var><b>LIABILITY COMPANY.</b><br/>
<a id="pl.48.25"></a><var>48.25</var>    Subdivision 1. <b>Publication of notice.</b> A dissolved limited liability company may <br/>
<a id="pl.48.26"></a><var>48.26</var>publish notice of its dissolution and request persons having claims against the company <br/>
<a id="pl.48.27"></a><var>48.27</var>to present them according to the notice.<br/>
<a id="pl.48.28"></a><var>48.28</var>    Subd. 2. <b>Published notice requirements.</b> The notice authorized by subdivision 1 <br/>
<a id="pl.48.29"></a><var>48.29</var>must:<br/>
<a id="pl.48.30"></a><var>48.30</var>(1) be published at least once in a newspaper of general circulation in the county or <br/>
<a id="pl.48.31"></a><var>48.31</var>counties in this state in which the dissolved limited liability company's principal office is <br/>
<a id="pl.48.32"></a><var>48.32</var>located or, if it has none in this state, in the county or counties in which the company's <br/>
<a id="pl.48.33"></a><var>48.33</var>registered office is or was last located;<br/>
<a id="pl.48.34"></a><var>48.34</var>(2) describe the information required to be contained in a claim and provide a <br/>
<a id="pl.48.35"></a><var>48.35</var>mailing address to which the claim is to be sent; and<br/>
<a id="pl.49.1"></a><var>49.1</var>(3) state that a claim against the company is barred unless an action to enforce the <br/>
<a id="pl.49.2"></a><var>49.2</var>claim is commenced within five years after publication of the notice.<br/>
<a id="pl.49.3"></a><var>49.3</var>    Subd. 3. <b>Claims barred.</b> If a dissolved limited liability company publishes a notice <br/>
<a id="pl.49.4"></a><var>49.4</var>according to subdivision 2, unless the claimant commences an action to enforce the claim <br/>
<a id="pl.49.5"></a><var>49.5</var>against the company within five years after the publication date of the notice, the claim of <br/>
<a id="pl.49.6"></a><var>49.6</var>each of the following claimants is barred:<br/>
<a id="pl.49.7"></a><var>49.7</var>(1) a claimant that did not receive notice in a record under section 322C.0703;<br/>
<a id="pl.49.8"></a><var>49.8</var>(2) a claimant whose claim was timely sent to the company but not acted on; and<br/>
<a id="pl.49.9"></a><var>49.9</var>(3) a claimant whose claim is contingent at, or based on an event occurring after, <br/>
<a id="pl.49.10"></a><var>49.10</var>the effective date of dissolution.<br/>
<a id="pl.49.11"></a><var>49.11</var>    Subd. 4. <b>Claims enforcement.</b> A claim not barred under this section may be <br/>
<a id="pl.49.12"></a><var>49.12</var>enforced:<br/>
<a id="pl.49.13"></a><var>49.13</var>(1) against a dissolved limited liability company, to the extent of its undistributed <br/>
<a id="pl.49.14"></a><var>49.14</var>assets; and<br/>
<a id="pl.49.15"></a><var>49.15</var>(2) if assets of the company have been distributed after dissolution, against a member <br/>
<a id="pl.49.16"></a><var>49.16</var>or transferee to the extent of that person's proportionate share of the claim or of the assets <br/>
<a id="pl.49.17"></a><var>49.17</var>distributed to the member or transferee after dissolution, whichever is less, but a person's <br/>
<a id="pl.49.18"></a><var>49.18</var>total liability for all claims under this clause does not exceed the total amount of assets <br/>
<a id="pl.49.19"></a><var>49.19</var>distributed to the person after dissolution.<br/>
<br/>
<a id="bill.1.51.0"></a><a id="pl.49.20"></a><var>49.20</var>    Sec. 51. <b>[322C.0705] ADMINISTRATIVE TERMINATION.</b><br/>
<a id="pl.49.21"></a><var>49.21</var>(a) A domestic limited liability company that has not filed a renewal pursuant to <br/>
<a id="pl.49.22"></a><var>49.22</var>this section is administratively terminated. The secretary of state shall issue a certificate <br/>
<a id="pl.49.23"></a><var>49.23</var>of administrative termination which must be filed in the Office of the Secretary of State. <br/>
<a id="pl.49.24"></a><var>49.24</var>The secretary of state must also make available in an electronic format the names of <br/>
<a id="pl.49.25"></a><var>49.25</var>the terminated limited liability companies.<br/>
<a id="pl.49.26"></a><var>49.26</var>(b) A non-Minnesota limited liability company that has not filed a renewal pursuant to <br/>
<a id="pl.49.27"></a><var>49.27</var>this section shall have its authority to do business in Minnesota revoked pursuant to section <br/>
<a id="pl.49.28"></a><var>49.28</var>322C.0806. The secretary of state must issue a certificate of revocation which must be filed <br/>
<a id="pl.49.29"></a><var>49.29</var>in the Office of the Secretary of State. The secretary of state must also make available in <br/>
<a id="pl.49.30"></a><var>49.30</var>an electronic format the names of the revoked non-Minnesota limited liability companies.<br/>
<br/>
<a id="bill.1.52.0"></a><a id="pl.49.31"></a><var>49.31</var>    Sec. 52. <b>[322C.0706] REINSTATEMENT FOLLOWING ADMINISTRATIVE </b><br/>
<a id="pl.49.32"></a><var>49.32</var><b>DISSOLUTION.</b><br/>
<a id="pl.50.1"></a><var>50.1</var>(a) If a limited liability company is administratively terminated or has its authority to <br/>
<a id="pl.50.2"></a><var>50.2</var>do business in Minnesota revoked, it may retroactively reinstate its existence or authority <br/>
<a id="pl.50.3"></a><var>50.3</var>to do business by filing a single annual renewal and paying a $25 fee.<br/>
<a id="pl.50.4"></a><var>50.4</var>(b) For a domestic limited liability company, filing the annual renewal with the <br/>
<a id="pl.50.5"></a><var>50.5</var>secretary of state:<br/>
<a id="pl.50.6"></a><var>50.6</var>(1) returns the limited liability company to active status as of the date of the <br/>
<a id="pl.50.7"></a><var>50.7</var>administrative termination;<br/>
<a id="pl.50.8"></a><var>50.8</var>(2) validates contracts or other acts within the authority of the articles, and the <br/>
<a id="pl.50.9"></a><var>50.9</var>limited liability company is liable for those contracts or acts; and<br/>
<a id="pl.50.10"></a><var>50.10</var>(3) restores to the limited liability company all assets and rights of the limited <br/>
<a id="pl.50.11"></a><var>50.11</var>liability company and its members to the extent they were held by the limited liability <br/>
<a id="pl.50.12"></a><var>50.12</var>company and its members before the administrative termination occurred, except to the <br/>
<a id="pl.50.13"></a><var>50.13</var>extent that assets or rights were affected by acts occurring after the termination, sold, or <br/>
<a id="pl.50.14"></a><var>50.14</var>otherwise distributed after that time.<br/>
<a id="pl.50.15"></a><var>50.15</var>(c) For a non-Minnesota limited liability company, filing the annual renewal restores <br/>
<a id="pl.50.16"></a><var>50.16</var>the limited liability company's ability to do business in Minnesota and the rights and <br/>
<a id="pl.50.17"></a><var>50.17</var>privileges that accompany that authority.<br/>
<br/>
<a id="bill.1.53.0"></a><a id="pl.50.18"></a><var>50.18</var>    Sec. 53. <b>[322C.0707] DISTRIBUTION OF ASSETS IN WINDING UP LIMITED </b><br/>
<a id="pl.50.19"></a><var>50.19</var><b>LIABILITY COMPANY'S ACTIVITIES.</b><br/>
<a id="pl.50.20"></a><var>50.20</var>    Subdivision 1. <b>Application of assets to discharge obligations.</b> In winding up its <br/>
<a id="pl.50.21"></a><var>50.21</var>activities, a limited liability company must apply its assets to discharge its obligations to <br/>
<a id="pl.50.22"></a><var>50.22</var>creditors, including members that are creditors.<br/>
<a id="pl.50.23"></a><var>50.23</var>    Subd. 2. <b>Distributions of surplus.</b> After a limited liability company complies <br/>
<a id="pl.50.24"></a><var>50.24</var>with subdivision 1, any surplus must be distributed in the following order, subject to any <br/>
<a id="pl.50.25"></a><var>50.25</var>charging order in effect under section 322C.0503:<br/>
<a id="pl.50.26"></a><var>50.26</var>(1) to each person owning a transferable interest that reflects contributions made by <br/>
<a id="pl.50.27"></a><var>50.27</var>a member and not previously returned, an amount equal to the value of the unreturned <br/>
<a id="pl.50.28"></a><var>50.28</var>contributions; and<br/>
<a id="pl.50.29"></a><var>50.29</var>(2) in equal shares among members and dissociated members, except to the extent <br/>
<a id="pl.50.30"></a><var>50.30</var>necessary to comply with any transfer effective under section 322C.0502.<br/>
<a id="pl.50.31"></a><var>50.31</var>    Subd. 3. <b>Proportionate distribution.</b> If a limited liability company does not have <br/>
<a id="pl.50.32"></a><var>50.32</var>sufficient surplus to comply with subdivision 2, clause (1), any surplus must be distributed <br/>
<a id="pl.50.33"></a><var>50.33</var>among the owners of transferable interests in proportion to the value of their respective <br/>
<a id="pl.50.34"></a><var>50.34</var>unreturned contributions.<br/>
<a id="pl.51.1"></a><var>51.1</var>    Subd. 4. <b>Form of distribution.</b> All distributions made under subdivisions 2 and 3 <br/>
<a id="pl.51.2"></a><var>51.2</var>must be paid in money.<br/>
<br/>
<a id="bill.1.54.0"></a><a id="pl.51.3"></a><var>51.3</var>    Sec. 54. <b>[322C.0708] ACTION BY ATTORNEY GENERAL.</b><br/>
<a id="pl.51.4"></a><var>51.4</var>    Subdivision 1. <b>When permitted.</b> A limited liability company may be involuntarily <br/>
<a id="pl.51.5"></a><var>51.5</var>dissolved, wound up, and terminated by a decree of a court in this state in an action filed <br/>
<a id="pl.51.6"></a><var>51.6</var>by the attorney general when it is established that:<br/>
<a id="pl.51.7"></a><var>51.7</var>(1) the articles of organization were procured through fraud;<br/>
<a id="pl.51.8"></a><var>51.8</var>(2) the limited liability company was organized for a purpose not permitted by <br/>
<a id="pl.51.9"></a><var>51.9</var>this chapter;<br/>
<a id="pl.51.10"></a><var>51.10</var>(3) the limited liability company failed to comply with the requirements essential to <br/>
<a id="pl.51.11"></a><var>51.11</var>organization under this chapter;<br/>
<a id="pl.51.12"></a><var>51.12</var>(4) the limited liability company has flagrantly violated a provision of this chapter, <br/>
<a id="pl.51.13"></a><var>51.13</var>has violated a provision of this chapter more than once, or has violated more than one <br/>
<a id="pl.51.14"></a><var>51.14</var>provision of this chapter; or<br/>
<a id="pl.51.15"></a><var>51.15</var>(5) the limited liability company has acted, or failed to act, in a manner that constitutes <br/>
<a id="pl.51.16"></a><var>51.16</var>surrender or abandonment of the limited liability company privileges or enterprise.<br/>
<a id="pl.51.17"></a><var>51.17</var>    Subd. 2. <b>Notice to limited liability company and correction.</b> An action must not <br/>
<a id="pl.51.18"></a><var>51.18</var>be commenced under this section until 30 days after notice to the limited liability company <br/>
<a id="pl.51.19"></a><var>51.19</var>by the attorney general of the reason for the filing of the action. If the reason for filing the <br/>
<a id="pl.51.20"></a><var>51.20</var>action is an act that the limited liability company has done, or omitted to do, and the act or <br/>
<a id="pl.51.21"></a><var>51.21</var>omission may be corrected by an amendment of the articles of organization, a member <br/>
<a id="pl.51.22"></a><var>51.22</var>control agreement, or the bylaws or by performance of or abstention from the act, the <br/>
<a id="pl.51.23"></a><var>51.23</var>attorney general shall give the limited liability company 30 additional days in which to <br/>
<a id="pl.51.24"></a><var>51.24</var>effect the correction before filing the action.<br/>

<a id="bill.1.55.0"></a><a id="pl.51.26"></a><var>51.26</var>    Sec. 55. <b>[322C.0801] GOVERNING LAW.</b><br/>
<a id="pl.51.27"></a><var>51.27</var>    Subdivision 1. <b>Scope of foreign law.</b> The law of the state or other jurisdiction under <br/>
<a id="pl.51.28"></a><var>51.28</var>which a foreign limited liability company is formed governs:<br/>
<a id="pl.51.29"></a><var>51.29</var>(1) the internal affairs of the company; and<br/>
<a id="pl.51.30"></a><var>51.30</var>(2) the liability of a member as member, a manager as manager, and a governor as <br/>
<a id="pl.51.31"></a><var>51.31</var>governor for the debts, obligations, or other liabilities of the company.<br/>
<a id="pl.51.32"></a><var>51.32</var>    Subd. 2. <b>Restriction on denial of certificate of authority.</b> A foreign limited liability <br/>
<a id="pl.51.33"></a><var>51.33</var>company may not be denied a certificate of authority by reason of any difference between <br/>
<a id="pl.51.34"></a><var>51.34</var>the law of the jurisdiction under which the company is formed and the law of this state.<br/>
<a id="pl.52.1"></a><var>52.1</var>    Subd. 3. <b>No increase in foreign company's powers.</b> A certificate of authority does <br/>
<a id="pl.52.2"></a><var>52.2</var>not authorize a foreign limited liability company to engage in any business or exercise any <br/>
<a id="pl.52.3"></a><var>52.3</var>power that a limited liability company may not engage in or exercise in this state.<br/>
<br/>
<a id="bill.1.56.0"></a><a id="pl.52.4"></a><var>52.4</var>    Sec. 56. <b>[322C.0802] APPLICATION FOR CERTIFICATE OF AUTHORITY.</b><br/>
<a id="pl.52.5"></a><var>52.5</var>Before transacting business in this state, a foreign limited liability company shall <br/>
<a id="pl.52.6"></a><var>52.6</var>obtain a certificate of authority to transact business in this state by filing an application <br/>
<a id="pl.52.7"></a><var>52.7</var>with the secretary of state together with a total fee of $185. The application must state:<br/>
<a id="pl.52.8"></a><var>52.8</var>(1) the name of the company and any alternate name adopted pursuant to section <br/>
<a id="pl.52.9"></a><var>52.9</var>322C.0805, subdivision 1;<br/>
<a id="pl.52.10"></a><var>52.10</var>(2) the name of the state or other jurisdiction under whose law the company is formed;<br/>
<a id="pl.52.11"></a><var>52.11</var>(3) a statement that the foreign limited liability company has complied with the <br/>
<a id="pl.52.12"></a><var>52.12</var>organizational laws in the jurisdiction under whose laws the company is formed;<br/>
<a id="pl.52.13"></a><var>52.13</var>(4) the street address of the company's principal place of business and, if the law of <br/>
<a id="pl.52.14"></a><var>52.14</var>the jurisdiction under which the company is formed requires the company to maintain an <br/>
<a id="pl.52.15"></a><var>52.15</var>office in that jurisdiction, the street address of the required office; and<br/>
<a id="pl.52.16"></a><var>52.16</var>(5) the name and street address of the company's initial registered office and agent <br/>
<a id="pl.52.17"></a><var>52.17</var>for service of process in this state.<br/>
<br/>
<a id="bill.1.57.0"></a><a id="pl.52.18"></a><var>52.18</var>    Sec. 57. <b>[322C.0803] TRANSACTIONS NOT CONSTITUTING TRANSACTING </b><br/>
<a id="pl.52.19"></a><var>52.19</var><b>BUSINESS.</b><br/>
<a id="pl.52.20"></a><var>52.20</var>    Subdivision 1. <b>Activities not constituting transacting business.</b> A foreign limited <br/>
<a id="pl.52.21"></a><var>52.21</var>liability company shall not be considered to be transacting business in this state for the <br/>
<a id="pl.52.22"></a><var>52.22</var>purposes of this chapter solely by reason of carrying on in this state any one or more of <br/>
<a id="pl.52.23"></a><var>52.23</var>the following, including:<br/>
<a id="pl.52.24"></a><var>52.24</var>(1) maintaining or defending any action or suit or any administrative or arbitration <br/>
<a id="pl.52.25"></a><var>52.25</var>proceeding, or effecting the settlement thereof or the settlement of claims or disputes;<br/>
<a id="pl.52.26"></a><var>52.26</var>(2) holding meetings of its managers, governors, or members or carrying on other <br/>
<a id="pl.52.27"></a><var>52.27</var>activities concerning its internal affairs;<br/>
<a id="pl.52.28"></a><var>52.28</var>(3) maintaining bank accounts;<br/>
<a id="pl.52.29"></a><var>52.29</var>(4) maintaining offices or agencies for the transfer, exchange, and registration of <br/>
<a id="pl.52.30"></a><var>52.30</var>its securities, or appointing and maintaining trustees or depositaries with relation to its <br/>
<a id="pl.52.31"></a><var>52.31</var>securities;<br/>
<a id="pl.52.32"></a><var>52.32</var>(5) holding title to and managing real or personal property, or any interest therein, <br/>
<a id="pl.52.33"></a><var>52.33</var>situated in this state, as executor of the will or administrator of the estate of any decedent, <br/>
<a id="pl.52.34"></a><var>52.34</var>as trustee of any trust, or as guardian of any person or conservator of any person's estate;<br/>
<a id="pl.53.1"></a><var>53.1</var>(6) making, participating in, or investing in loans or creating, as borrower or lender, <br/>
<a id="pl.53.2"></a><var>53.2</var>or otherwise acquiring indebtedness or mortgages or other security interests in real or <br/>
<a id="pl.53.3"></a><var>53.3</var>personal property;<br/>
<a id="pl.53.4"></a><var>53.4</var>(7) securing or collecting its debts or enforcing any rights in property securing <br/>
<a id="pl.53.5"></a><var>53.5</var>them; or<br/>
<a id="pl.53.6"></a><var>53.6</var>(8) conducting an isolated transaction completed within a period of 30 days and not <br/>
<a id="pl.53.7"></a><var>53.7</var>in the course of a number of repeated transactions of like nature.<br/>
<a id="pl.53.8"></a><var>53.8</var>    Subd. 2. <b>Property ownership.</b> For purposes of sections 322C.0801 to 322C.0809, <br/>
<a id="pl.53.9"></a><var>53.9</var>the ownership in this state of income-producing real property or tangible personal <br/>
<a id="pl.53.10"></a><var>53.10</var>property, other than property excluded under subdivision 1, constitutes transacting <br/>
<a id="pl.53.11"></a><var>53.11</var>business in this state.<br/>
<a id="pl.53.12"></a><var>53.12</var>    Subd. 3. <b>Limitations.</b> This section does not apply in determining the contacts <br/>
<a id="pl.53.13"></a><var>53.13</var>or activities that may subject a foreign limited liability company to service of process, <br/>
<a id="pl.53.14"></a><var>53.14</var>taxation, or regulation under law of this state other than this chapter.<br/>
<br/>
<a id="bill.1.58.0"></a><a id="pl.53.15"></a><var>53.15</var>    Sec. 58. <b>[322C.0804] FILING OF CERTIFICATE OF AUTHORITY.</b><br/>
<a id="pl.53.16"></a><var>53.16</var>Unless the secretary of state determines that an application for a certificate of <br/>
<a id="pl.53.17"></a><var>53.17</var>authority does not comply with the filing requirements of this chapter, the secretary of <br/>
<a id="pl.53.18"></a><var>53.18</var>state, upon payment of all filing fees, shall file the application of a foreign limited liability <br/>
<a id="pl.53.19"></a><var>53.19</var>company; prepare, sign, and file a certificate of authority to transact business in this state; <br/>
<a id="pl.53.20"></a><var>53.20</var>and send an image of the filed certificate to the company or its representative.<br/>
<br/>
<a id="bill.1.59.0"></a><a id="pl.53.21"></a><var>53.21</var>    Sec. 59. <b>[322C.0805] NONCOMPLYING NAME OF FOREIGN LIMITED </b><br/>
<a id="pl.53.22"></a><var>53.22</var><b>LIABILITY COMPANY.</b><br/>
<a id="pl.53.23"></a><var>53.23</var>    Subdivision 1. <b>Noncomplying name.</b> A foreign limited liability company whose <br/>
<a id="pl.53.24"></a><var>53.24</var>name does not comply with section 322C.0108 may not obtain a certificate of authority <br/>
<a id="pl.53.25"></a><var>53.25</var>until it adopts, for the purpose of transacting business in this state, an alternate name <br/>
<a id="pl.53.26"></a><var>53.26</var>that complies with section 322C.0108. A foreign limited liability company that adopts <br/>
<a id="pl.53.27"></a><var>53.27</var>an alternate name under this subdivision and obtains a certificate of authority with the <br/>
<a id="pl.53.28"></a><var>53.28</var>alternate name need not comply with section 333.01. After obtaining a certificate of <br/>
<a id="pl.53.29"></a><var>53.29</var>authority with an alternate name, a foreign limited liability company shall transact business <br/>
<a id="pl.53.30"></a><var>53.30</var>in this state under the alternate name unless the company is authorized under section <br/>
<a id="pl.53.31"></a><var>53.31</var>333.01 to transact business in this state under another name. A foreign limited liability <br/>
<a id="pl.53.32"></a><var>53.32</var>company may adopt an alternate name even if its name complies with section 322C.0108. <br/>
<a id="pl.53.33"></a><var>53.33</var>    Subd. 2. <b>Change in name. </b> If a foreign limited liability company authorized to <br/>
<a id="pl.53.34"></a><var>53.34</var>transact business in this state changes its name to one that does not comply with section <br/>
<a id="pl.54.1"></a><var>54.1</var>322C.0108, it may not thereafter transact business in this state until it complies with <br/>
<a id="pl.54.2"></a><var>54.2</var>subdivision 1 and obtains an amended certificate of authority.<br/>
<br/>
<a id="bill.1.60.0"></a><a id="pl.54.3"></a><var>54.3</var>    Sec. 60. <b>[322C.0806] REVOCATION OF CERTIFICATE OF AUTHORITY.</b><br/>
<a id="pl.54.4"></a><var>54.4</var>(a) The certificate of authority of a foreign limited liability company to transact <br/>
<a id="pl.54.5"></a><var>54.5</var>business in this state shall be revoked by the secretary of state if it fails:<br/>
<a id="pl.54.6"></a><var>54.6</var>(1) to pay any fee due under the provisions of this chapter;<br/>
<a id="pl.54.7"></a><var>54.7</var>(2) to designate a registered agent when a vacancy occurs in that office, or when the <br/>
<a id="pl.54.8"></a><var>54.8</var>appointed registered agent resigns or becomes disqualified or incapacitated;<br/>
<a id="pl.54.9"></a><var>54.9</var>(3) to file certificates of merger or name change, as required in section 322C.0805, <br/>
<a id="pl.54.10"></a><var>54.10</var>subdivision 2; or<br/>
<a id="pl.54.11"></a><var>54.11</var>(4) to file an annual renewal.<br/>
<a id="pl.54.12"></a><var>54.12</var>(b) On finding that a default has occurred under paragraph (a), clauses (1) to (3), <br/>
<a id="pl.54.13"></a><var>54.13</var>the secretary of state shall notify the foreign limited liability company that the default <br/>
<a id="pl.54.14"></a><var>54.14</var>exists and that its certificate of authority will be revoked unless the default shall be cured <br/>
<a id="pl.54.15"></a><var>54.15</var>within 30 days.<br/>
<a id="pl.54.16"></a><var>54.16</var>(c)(1) The secretary of state shall revoke the certificate of authority of a foreign <br/>
<a id="pl.54.17"></a><var>54.17</var>limited liability company that is in default under paragraph (a), clause (4), for failure to <br/>
<a id="pl.54.18"></a><var>54.18</var>file an annual renewal under section 5.34.<br/>
<a id="pl.54.19"></a><var>54.19</var>(2) The secretary of state shall revoke the certificate of authority of a foreign limited <br/>
<a id="pl.54.20"></a><var>54.20</var>liability company that is in default under paragraph (a), clauses (1) to (3), if the default <br/>
<a id="pl.54.21"></a><var>54.21</var>is not cured within the time provided under paragraph (b); provided that for good cause <br/>
<a id="pl.54.22"></a><var>54.22</var>shown the secretary of state may extend the 30-day period from time to time, but in no <br/>
<a id="pl.54.23"></a><var>54.23</var>event may the aggregate of all extensions granted exceed 180 days or the period of time of <br/>
<a id="pl.54.24"></a><var>54.24</var>any applicable extension granted by the Department of Revenue for filing the income tax <br/>
<a id="pl.54.25"></a><var>54.25</var>return of the corporation, whichever is greater.<br/>
<a id="pl.54.26"></a><var>54.26</var>(d)(1) Upon revoking the certificate of authority of a foreign limited liability company <br/>
<a id="pl.54.27"></a><var>54.27</var>because of a default under paragraph (a), clauses (1) to (3), the secretary of state shall:<br/>
<a id="pl.54.28"></a><var>54.28</var>(i) issue a certificate of revocation; and<br/>
<a id="pl.54.29"></a><var>54.29</var>(ii) provide a notice of the revocation to the foreign limited liability company.<br/>
<a id="pl.54.30"></a><var>54.30</var>(2) Upon revoking the certificate of authority of a foreign limited liability company <br/>
<a id="pl.54.31"></a><var>54.31</var>because of a default under paragraph (a), clause (4), the secretary of state shall issue a <br/>
<a id="pl.54.32"></a><var>54.32</var>certificate of revocation, and the certificate must be filed in the Office of the Secretary of <br/>
<a id="pl.54.33"></a><var>54.33</var>State. No further notice to the foreign limited liability company is required.<br/>
<a id="pl.54.34"></a><var>54.34</var>(3) The secretary of state shall also make the names of the revoked foreign limited <br/>
<a id="pl.54.35"></a><var>54.35</var>liability companies available in an electronic format.<br/>
<a id="pl.55.1"></a><var>55.1</var>(e) Upon the issuance of such certificate of revocation, the authority of the foreign <br/>
<a id="pl.55.2"></a><var>55.2</var>limited liability company to transact business in this state shall cease.<br/>
<br/>
<a id="bill.1.61.0"></a><a id="pl.55.3"></a><var>55.3</var>    Sec. 61. <b>[322C.0807] WITHDRAWAL OF FOREIGN LIMITED LIABILITY </b><br/>
<a id="pl.55.4"></a><var>55.4</var><b>COMPANY.</b><br/>
<a id="pl.55.5"></a><var>55.5</var>(a) If a foreign limited liability company holding a certificate of authority desires to <br/>
<a id="pl.55.6"></a><var>55.6</var>withdraw, it shall file with the secretary of state an application for withdrawal.<br/>
<a id="pl.55.7"></a><var>55.7</var>(b) The application for withdrawal shall set forth:<br/>
<a id="pl.55.8"></a><var>55.8</var>(1) the name of the foreign limited liability company corporation and the state or <br/>
<a id="pl.55.9"></a><var>55.9</var>country under the laws of which it is organized;<br/>
<a id="pl.55.10"></a><var>55.10</var>(2) that it has no property located in this state and has ceased to transact business <br/>
<a id="pl.55.11"></a><var>55.11</var>therein;<br/>
<a id="pl.55.12"></a><var>55.12</var>(3) that its governing body has duly determined to surrender its authority to transact <br/>
<a id="pl.55.13"></a><var>55.13</var>business in this state;<br/>
<a id="pl.55.14"></a><var>55.14</var>(4) that it revokes the authority of its registered agent in this state to accept service <br/>
<a id="pl.55.15"></a><var>55.15</var>of process;<br/>
<a id="pl.55.16"></a><var>55.16</var>(5) the address to which the secretary of state shall mail a copy of any process against <br/>
<a id="pl.55.17"></a><var>55.17</var>the foreign limited liability company that may be served upon the secretary of state;<br/>
<a id="pl.55.18"></a><var>55.18</var>(6) that it will pay to the commissioner of management and budget the amount of <br/>
<a id="pl.55.19"></a><var>55.19</var>any additional license fees properly found by the secretary of state to be then due from <br/>
<a id="pl.55.20"></a><var>55.20</var>such foreign limited liability company; and<br/>
<a id="pl.55.21"></a><var>55.21</var>(7) additional information required or demanded to enable the secretary of state <br/>
<a id="pl.55.22"></a><var>55.22</var>to determine the additional license fees, if any, payable by the foreign limited liability <br/>
<a id="pl.55.23"></a><var>55.23</var>company.<br/>
<a id="pl.55.24"></a><var>55.24</var>(c) The application for withdrawal shall be executed on behalf of the foreign limited <br/>
<a id="pl.55.25"></a><var>55.25</var>liability company pursuant to section 322C.0203.<br/>
<a id="pl.55.26"></a><var>55.26</var>(d) The application for withdrawal shall be delivered to the secretary of state. Upon <br/>
<a id="pl.55.27"></a><var>55.27</var>receiving and examining the same, and upon finding that it conforms to the provisions of <br/>
<a id="pl.55.28"></a><var>55.28</var>this chapter, the secretary of state shall, when all license fees, filing fees, and other charges <br/>
<a id="pl.55.29"></a><var>55.29</var>have been paid as required by law, file the same and shall issue and record a certificate <br/>
<a id="pl.55.30"></a><var>55.30</var>of withdrawal. Upon the issuance of the certificate, the authority of the foreign limited <br/>
<a id="pl.55.31"></a><var>55.31</var>liability company to transact business in this state shall cease.<br/>
<a id="pl.55.32"></a><var>55.32</var>(e) The filing with the secretary of state by the corporation of a certificate of <br/>
<a id="pl.55.33"></a><var>55.33</var>dissolution, or a certificate of merger if the foreign limited liability company is not the <br/>
<a id="pl.55.34"></a><var>55.34</var>surviving limited liability company from the proper officer of the state or country under <br/>
<a id="pl.55.35"></a><var>55.35</var>the laws of which the foreign limited liability company is organized, constitutes a valid <br/>
<a id="pl.56.1"></a><var>56.1</var>application of withdrawal and the authority of the foreign limited liability company to <br/>
<a id="pl.56.2"></a><var>56.2</var>transact business in this state shall cease upon filing of the certificate.<br/>
<br/>
<a id="bill.1.62.0"></a><a id="pl.56.3"></a><var>56.3</var>    Sec. 62. <b>[322C.0808] EFFECT OF FAILURE TO HAVE CERTIFICATE OF </b><br/>
<a id="pl.56.4"></a><var>56.4</var><b>AUTHORITY.</b><br/>
<a id="pl.56.5"></a><var>56.5</var>    Subdivision 1. <b>Certificate of authority required.</b> A foreign limited liability <br/>
<a id="pl.56.6"></a><var>56.6</var>company transacting business in this state may not maintain an action or proceeding in <br/>
<a id="pl.56.7"></a><var>56.7</var>this state unless it has a certificate of authority to transact business in this state.<br/>
<a id="pl.56.8"></a><var>56.8</var>    Subd. 2. <b>Actions not affected.</b> The failure of a foreign limited liability company <br/>
<a id="pl.56.9"></a><var>56.9</var>to have a certificate of authority to transact business in this state does not impair the <br/>
<a id="pl.56.10"></a><var>56.10</var>validity of a contract or act of the company or prevent the company from defending an <br/>
<a id="pl.56.11"></a><var>56.11</var>action or proceeding in this state.<br/>
<a id="pl.56.12"></a><var>56.12</var>    Subd. 3. <b>Limitation on liability.</b> A member, manager, or governor of a foreign <br/>
<a id="pl.56.13"></a><var>56.13</var>limited liability company is not liable for the debts, obligations, or other liabilities of the <br/>
<a id="pl.56.14"></a><var>56.14</var>company solely because the company transacted business in this state without a certificate <br/>
<a id="pl.56.15"></a><var>56.15</var>of authority.<br/>
<a id="pl.56.16"></a><var>56.16</var>    Subd. 4. <b>Secretary of state as agent.</b> If a foreign limited liability company <br/>
<a id="pl.56.17"></a><var>56.17</var>transacts business in this state without a certificate of authority or cancels its certificate of <br/>
<a id="pl.56.18"></a><var>56.18</var>authority, it appoints the secretary of state as its agent for service of process for rights of <br/>
<a id="pl.56.19"></a><var>56.19</var>action arising out of the transaction of business in this state.<br/>
<br/>
<a id="bill.1.63.0"></a><a id="pl.56.20"></a><var>56.20</var>    Sec. 63. <b>[322C.0809] ACTION BY ATTORNEY GENERAL.</b><br/>
<a id="pl.56.21"></a><var>56.21</var>The attorney general may maintain an action to enjoin a foreign limited liability <br/>
<a id="pl.56.22"></a><var>56.22</var>company from transacting business in this state in violation of sections 322C.0801 to <br/>
<a id="pl.56.23"></a><var>56.23</var>322C.0809.<br/>

<a id="bill.1.64.0"></a><a id="pl.56.25"></a><var>56.25</var>    Sec. 64. <b>[322C.0901] DIRECT ACTION BY MEMBER.</b><br/>
<a id="pl.56.26"></a><var>56.26</var>    Subdivision 1. <b>Direct actions allowed.</b> Subject to subdivision 2, a member may <br/>
<a id="pl.56.27"></a><var>56.27</var>maintain a direct action against another member, a manager, a governor, or the limited <br/>
<a id="pl.56.28"></a><var>56.28</var>liability company to enforce the member's rights and otherwise protect the member's <br/>
<a id="pl.56.29"></a><var>56.29</var>interests, including rights and interests under the operating agreement or this chapter or <br/>
<a id="pl.56.30"></a><var>56.30</var>arising independently of the membership relationship.<br/>
<a id="pl.56.31"></a><var>56.31</var>    Subd. 2. <b>Action requirements.</b> A member maintaining a direct action under this <br/>
<a id="pl.56.32"></a><var>56.32</var>section must plead and prove an actual or threatened injury that is not solely the result of <br/>
<a id="pl.56.33"></a><var>56.33</var>an injury suffered or threatened to be suffered by the limited liability company.<br/>
<br/>
<a id="bill.1.65.0"></a><a id="pl.57.1"></a><var>57.1</var>    Sec. 65. <b>[322C.0902] DERIVATIVE ACTION.</b><br/>
<a id="pl.57.2"></a><var>57.2</var>A member may maintain a derivative action to enforce a right of a limited liability <br/>
<a id="pl.57.3"></a><var>57.3</var>company if:<br/>
<a id="pl.57.4"></a><var>57.4</var>(1) the member first makes a demand on the other members in a member-managed <br/>
<a id="pl.57.5"></a><var>57.5</var>limited liability company, the managers of a manager-managed limited liability company, <br/>
<a id="pl.57.6"></a><var>57.6</var>or the board of governors of a board-managed limited liability company requesting that <br/>
<a id="pl.57.7"></a><var>57.7</var>they cause the company to bring an action to enforce the right, and the member or board <br/>
<a id="pl.57.8"></a><var>57.8</var>does not bring the action within a reasonable time; or<br/>
<a id="pl.57.9"></a><var>57.9</var>(2) a demand under clause (1) would be futile.<br/>
<br/>
<a id="bill.1.66.0"></a><a id="pl.57.10"></a><var>57.10</var>    Sec. 66. <b>[322C.0903] PROPER PLAINTIFF.</b><br/>
<a id="pl.57.11"></a><var>57.11</var>    Subdivision 1. <b>Member status required.</b> Except as otherwise provided in <br/>
<a id="pl.57.12"></a><var>57.12</var>subdivision 2, a derivative action under section 322C.0902 may be maintained only by a <br/>
<a id="pl.57.13"></a><var>57.13</var>person that is a member at the time the action is commenced and remains a member <br/>
<a id="pl.57.14"></a><var>57.14</var>while the action continues.<br/>
<a id="pl.57.15"></a><var>57.15</var>    Subd. 2. <b>Effect of plaintiff death.</b> If the sole plaintiff in a derivative action dies <br/>
<a id="pl.57.16"></a><var>57.16</var>while the action is pending, the court may permit another member of the limited liability <br/>
<a id="pl.57.17"></a><var>57.17</var>company to be substituted as plaintiff.<br/>
<br/>
<a id="bill.1.67.0"></a><a id="pl.57.18"></a><var>57.18</var>    Sec. 67. <b>[322C.0904] PLEADING.</b><br/>
<a id="pl.57.19"></a><var>57.19</var>In a derivative action under section 322C.0902, the complaint must state with <br/>
<a id="pl.57.20"></a><var>57.20</var>particularity:<br/>
<a id="pl.57.21"></a><var>57.21</var>(1) the date and content of the plaintiff's demand and the response to the demand by <br/>
<a id="pl.57.22"></a><var>57.22</var>the other members, managers, or board of governors; or<br/>
<a id="pl.57.23"></a><var>57.23</var>(2) if a demand has not been made, the reasons a demand under section 322C.0902, <br/>
<a id="pl.57.24"></a><var>57.24</var>clause (1), would be futile.<br/>
<br/>
<a id="bill.1.68.0"></a><a id="pl.57.25"></a><var>57.25</var>    Sec. 68. <b>[322C.0905] SPECIAL LITIGATION COMMITTEE.</b><br/>
<a id="pl.57.26"></a><var>57.26</var>    Subdivision 1. <b>Committee authorization.</b> If a limited liability company is named <br/>
<a id="pl.57.27"></a><var>57.27</var>as or made a party in a derivative proceeding, the company may appoint a special <br/>
<a id="pl.57.28"></a><var>57.28</var>litigation committee to investigate the claims asserted in the proceeding and determine <br/>
<a id="pl.57.29"></a><var>57.29</var>whether pursuing the action is in the best interests of the company. If the company <br/>
<a id="pl.57.30"></a><var>57.30</var>appoints a special litigation committee, on motion by the committee made in the name <br/>
<a id="pl.57.31"></a><var>57.31</var>of the company, except for good cause shown, the court shall stay discovery for the time <br/>
<a id="pl.57.32"></a><var>57.32</var>reasonably necessary to permit the committee to make its investigation. This subdivision <br/>
<a id="pl.57.33"></a><var>57.33</var>does not prevent the court from enforcing a person's right to information under section <br/>
<a id="pl.58.1"></a><var>58.1</var>322C.0410 or, for good cause shown, granting extraordinary relief in the form of a <br/>
<a id="pl.58.2"></a><var>58.2</var>temporary restraining order or preliminary injunction.<br/>
<a id="pl.58.3"></a><var>58.3</var>    Subd. 2. <b>Committee composition.</b> A special litigation committee may be composed <br/>
<a id="pl.58.4"></a><var>58.4</var>of one or more disinterested and independent individuals, who may be members.<br/>
<a id="pl.58.5"></a><var>58.5</var>    Subd. 3. <b>Requirements for appointment of committee.</b> A special litigation <br/>
<a id="pl.58.6"></a><var>58.6</var>committee may be appointed:<br/>
<a id="pl.58.7"></a><var>58.7</var>(1) in a member-managed limited liability company:<br/>
<a id="pl.58.8"></a><var>58.8</var>(i) by the consent of a majority of the members not named as defendants or plaintiffs <br/>
<a id="pl.58.9"></a><var>58.9</var>in the proceeding; and<br/>
<a id="pl.58.10"></a><var>58.10</var>(ii) if all members are named as defendants or plaintiffs in the proceeding, by a <br/>
<a id="pl.58.11"></a><var>58.11</var>majority of the members named as defendants;<br/>
<a id="pl.58.12"></a><var>58.12</var>(2) in a manager-managed limited liability company:<br/>
<a id="pl.58.13"></a><var>58.13</var>(i) by a majority of the managers not named as defendants or plaintiffs in the <br/>
<a id="pl.58.14"></a><var>58.14</var>proceeding; and<br/>
<a id="pl.58.15"></a><var>58.15</var>(ii) if all managers are named as defendants or plaintiffs in the proceeding, by a <br/>
<a id="pl.58.16"></a><var>58.16</var>majority of the managers named as defendants; and<br/>
<a id="pl.58.17"></a><var>58.17</var>(3) in a board-managed limited liability company:<br/>
<a id="pl.58.18"></a><var>58.18</var>(i) by a majority of governors not named as defendants or plaintiffs in the <br/>
<a id="pl.58.19"></a><var>58.19</var>proceeding; and<br/>
<a id="pl.58.20"></a><var>58.20</var>(ii) if all governors are named as defendants or plaintiffs in the proceeding, by a <br/>
<a id="pl.58.21"></a><var>58.21</var>majority of the governors named as defendants.<br/>
<a id="pl.58.22"></a><var>58.22</var>    Subd. 4. <b>Determinations of committee.</b> After appropriate investigation, a special <br/>
<a id="pl.58.23"></a><var>58.23</var>litigation committee may determine that it is in the best interests of the limited liability <br/>
<a id="pl.58.24"></a><var>58.24</var>company that the proceeding:<br/>
<a id="pl.58.25"></a><var>58.25</var>(1) continue under the control of the plaintiff;<br/>
<a id="pl.58.26"></a><var>58.26</var>(2) continue under the control of the committee;<br/>
<a id="pl.58.27"></a><var>58.27</var>(3) be settled on terms approved by the committee; or<br/>
<a id="pl.58.28"></a><var>58.28</var>(4) be dismissed.<br/>
<a id="pl.58.29"></a><var>58.29</var>    Subd. 5. <b>Committee procedures.</b> After making a determination under subdivision <br/>
<a id="pl.58.30"></a><var>58.30</var>4, a special litigation committee shall file with the court a statement of its determination <br/>
<a id="pl.58.31"></a><var>58.31</var>and its report supporting its determination, giving notice to the plaintiff. The court shall <br/>
<a id="pl.58.32"></a><var>58.32</var>determine whether the members of the committee were disinterested and independent <br/>
<a id="pl.58.33"></a><var>58.33</var>and whether the committee conducted its investigation and made its recommendation <br/>
<a id="pl.58.34"></a><var>58.34</var>in good faith, independently, and with reasonable care, with the committee having the <br/>
<a id="pl.58.35"></a><var>58.35</var>burden of proof. If the court finds that the members of the committee were disinterested <br/>
<a id="pl.58.36"></a><var>58.36</var>and independent and that the committee acted in good faith, independently, and with <br/>
<a id="pl.59.1"></a><var>59.1</var>reasonable care, the court shall enforce the determination of the committee. Otherwise, <br/>
<a id="pl.59.2"></a><var>59.2</var>the court shall dissolve the stay of discovery entered under subdivision 1 and allow the <br/>
<a id="pl.59.3"></a><var>59.3</var>action to proceed under the direction of the plaintiff.<br/>
<br/>
<a id="bill.1.69.0"></a><a id="pl.59.4"></a><var>59.4</var>    Sec. 69. <b>[322C.0906] PROCEEDS AND EXPENSES.</b><br/>
<a id="pl.59.5"></a><var>59.5</var>    Subdivision 1. <b>Ownership of proceeds.</b> Except as otherwise provided in <br/>
<a id="pl.59.6"></a><var>59.6</var>subdivision 2:<br/>
<a id="pl.59.7"></a><var>59.7</var>(1) any proceeds or other benefits of a derivative action under section 322C.0902, <br/>
<a id="pl.59.8"></a><var>59.8</var>whether by judgment, compromise, or settlement, belong to the limited liability company <br/>
<a id="pl.59.9"></a><var>59.9</var>and not to the plaintiff; and<br/>
<a id="pl.59.10"></a><var>59.10</var>(2) if the plaintiff receives any proceeds, the plaintiff shall remit them immediately <br/>
<a id="pl.59.11"></a><var>59.11</var>to the company.<br/>
<a id="pl.59.12"></a><var>59.12</var>    Subd. 2. <b>Expenses awarded.</b> If a derivative action under section 322C.0902 is <br/>
<a id="pl.59.13"></a><var>59.13</var>successful in whole or in part, the court may award the plaintiff reasonable expenses, <br/>
<a id="pl.59.14"></a><var>59.14</var>including reasonable attorney fees and costs, from the recovery of the limited liability <br/>
<a id="pl.59.15"></a><var>59.15</var>company.<br/>

<a id="bill.1.70.0"></a><a id="pl.59.17"></a><var>59.17</var>    Sec. 70. <b>[322C.1001] DEFINITIONS.</b><br/>
<a id="pl.59.18"></a><var>59.18</var>    Subdivision 1. <b>Scope.</b> For the purposes of sections 322C.1001 to 322C.1015, the <br/>
<a id="pl.59.19"></a><var>59.19</var>terms defined in this section have the meanings given them.<br/>
<a id="pl.59.20"></a><var>59.20</var>    Subd. 2. <b>Constituent limited liability company.</b> "Constituent limited liability <br/>
<a id="pl.59.21"></a><var>59.21</var>company" means a constituent organization that is a limited liability company.<br/>
<a id="pl.59.22"></a><var>59.22</var>    Subd. 3. <b>Constituent organization.</b> "Constituent organization" means an <br/>
<a id="pl.59.23"></a><var>59.23</var>organization that is party to a merger or exchange.<br/>
<a id="pl.59.24"></a><var>59.24</var>    Subd. 4. <b>Converted organization.</b> "Converted organization" means the <br/>
<a id="pl.59.25"></a><var>59.25</var>organization into which a converting organization converts pursuant to sections 322C.1007 <br/>
<a id="pl.59.26"></a><var>59.26</var>to 322C.1010.<br/>
<a id="pl.59.27"></a><var>59.27</var>    Subd. 5. <b>Converting limited liability company.</b> "Converting limited liability <br/>
<a id="pl.59.28"></a><var>59.28</var>company" means a converting organization that is a limited liability company.<br/>
<a id="pl.59.29"></a><var>59.29</var>    Subd. 6. <b>Converting organization.</b> "Converting organization" means an <br/>
<a id="pl.59.30"></a><var>59.30</var>organization that converts into another organization pursuant to section 322C.1007.<br/>
<a id="pl.59.31"></a><var>59.31</var>    Subd. 7. <b>Domesticated company.</b> "Domesticated company" means the company <br/>
<a id="pl.59.32"></a><var>59.32</var>that exists after a domesticating foreign limited liability company or limited liability <br/>
<a id="pl.59.33"></a><var>59.33</var>company effects a domestication pursuant to sections 322C.1011 to 322C.1014.<br/>
<a id="pl.60.1"></a><var>60.1</var>    Subd. 8. <b>Domesticating company.</b> "Domesticating company" means the company <br/>
<a id="pl.60.2"></a><var>60.2</var>that effects a domestication pursuant to sections 322C.1011 to 322C.1014.<br/>
<a id="pl.60.3"></a><var>60.3</var>    Subd. 9. <b>Governing statute.</b> "Governing statute" means the statute that governs <br/>
<a id="pl.60.4"></a><var>60.4</var>an organization's internal affairs.<br/>
<a id="pl.60.5"></a><var>60.5</var>    Subd. 10. <b>Organization.</b> "Organization" means a general partnership, including <br/>
<a id="pl.60.6"></a><var>60.6</var>a limited liability partnership, limited partnership, including a limited liability limited <br/>
<a id="pl.60.7"></a><var>60.7</var>partnership, limited liability company, business trust, corporation, or any other person <br/>
<a id="pl.60.8"></a><var>60.8</var>having a governing statute. The term includes a domestic or foreign organization <br/>
<a id="pl.60.9"></a><var>60.9</var>regardless of whether organized for profit.<br/>
<a id="pl.60.10"></a><var>60.10</var>    Subd. 11. <b>Organizational documents.</b> "Organizational documents" means:<br/>
<a id="pl.60.11"></a><var>60.11</var>(1) for a domestic or foreign general partnership, its partnership agreement;<br/>
<a id="pl.60.12"></a><var>60.12</var>(2) for a limited partnership or foreign limited partnership, its certificate of limited <br/>
<a id="pl.60.13"></a><var>60.13</var>partnership and partnership agreement;<br/>
<a id="pl.60.14"></a><var>60.14</var>(3) for a domestic or foreign limited liability company, its certificate or articles of <br/>
<a id="pl.60.15"></a><var>60.15</var>organization and operating agreement, or comparable records as provided in its governing <br/>
<a id="pl.60.16"></a><var>60.16</var>statute;<br/>
<a id="pl.60.17"></a><var>60.17</var>(4) for a business trust, its agreement of trust and declaration of trust;<br/>
<a id="pl.60.18"></a><var>60.18</var>(5) for a domestic or foreign corporation for profit, its articles of incorporation, <br/>
<a id="pl.60.19"></a><var>60.19</var>bylaws, and other agreements among its shareholders which are authorized by its <br/>
<a id="pl.60.20"></a><var>60.20</var>governing statute, or comparable records as provided in its governing statute; and<br/>
<a id="pl.60.21"></a><var>60.21</var>(6) for any other organization, the basic records that create the organization and <br/>
<a id="pl.60.22"></a><var>60.22</var>determine its internal governance and the relations among the persons that own it, have an <br/>
<a id="pl.60.23"></a><var>60.23</var>interest in it, or are members of it.<br/>
<a id="pl.60.24"></a><var>60.24</var>    Subd. 12. <b>Personal liability.</b> "Personal liability" means liability for a debt, <br/>
<a id="pl.60.25"></a><var>60.25</var>obligation, or other liability of an organization which is imposed on a person that co-owns, <br/>
<a id="pl.60.26"></a><var>60.26</var>has an interest in, or is a member of the organization:<br/>
<a id="pl.60.27"></a><var>60.27</var>(1) by the governing statute solely by reason of the person co-owning, having an <br/>
<a id="pl.60.28"></a><var>60.28</var>interest in, or being a member of the organization; or<br/>
<a id="pl.60.29"></a><var>60.29</var>(2) by the organization's organizational documents under a provision of the governing <br/>
<a id="pl.60.30"></a><var>60.30</var>statute authorizing those documents to make one or more specified persons liable for all or <br/>
<a id="pl.60.31"></a><var>60.31</var>specified debts, obligations, or other liabilities of the organization solely by reason of the <br/>
<a id="pl.60.32"></a><var>60.32</var>person or persons co-owning, having an interest in, or being a member of the organization.<br/>
<a id="pl.60.33"></a><var>60.33</var>    Subd. 13. <b>Surviving organization.</b> "Surviving organization" means an organization <br/>
<a id="pl.60.34"></a><var>60.34</var>into which one or more other organizations are merged whether the organization preexisted <br/>
<a id="pl.60.35"></a><var>60.35</var>the merger or was created by the merger.<br/>
<br/>
<a id="bill.1.71.0"></a><a id="pl.61.1"></a><var>61.1</var>    Sec. 71. <b>[322C.1002] MERGER; EXCHANGE.</b><br/>
<a id="pl.61.2"></a><var>61.2</var>    Subdivision 1. <b>Prerequisites for merger.</b> A limited liability company may merge <br/>
<a id="pl.61.3"></a><var>61.3</var>with one or more other constituent organizations pursuant to this section, sections <br/>
<a id="pl.61.4"></a><var>61.4</var>322C.1003 to 322C.1005, and a plan of merger if:<br/>
<a id="pl.61.5"></a><var>61.5</var>(1) the governing statute of each of the other organizations authorizes the merger;<br/>
<a id="pl.61.6"></a><var>61.6</var>(2) the merger is not prohibited by the law of a jurisdiction that enacted any of the <br/>
<a id="pl.61.7"></a><var>61.7</var>governing statutes; and<br/>
<a id="pl.61.8"></a><var>61.8</var>(3) each of the other organizations complies with its governing statute in effecting <br/>
<a id="pl.61.9"></a><var>61.9</var>the merger.<br/>
<a id="pl.61.10"></a><var>61.10</var>    Subd. 2. <b>Prerequisites for exchange.</b> A limited liability company may engage in <br/>
<a id="pl.61.11"></a><var>61.11</var>an exchange with one or more other constituent organizations pursuant to this section by <br/>
<a id="pl.61.12"></a><var>61.12</var>which one of the constituent organizations acquires all of the ownership interests of one or <br/>
<a id="pl.61.13"></a><var>61.13</var>more classes or series of another constituent organization pursuant to this section, sections <br/>
<a id="pl.61.14"></a><var>61.14</var>322C.1003 to 322C.1005, and a plan of exchange if:<br/>
<a id="pl.61.15"></a><var>61.15</var>(1) the governing statute of each of the other constituent organizations authorizes <br/>
<a id="pl.61.16"></a><var>61.16</var>the exchange;<br/>
<a id="pl.61.17"></a><var>61.17</var>(2) the exchange is not prohibited by the law of a jurisdiction that enacted any of the <br/>
<a id="pl.61.18"></a><var>61.18</var>governing statutes; and<br/>
<a id="pl.61.19"></a><var>61.19</var>(3) each of the other constituent organizations complies with its governing statute in <br/>
<a id="pl.61.20"></a><var>61.20</var>effecting the exchange.<br/>
<a id="pl.61.21"></a><var>61.21</var>    Subd. 3. <b>Plan of merger or exchange.</b> A plan of merger or exchange must be in a <br/>
<a id="pl.61.22"></a><var>61.22</var>record and must include:<br/>
<a id="pl.61.23"></a><var>61.23</var>(1) the name and form of each constituent organization and:<br/>
<a id="pl.61.24"></a><var>61.24</var>(i) in the case of a merger, the name and form of the surviving organization and, if <br/>
<a id="pl.61.25"></a><var>61.25</var>the surviving organization is to be created by the merger, a statement to that effect; and<br/>
<a id="pl.61.26"></a><var>61.26</var>(ii) in the case of an exchange, the name of the acquiring organization;<br/>
<a id="pl.61.27"></a><var>61.27</var>(2)(i) in the case of a merger, the terms and conditions of the merger, including the <br/>
<a id="pl.61.28"></a><var>61.28</var>manner and basis for converting the interests in each constituent organization into any <br/>
<a id="pl.61.29"></a><var>61.29</var>combination of money, interests in the surviving organization, and other consideration; and<br/>
<a id="pl.61.30"></a><var>61.30</var>(ii) in the case of an exchange, the terms and conditions of the exchange, including <br/>
<a id="pl.61.31"></a><var>61.31</var>the manner and basis of exchanging the ownership interests to be acquired for securities <br/>
<a id="pl.61.32"></a><var>61.32</var>of, or other ownership interests in, the acquiring organization or any other organization or, <br/>
<a id="pl.61.33"></a><var>61.33</var>in whole or part, for money or other property;<br/>
<a id="pl.61.34"></a><var>61.34</var>(3) in the case of a merger, if the surviving organization is to be created by the merger, <br/>
<a id="pl.61.35"></a><var>61.35</var>the surviving organization's organizational documents that are proposed to be in a record;<br/>
<a id="pl.62.1"></a><var>62.1</var>(4) in the case of a merger, if the surviving organization is not to be created by <br/>
<a id="pl.62.2"></a><var>62.2</var>the merger, any amendments to be made by the merger to the surviving organization's <br/>
<a id="pl.62.3"></a><var>62.3</var>organizational documents that are, or are proposed to be, in a record; and<br/>
<a id="pl.62.4"></a><var>62.4</var>(5) any other provisions with respect to the proposed merger or exchange that are <br/>
<a id="pl.62.5"></a><var>62.5</var>considered necessary or desirable.<br/>
<br/>
<a id="bill.1.72.0"></a><a id="pl.62.6"></a><var>62.6</var>    Sec. 72. <b>[322C.1003] ACTION ON PLAN OF MERGER OR EXCHANGE BY </b><br/>
<a id="pl.62.7"></a><var>62.7</var><b>CONSTITUENT LIMITED LIABILITY COMPANY.</b><br/>
<a id="pl.62.8"></a><var>62.8</var>    Subdivision 1. <b>Member consent required.</b> Subject to section 322C.1015, a plan <br/>
<a id="pl.62.9"></a><var>62.9</var>of merger or exchange must be consented to by all the members of a constituent limited <br/>
<a id="pl.62.10"></a><var>62.10</var>liability company.<br/>
<a id="pl.62.11"></a><var>62.11</var>    Subd. 2. <b>Amendment of plan or abandonment of merger or exchange.</b> Subject to <br/>
<a id="pl.62.12"></a><var>62.12</var>section 322C.1015 and any contractual rights, after a merger or exchange is approved, and <br/>
<a id="pl.62.13"></a><var>62.13</var>at any time before the merger or exchange becomes effective according to this chapter, <br/>
<a id="pl.62.14"></a><var>62.14</var>a constituent limited liability company may amend the plan or abandon the merger or <br/>
<a id="pl.62.15"></a><var>62.15</var>exchange:<br/>
<a id="pl.62.16"></a><var>62.16</var>(1) as provided in the plan; or<br/>
<a id="pl.62.17"></a><var>62.17</var>(2) except as otherwise prohibited in the plan, with the same consent as was required <br/>
<a id="pl.62.18"></a><var>62.18</var>to approve the plan.<br/>
<br/>
<a id="bill.1.73.0"></a><a id="pl.62.19"></a><var>62.19</var>    Sec. 73. <b>[322C.1004] FILINGS REQUIRED FOR MERGER OR EXCHANGE; </b><br/>
<a id="pl.62.20"></a><var>62.20</var><b>EFFECTIVE DATE AND TIME.</b><br/>
<a id="pl.62.21"></a><var>62.21</var>    Subdivision 1. <b>Articles of merger or exchange.</b> After each constituent organization <br/>
<a id="pl.62.22"></a><var>62.22</var>has approved a merger or exchange, articles of merger or exchange must be signed on <br/>
<a id="pl.62.23"></a><var>62.23</var>behalf of:<br/>
<a id="pl.62.24"></a><var>62.24</var>(1) each constituent limited liability company, as provided in section 322C.0203, <br/>
<a id="pl.62.25"></a><var>62.25</var>subdivision 1; and<br/>
<a id="pl.62.26"></a><var>62.26</var>(2) each other constituent organization, as provided in its governing statute.<br/>
<a id="pl.62.27"></a><var>62.27</var>    Subd. 2. <b>Contents of articles of merger.</b> Articles of merger under this section <br/>
<a id="pl.62.28"></a><var>62.28</var>must include:<br/>
<a id="pl.62.29"></a><var>62.29</var>(1) the name and form of each constituent organization and the jurisdiction of its <br/>
<a id="pl.62.30"></a><var>62.30</var>governing statute;<br/>
<a id="pl.62.31"></a><var>62.31</var>(2) the name and form of the surviving organization, the jurisdiction of its governing <br/>
<a id="pl.62.32"></a><var>62.32</var>statute, and, if the surviving organization is created by the merger, a statement to that effect;<br/>
<a id="pl.62.33"></a><var>62.33</var>(3) the date the merger is effective under the governing statute of the surviving <br/>
<a id="pl.62.34"></a><var>62.34</var>organization;<br/>
<a id="pl.63.1"></a><var>63.1</var>(4) if the surviving organization is to be created by the merger:<br/>
<a id="pl.63.2"></a><var>63.2</var>(i) if it will be a limited liability company, the company's articles of organization; or<br/>
<a id="pl.63.3"></a><var>63.3</var>(ii) if it will be an organization other than a limited liability company, the <br/>
<a id="pl.63.4"></a><var>63.4</var>organizational document that creates the organization that is in a public record;<br/>
<a id="pl.63.5"></a><var>63.5</var>(5) if the surviving organization preexists the merger, any amendments provided <br/>
<a id="pl.63.6"></a><var>63.6</var>for in the plan of merger for the organizational document that created the organization <br/>
<a id="pl.63.7"></a><var>63.7</var>that are in a public record;<br/>
<a id="pl.63.8"></a><var>63.8</var>(6) a statement as to each constituent organization that the merger was approved as <br/>
<a id="pl.63.9"></a><var>63.9</var>required by the organization's governing statute;<br/>
<a id="pl.63.10"></a><var>63.10</var>(7) if the surviving organization is a foreign organization not authorized to transact <br/>
<a id="pl.63.11"></a><var>63.11</var>business in this state, the street address of an office that the secretary of state may use for <br/>
<a id="pl.63.12"></a><var>63.12</var>the purposes of section 322C.1005, subdivision 2; and<br/>
<a id="pl.63.13"></a><var>63.13</var>(8) any additional information required by the governing statute of any constituent <br/>
<a id="pl.63.14"></a><var>63.14</var>organization.<br/>
<a id="pl.63.15"></a><var>63.15</var>    Subd. 3. <b>Contents of articles of exchange.</b> Articles of exchange under this section <br/>
<a id="pl.63.16"></a><var>63.16</var>must include:<br/>
<a id="pl.63.17"></a><var>63.17</var>(1) the name and form of each constituent organization and the jurisdiction of its <br/>
<a id="pl.63.18"></a><var>63.18</var>governing statute;<br/>
<a id="pl.63.19"></a><var>63.19</var>(2) the manner and basis of exchanging the ownership interests to be acquired for <br/>
<a id="pl.63.20"></a><var>63.20</var>securities of, or other ownership interests in, the acquiring organization or any other <br/>
<a id="pl.63.21"></a><var>63.21</var>organization or, in whole or part, for money or other property;<br/>
<a id="pl.63.22"></a><var>63.22</var>(3) the date the exchange is effective under the governing statute of the acquiring <br/>
<a id="pl.63.23"></a><var>63.23</var>organization;<br/>
<a id="pl.63.24"></a><var>63.24</var>(4) a statement as to each constituent organization that the exchange was approved <br/>
<a id="pl.63.25"></a><var>63.25</var>as required by the organization's governing statute; and<br/>
<a id="pl.63.26"></a><var>63.26</var>(5) any additional information required by the governing statute of any constituent <br/>
<a id="pl.63.27"></a><var>63.27</var>organization.<br/>
<a id="pl.63.28"></a><var>63.28</var>    Subd. 4. <b>Delivery of articles of merger or exchange.</b> Each constituent limited <br/>
<a id="pl.63.29"></a><var>63.29</var>liability company shall file the articles of merger, together with a total fee of $60, with the <br/>
<a id="pl.63.30"></a><var>63.30</var>Office of the Secretary of State.<br/>
<a id="pl.63.31"></a><var>63.31</var>    Subd. 5. <b>Effective date and time of merger or exchange.</b> (a) A merger becomes <br/>
<a id="pl.63.32"></a><var>63.32</var>effective under sections 322C.1001 to 322C.1015:<br/>
<a id="pl.63.33"></a><var>63.33</var>(1) if the surviving organization is a limited liability company, upon the later of:<br/>
<a id="pl.63.34"></a><var>63.34</var>(i) compliance with subdivision 4; or<br/>
<a id="pl.63.35"></a><var>63.35</var>(ii) subject to section 322C.0205, subdivision 3, such effective time as is specified in <br/>
<a id="pl.63.36"></a><var>63.36</var>the articles of merger; or<br/>
<a id="pl.64.1"></a><var>64.1</var>(2) if the surviving organization is not a limited liability company, as provided by <br/>
<a id="pl.64.2"></a><var>64.2</var>the governing statute of the surviving organization.<br/>
<a id="pl.64.3"></a><var>64.3</var>(b) An exchange becomes effective under sections 322C.1001 to 322C.1015 upon <br/>
<a id="pl.64.4"></a><var>64.4</var>the later of:<br/>
<a id="pl.64.5"></a><var>64.5</var>(1) compliance with subdivision 4; or<br/>
<a id="pl.64.6"></a><var>64.6</var>(2) subject to section 322C.0205, subdivision 3, such effective time as is specified in <br/>
<a id="pl.64.7"></a><var>64.7</var>the articles of exchange.<br/>
<br/>
<a id="bill.1.74.0"></a><a id="pl.64.8"></a><var>64.8</var>    Sec. 74. <b>[322C.1005] EFFECT OF MERGER.</b><br/>
<a id="pl.64.9"></a><var>64.9</var>    Subdivision 1. <b>Effect on constituent organizations.</b> When a merger becomes <br/>
<a id="pl.64.10"></a><var>64.10</var>effective:<br/>
<a id="pl.64.11"></a><var>64.11</var>(1) the surviving organization continues or comes into existence;<br/>
<a id="pl.64.12"></a><var>64.12</var>(2) each constituent organization that merges into the surviving organization ceases <br/>
<a id="pl.64.13"></a><var>64.13</var>to exist as a separate entity;<br/>
<a id="pl.64.14"></a><var>64.14</var>(3) all property owned by each constituent organization that ceases to exist vests in <br/>
<a id="pl.64.15"></a><var>64.15</var>the surviving organization;<br/>
<a id="pl.64.16"></a><var>64.16</var>(4) all debts, obligations, or other liabilities of each constituent organization <br/>
<a id="pl.64.17"></a><var>64.17</var>that ceases to exist continue as debts, obligations, or other liabilities of the surviving <br/>
<a id="pl.64.18"></a><var>64.18</var>organization;<br/>
<a id="pl.64.19"></a><var>64.19</var>(5) an action or proceeding pending by or against any constituent organization that <br/>
<a id="pl.64.20"></a><var>64.20</var>ceases to exist may be continued as if the merger had not occurred;<br/>
<a id="pl.64.21"></a><var>64.21</var>(6) except as prohibited by other law, all of the rights, privileges, immunities, <br/>
<a id="pl.64.22"></a><var>64.22</var>powers, and purposes of each constituent organization that ceases to exist vest in the <br/>
<a id="pl.64.23"></a><var>64.23</var>surviving organization;<br/>
<a id="pl.64.24"></a><var>64.24</var>(7) except as otherwise provided in the plan of merger, the terms and conditions <br/>
<a id="pl.64.25"></a><var>64.25</var>of the plan of merger take effect;<br/>
<a id="pl.64.26"></a><var>64.26</var>(8) except as otherwise agreed, if a constituent limited liability company ceases <br/>
<a id="pl.64.27"></a><var>64.27</var>to exist, the merger does not dissolve the limited liability company for the purposes of <br/>
<a id="pl.64.28"></a><var>64.28</var>sections 322C.0701 to 322C.0707;<br/>
<a id="pl.64.29"></a><var>64.29</var>(9) if the surviving organization is created by the merger:<br/>
<a id="pl.64.30"></a><var>64.30</var>(i) if it is a limited liability company, the articles of organization become effective; or<br/>
<a id="pl.64.31"></a><var>64.31</var>(ii) if it is an organization other than a limited liability company, the organizational <br/>
<a id="pl.64.32"></a><var>64.32</var>document that creates the organization becomes effective; and<br/>
<a id="pl.64.33"></a><var>64.33</var>(10) if the surviving organization preexisted the merger, any amendments provided <br/>
<a id="pl.64.34"></a><var>64.34</var>for in the articles of merger or the organizational document that created the organization <br/>
<a id="pl.64.35"></a><var>64.35</var>become effective.<br/>
<a id="pl.65.1"></a><var>65.1</var>    Subd. 2. <b>Foreign organization.</b> A surviving organization that is a foreign <br/>
<a id="pl.65.2"></a><var>65.2</var>organization consents to the jurisdiction of the courts of this state to enforce any debt, <br/>
<a id="pl.65.3"></a><var>65.3</var>obligation, or other liability owed by a constituent organization if before the merger the <br/>
<a id="pl.65.4"></a><var>65.4</var>constituent organization was subject to suit in this state on the debt, obligation, or other <br/>
<a id="pl.65.5"></a><var>65.5</var>liability. A surviving organization that is a foreign organization and not authorized <br/>
<a id="pl.65.6"></a><var>65.6</var>to transact business in this state appoints the secretary of state as its agent for service <br/>
<a id="pl.65.7"></a><var>65.7</var>of process for the purposes of enforcing a debt, obligation, or other liability under this <br/>
<a id="pl.65.8"></a><var>65.8</var>subdivision. Service on the secretary of state under this subdivision must be made in the <br/>
<a id="pl.65.9"></a><var>65.9</var>same manner and has the same consequences as in section 322C.0116, subdivisions 3 and 4.<br/>
<br/>
<a id="bill.1.75.0"></a><a id="pl.65.10"></a><var>65.10</var>    Sec. 75. <b>[322C.1006] EFFECT OF EXCHANGE.</b><br/>
<a id="pl.65.11"></a><var>65.11</var>When an exchange becomes effective, the membership interests in a limited liability <br/>
<a id="pl.65.12"></a><var>65.12</var>company to be exchanged under the terms of the plan are considered to be exchanged. <br/>
<a id="pl.65.13"></a><var>65.13</var>The members owning those membership interests are entitled only to the ownership <br/>
<a id="pl.65.14"></a><var>65.14</var>interests, securities, money, or other property into which those membership interests have <br/>
<a id="pl.65.15"></a><var>65.15</var>been converted or for which those membership interests have been exchanged according <br/>
<a id="pl.65.16"></a><var>65.16</var>to the plan.<br/>
<br/>
<a id="bill.1.76.0"></a><a id="pl.65.17"></a><var>65.17</var>    Sec. 76. <b>[322C.1007] CONVERSION.</b><br/>
<a id="pl.65.18"></a><var>65.18</var>    Subdivision 1. <b>Conversion requirements.</b> An organization other than a limited <br/>
<a id="pl.65.19"></a><var>65.19</var>liability company, a foreign limited liability company, a nonprofit corporation, or an <br/>
<a id="pl.65.20"></a><var>65.20</var>organization owning assets irrevocably dedicated to a charitable purpose, may convert <br/>
<a id="pl.65.21"></a><var>65.21</var>to a limited liability company other than a nonprofit limited liability company, and a <br/>
<a id="pl.65.22"></a><var>65.22</var>limited liability company other than a nonprofit limited liability company may convert to <br/>
<a id="pl.65.23"></a><var>65.23</var>an organization other than a foreign limited liability company pursuant to this section, <br/>
<a id="pl.65.24"></a><var>65.24</var>sections 322C.1008 to 322C.1010, and a plan of conversion if:<br/>
<a id="pl.65.25"></a><var>65.25</var>(1) the other organization's governing statute authorizes the conversion;<br/>
<a id="pl.65.26"></a><var>65.26</var>(2) the conversion is not prohibited by the law of the jurisdiction that enacted the <br/>
<a id="pl.65.27"></a><var>65.27</var>other organization's governing statute or other law of this state; and<br/>
<a id="pl.65.28"></a><var>65.28</var>(3) the other organization complies with its governing statute in effecting the <br/>
<a id="pl.65.29"></a><var>65.29</var>conversion.<br/>
<a id="pl.65.30"></a><var>65.30</var>    Subd. 2. <b>Contents of plan of conversion.</b> A plan of conversion must be in a record <br/>
<a id="pl.65.31"></a><var>65.31</var>and must include:<br/>
<a id="pl.65.32"></a><var>65.32</var>(1) the name and form of the organization before conversion;<br/>
<a id="pl.65.33"></a><var>65.33</var>(2) the name and form of the organization after conversion;<br/>
<a id="pl.66.1"></a><var>66.1</var>(3) the terms and conditions of the conversion, including the manner and basis <br/>
<a id="pl.66.2"></a><var>66.2</var>for converting interests in the converting organization into any combination of money, <br/>
<a id="pl.66.3"></a><var>66.3</var>interests in the converted organization, and other consideration; and<br/>
<a id="pl.66.4"></a><var>66.4</var>(4) the organizational documents of the converted organization that are, or are <br/>
<a id="pl.66.5"></a><var>66.5</var>proposed to be, in a record.<br/>
<br/>
<a id="bill.1.77.0"></a><a id="pl.66.6"></a><var>66.6</var>    Sec. 77. <b>[322C.1008] ACTION ON PLAN OF CONVERSION BY CONVERTING </b><br/>
<a id="pl.66.7"></a><var>66.7</var><b>LIMITED LIABILITY COMPANY.</b><br/>
<a id="pl.66.8"></a><var>66.8</var>    Subdivision 1. <b>Member consent required.</b> Subject to section 322C.1015, a plan <br/>
<a id="pl.66.9"></a><var>66.9</var>of conversion must be consented to by all the members of a converting limited liability <br/>
<a id="pl.66.10"></a><var>66.10</var>company.<br/>
<a id="pl.66.11"></a><var>66.11</var>    Subd. 2. <b>Amendment of plan or abandonment of conversion.</b> Subject to section <br/>
<a id="pl.66.12"></a><var>66.12</var>322C.1015 and any contractual rights, after a conversion is approved, and at any time <br/>
<a id="pl.66.13"></a><var>66.13</var>before articles of conversion are delivered to the secretary of state for filing under section <br/>
<a id="pl.66.14"></a><var>66.14</var>322C.1009, a converting limited liability company may amend the plan or abandon the <br/>
<a id="pl.66.15"></a><var>66.15</var>conversion:<br/>
<a id="pl.66.16"></a><var>66.16</var>(1) as provided in the plan; or<br/>
<a id="pl.66.17"></a><var>66.17</var>(2) except as otherwise prohibited in the plan, by the same consent as was required <br/>
<a id="pl.66.18"></a><var>66.18</var>to approve the plan.<br/>
<br/>
<a id="bill.1.78.0"></a><a id="pl.66.19"></a><var>66.19</var>    Sec. 78. <b>[322C.1009] FILINGS REQUIRED FOR CONVERSION; EFFECTIVE </b><br/>
<a id="pl.66.20"></a><var>66.20</var><b>DATE AND TIME.</b><br/>
<a id="pl.66.21"></a><var>66.21</var>    Subdivision 1. <b>Articles of conversion.</b> After a plan of conversion is approved:<br/>
<a id="pl.66.22"></a><var>66.22</var>(1) a converting limited liability company shall file articles of conversion with the <br/>
<a id="pl.66.23"></a><var>66.23</var>secretary of state, together with a total fee of $60, which articles of conversion must be <br/>
<a id="pl.66.24"></a><var>66.24</var>signed as provided in section 322C.0203, subdivision 1, and must include:<br/>
<a id="pl.66.25"></a><var>66.25</var>(i) a statement that the limited liability company has been converted into another <br/>
<a id="pl.66.26"></a><var>66.26</var>organization;<br/>
<a id="pl.66.27"></a><var>66.27</var>(ii) the name and form of the organization and the jurisdiction of its governing statute;<br/>
<a id="pl.66.28"></a><var>66.28</var>(iii) the time the conversion is effective under the governing statute of the converted <br/>
<a id="pl.66.29"></a><var>66.29</var>organization;<br/>
<a id="pl.66.30"></a><var>66.30</var>(iv) a statement that the conversion was approved as required by this chapter;<br/>
<a id="pl.66.31"></a><var>66.31</var>(v) a statement that the conversion was approved as required by the governing <br/>
<a id="pl.66.32"></a><var>66.32</var>statute of the converted organization; and<br/>
<a id="pl.67.1"></a><var>67.1</var>(vi) if the converted organization is a foreign organization not authorized to transact <br/>
<a id="pl.67.2"></a><var>67.2</var>business in this state, the street address of an office that the secretary of state may use for <br/>
<a id="pl.67.3"></a><var>67.3</var>the purposes of section 322C.1010, subdivision 3; and<br/>
<a id="pl.67.4"></a><var>67.4</var>(2) if the converting organization is not a converting limited liability company, the <br/>
<a id="pl.67.5"></a><var>67.5</var>converting organization shall file with the secretary of state articles of organization, which <br/>
<a id="pl.67.6"></a><var>67.6</var>must include, in addition to the information required by section 322C.0201, subdivision 2:<br/>
<a id="pl.67.7"></a><var>67.7</var>(i) a statement that the converted organization was converted from another <br/>
<a id="pl.67.8"></a><var>67.8</var>organization;<br/>
<a id="pl.67.9"></a><var>67.9</var>(ii) the name and form of that converting organization and the jurisdiction of its <br/>
<a id="pl.67.10"></a><var>67.10</var>governing statute; and<br/>
<a id="pl.67.11"></a><var>67.11</var>(iii) a statement that the conversion was approved in a manner that complied with <br/>
<a id="pl.67.12"></a><var>67.12</var>the converting organization's governing statute.<br/>
<a id="pl.67.13"></a><var>67.13</var>    Subd. 2. <b>Effective date and time of conversion.</b> A conversion becomes effective:<br/>
<a id="pl.67.14"></a><var>67.14</var>(1) if the converted organization is a limited liability company, when the articles <br/>
<a id="pl.67.15"></a><var>67.15</var>of organization takes effect; and<br/>
<a id="pl.67.16"></a><var>67.16</var>(2) if the converted organization is not a limited liability company, as provided by <br/>
<a id="pl.67.17"></a><var>67.17</var>the governing statute of the converted organization.<br/>
<br/>
<a id="bill.1.79.0"></a><a id="pl.67.18"></a><var>67.18</var>    Sec. 79. <b>[322C.1010] EFFECT OF CONVERSION.</b><br/>
<a id="pl.67.19"></a><var>67.19</var>    Subdivision 1. <b>Same entity.</b> An organization that has been converted pursuant to <br/>
<a id="pl.67.20"></a><var>67.20</var>sections 322C.1007 to 322C.1009 is for all purposes the same entity that existed before <br/>
<a id="pl.67.21"></a><var>67.21</var>the conversion.<br/>
<a id="pl.67.22"></a><var>67.22</var>    Subd. 2. <b>Effect on converting organization.</b> When a conversion takes effect:<br/>
<a id="pl.67.23"></a><var>67.23</var>(1) all property owned by the converting organization remains vested in the <br/>
<a id="pl.67.24"></a><var>67.24</var>converted organization;<br/>
<a id="pl.67.25"></a><var>67.25</var>(2) all debts, obligations, or other liabilities of the converting organization continue <br/>
<a id="pl.67.26"></a><var>67.26</var>as debts, obligations, or other liabilities of the converted organization;<br/>
<a id="pl.67.27"></a><var>67.27</var>(3) an action or proceeding pending by or against the converting organization may <br/>
<a id="pl.67.28"></a><var>67.28</var>be continued as if the conversion had not occurred;<br/>
<a id="pl.67.29"></a><var>67.29</var>(4) except as prohibited by law other than this chapter, all of the rights, privileges, <br/>
<a id="pl.67.30"></a><var>67.30</var>immunities, powers, and purposes of the converting organization remain vested in the <br/>
<a id="pl.67.31"></a><var>67.31</var>converted organization;<br/>
<a id="pl.67.32"></a><var>67.32</var>(5) except as otherwise provided in the plan of conversion, the terms and conditions <br/>
<a id="pl.67.33"></a><var>67.33</var>of the plan of conversion take effect; and<br/>
<a id="pl.67.34"></a><var>67.34</var>(6) except as otherwise agreed, the conversion does not dissolve a converting limited <br/>
<a id="pl.67.35"></a><var>67.35</var>liability company for the purposes of sections 322C.0701 to 322C.0707.<br/>
<a id="pl.68.1"></a><var>68.1</var>    Subd. 3. <b>Foreign organization.</b> A converted organization that is a foreign <br/>
<a id="pl.68.2"></a><var>68.2</var>organization consents to the jurisdiction of the courts of this state to enforce any debt, <br/>
<a id="pl.68.3"></a><var>68.3</var>obligation, or other liability for which the converting limited liability company is liable <br/>
<a id="pl.68.4"></a><var>68.4</var>if, before the conversion, the converting limited liability company was subject to suit in <br/>
<a id="pl.68.5"></a><var>68.5</var>this state on the debt, obligation, or other liability. A converted organization that is a <br/>
<a id="pl.68.6"></a><var>68.6</var>foreign organization and not authorized to transact business in this state appoints the <br/>
<a id="pl.68.7"></a><var>68.7</var>secretary of state as its agent for service of process for purposes of enforcing a debt, <br/>
<a id="pl.68.8"></a><var>68.8</var>obligation, or other liability under this subdivision. Service on the secretary of state under <br/>
<a id="pl.68.9"></a><var>68.9</var>this subdivision must be made in the same manner and has the same consequences as in <br/>
<a id="pl.68.10"></a><var>68.10</var>section 322C.0116, subdivisions 3 and 4.<br/>
<br/>
<a id="bill.1.80.0"></a><a id="pl.68.11"></a><var>68.11</var>    Sec. 80. <b>[322C.1011] DOMESTICATION.</b><br/>
<a id="pl.68.12"></a><var>68.12</var>    Subdivision 1. <b>Foreign limited liability company.</b> A foreign limited liability <br/>
<a id="pl.68.13"></a><var>68.13</var>company may become a limited liability company pursuant to this section, sections <br/>
<a id="pl.68.14"></a><var>68.14</var>322C.1011 to 322C.1013, and a plan of domestication if:<br/>
<a id="pl.68.15"></a><var>68.15</var>(1) the foreign limited liability company's governing statute authorizes the <br/>
<a id="pl.68.16"></a><var>68.16</var>domestication;<br/>
<a id="pl.68.17"></a><var>68.17</var>(2) the domestication is not prohibited by the law of the jurisdiction that enacted <br/>
<a id="pl.68.18"></a><var>68.18</var>the governing statute; and<br/>
<a id="pl.68.19"></a><var>68.19</var>(3) the foreign limited liability company complies with its governing statute in <br/>
<a id="pl.68.20"></a><var>68.20</var>effecting the domestication.<br/>
<a id="pl.68.21"></a><var>68.21</var>    Subd. 2. <b>Domestic limited liability company.</b> A limited liability company may <br/>
<a id="pl.68.22"></a><var>68.22</var>become a foreign limited liability company pursuant to this section, sections 322C.1011 to <br/>
<a id="pl.68.23"></a><var>68.23</var>322C.1013, and a plan of domestication if:<br/>
<a id="pl.68.24"></a><var>68.24</var>(1) the foreign limited liability company's governing statute authorizes the <br/>
<a id="pl.68.25"></a><var>68.25</var>domestication;<br/>
<a id="pl.68.26"></a><var>68.26</var>(2) the domestication is not prohibited by the law of the jurisdiction that enacted <br/>
<a id="pl.68.27"></a><var>68.27</var>the governing statute; and<br/>
<a id="pl.68.28"></a><var>68.28</var>(3) the foreign limited liability company complies with its governing statute in <br/>
<a id="pl.68.29"></a><var>68.29</var>effecting the domestication.<br/>
<a id="pl.68.30"></a><var>68.30</var>    Subd. 3. <b>Plan of domestication.</b> A plan of domestication must be in a record <br/>
<a id="pl.68.31"></a><var>68.31</var>and must include:<br/>
<a id="pl.68.32"></a><var>68.32</var>(1) the name of the domesticating company before domestication and the jurisdiction <br/>
<a id="pl.68.33"></a><var>68.33</var>of its governing statute;<br/>
<a id="pl.68.34"></a><var>68.34</var>(2) the name of the domesticated company after domestication and the jurisdiction <br/>
<a id="pl.68.35"></a><var>68.35</var>of its governing statute;<br/>
<a id="pl.69.1"></a><var>69.1</var>(3) the terms and conditions of the domestication, including the manner and basis <br/>
<a id="pl.69.2"></a><var>69.2</var>for converting interests in the domesticating company into any combination of money, <br/>
<a id="pl.69.3"></a><var>69.3</var>interests in the domesticated company, and other consideration; and<br/>
<a id="pl.69.4"></a><var>69.4</var>(4) the organizational documents of the domesticated company that are, or are <br/>
<a id="pl.69.5"></a><var>69.5</var>proposed to be, in a record.<br/>
<br/>
<a id="bill.1.81.0"></a><a id="pl.69.6"></a><var>69.6</var>    Sec. 81. <b>[322C.1012] ACTION ON PLAN OF DOMESTICATION BY </b><br/>
<a id="pl.69.7"></a><var>69.7</var><b>DOMESTICATING LIMITED LIABILITY COMPANY.</b><br/>
<a id="pl.69.8"></a><var>69.8</var>    Subdivision 1. <b>Consent required.</b> A plan of domestication must be consented to:<br/>
<a id="pl.69.9"></a><var>69.9</var>(1) by all the members, subject to section 322C.1015, if the domesticating company <br/>
<a id="pl.69.10"></a><var>69.10</var>is a limited liability company; and<br/>
<a id="pl.69.11"></a><var>69.11</var>(2) as provided in the domesticating company's governing statute, if the company is <br/>
<a id="pl.69.12"></a><var>69.12</var>a foreign limited liability company.<br/>
<a id="pl.69.13"></a><var>69.13</var>    Subd. 2. <b>Amendment of plan or abandonment of domestication.</b> Subject to any <br/>
<a id="pl.69.14"></a><var>69.14</var>contractual rights, after a domestication is approved, and at any time before articles of <br/>
<a id="pl.69.15"></a><var>69.15</var>domestication are filed with the secretary of state under section 322C.1013, a domesticating <br/>
<a id="pl.69.16"></a><var>69.16</var>limited liability company may amend the plan or abandon the domestication:<br/>
<a id="pl.69.17"></a><var>69.17</var>(1) as provided in the plan; or<br/>
<a id="pl.69.18"></a><var>69.18</var>(2) except as otherwise prohibited in the plan, by the same consent as was required <br/>
<a id="pl.69.19"></a><var>69.19</var>to approve the plan.<br/>
<br/>
<a id="bill.1.82.0"></a><a id="pl.69.20"></a><var>69.20</var>    Sec. 82. <b>[322C.1013] FILINGS REQUIRED FOR DOMESTICATION; </b><br/>
<a id="pl.69.21"></a><var>69.21</var><b>EFFECTIVE DATE.</b><br/>
<a id="pl.69.22"></a><var>69.22</var>    Subdivision 1. <b>Articles of domestication.</b> After a plan of domestication is approved, <br/>
<a id="pl.69.23"></a><var>69.23</var>a domesticating company shall file with the secretary of state articles of domestication, <br/>
<a id="pl.69.24"></a><var>69.24</var>together with a total fee of $60, which articles of domestication must include:<br/>
<a id="pl.69.25"></a><var>69.25</var>(1) a statement, as the case may be, that the company has been domesticated from or <br/>
<a id="pl.69.26"></a><var>69.26</var>into another jurisdiction;<br/>
<a id="pl.69.27"></a><var>69.27</var>(2) the name of the domesticating company and the jurisdiction of its governing <br/>
<a id="pl.69.28"></a><var>69.28</var>statute;<br/>
<a id="pl.69.29"></a><var>69.29</var>(3) the name of the domesticated company and the jurisdiction of its governing statute;<br/>
<a id="pl.69.30"></a><var>69.30</var>(4) the date the domestication is effective under the governing statute of the <br/>
<a id="pl.69.31"></a><var>69.31</var>domesticated company;<br/>
<a id="pl.69.32"></a><var>69.32</var>(5) if the domesticating company was a limited liability company, a statement that <br/>
<a id="pl.69.33"></a><var>69.33</var>the domestication was approved as required by this chapter;<br/>
<a id="pl.70.1"></a><var>70.1</var>(6) if the domesticating company was a foreign limited liability company, a <br/>
<a id="pl.70.2"></a><var>70.2</var>statement that the domestication was approved as required by the governing statute of <br/>
<a id="pl.70.3"></a><var>70.3</var>the other jurisdiction; and<br/>
<a id="pl.70.4"></a><var>70.4</var>(7) if the domesticated company was a foreign limited liability company not <br/>
<a id="pl.70.5"></a><var>70.5</var>authorized to transact business in this state, the street address of an office that the secretary <br/>
<a id="pl.70.6"></a><var>70.6</var>of state may use for the purposes of section 322C.1014, subdivision 2.<br/>
<a id="pl.70.7"></a><var>70.7</var>    Subd. 2. <b>Effective date of domestication.</b> A domestication becomes effective:<br/>
<a id="pl.70.8"></a><var>70.8</var>(1) when the articles of organization takes effect, if the domesticated company is <br/>
<a id="pl.70.9"></a><var>70.9</var>a limited liability company; and<br/>
<a id="pl.70.10"></a><var>70.10</var>(2) according to the governing statute of the domesticated company, if the <br/>
<a id="pl.70.11"></a><var>70.11</var>domesticated organization is a foreign limited liability company.<br/>
<br/>
<a id="bill.1.83.0"></a><a id="pl.70.12"></a><var>70.12</var>    Sec. 83. <b>[322C.1014] EFFECT OF DOMESTICATION.</b><br/>
<a id="pl.70.13"></a><var>70.13</var>    Subdivision 1. <b>Effect on domesticating company.</b> When a domestication takes <br/>
<a id="pl.70.14"></a><var>70.14</var>effect:<br/>
<a id="pl.70.15"></a><var>70.15</var>(1) the domesticated company is for all purposes the company that existed before <br/>
<a id="pl.70.16"></a><var>70.16</var>the domestication;<br/>
<a id="pl.70.17"></a><var>70.17</var>(2) all property owned by the domesticating company remains vested in the <br/>
<a id="pl.70.18"></a><var>70.18</var>domesticated company;<br/>
<a id="pl.70.19"></a><var>70.19</var>(3) all debts, obligations, or other liabilities of the domesticating company continue <br/>
<a id="pl.70.20"></a><var>70.20</var>as debts, obligations, or other liabilities of the domesticated company;<br/>
<a id="pl.70.21"></a><var>70.21</var>(4) an action or proceeding pending by or against a domesticating company may be <br/>
<a id="pl.70.22"></a><var>70.22</var>continued as if the domestication had not occurred;<br/>
<a id="pl.70.23"></a><var>70.23</var>(5) except as prohibited by other law, all of the rights, privileges, immunities, powers, <br/>
<a id="pl.70.24"></a><var>70.24</var>and purposes of the domesticating company remain vested in the domesticated company;<br/>
<a id="pl.70.25"></a><var>70.25</var>(6) except as otherwise provided in the plan of domestication, the terms and <br/>
<a id="pl.70.26"></a><var>70.26</var>conditions of the plan of domestication take effect; and<br/>
<a id="pl.70.27"></a><var>70.27</var>(7) except as otherwise agreed, the domestication does not dissolve a domesticating <br/>
<a id="pl.70.28"></a><var>70.28</var>limited liability company for the purposes of sections 322C.0701 to 322C.0707.<br/>
<a id="pl.70.29"></a><var>70.29</var>    Subd. 2. <b>Foreign company.</b> A domesticated company that is a foreign limited <br/>
<a id="pl.70.30"></a><var>70.30</var>liability company consents to the jurisdiction of the courts of this state to enforce any <br/>
<a id="pl.70.31"></a><var>70.31</var>debt, obligation, or other liability owed by the domesticating company if, before the <br/>
<a id="pl.70.32"></a><var>70.32</var>domestication, the domesticating company was subject to suit in this state on the debt, <br/>
<a id="pl.70.33"></a><var>70.33</var>obligation, or other liability. A domesticated company that is a foreign limited liability <br/>
<a id="pl.70.34"></a><var>70.34</var>company and not authorized to transact business in this state appoints the secretary of state <br/>
<a id="pl.70.35"></a><var>70.35</var>as its agent for service of process for purposes of enforcing a debt, obligation, or other <br/>
<a id="pl.71.1"></a><var>71.1</var>liability under this subdivision. Service on the secretary of state under this subdivision <br/>
<a id="pl.71.2"></a><var>71.2</var>must be made in the same manner and has the same consequences as in section 322C.0116, <br/>
<a id="pl.71.3"></a><var>71.3</var>subdivisions 3 and 4.<br/>
<a id="pl.71.4"></a><var>71.4</var>    Subd. 3. <b>Foreign jurisdiction.</b> If a limited liability company has adopted and <br/>
<a id="pl.71.5"></a><var>71.5</var>approved a plan of domestication under section 322C.1011 providing for the company to <br/>
<a id="pl.71.6"></a><var>71.6</var>be domesticated in a foreign jurisdiction, a statement surrendering the company's articles <br/>
<a id="pl.71.7"></a><var>71.7</var>of organization must be filed with the secretary of state setting forth:<br/>
<a id="pl.71.8"></a><var>71.8</var>(1) the name of the company;<br/>
<a id="pl.71.9"></a><var>71.9</var>(2) a statement that the articles of organization is being surrendered in connection <br/>
<a id="pl.71.10"></a><var>71.10</var>with the domestication of the company in a foreign jurisdiction;<br/>
<a id="pl.71.11"></a><var>71.11</var>(3) a statement that the domestication was approved as required by this chapter; and<br/>
<a id="pl.71.12"></a><var>71.12</var>(4) the jurisdiction of formation of the domesticated foreign limited liability company.<br/>
<br/>
<a id="bill.1.84.0"></a><a id="pl.71.13"></a><var>71.13</var>    Sec. 84. <b>[322C.1015] RESTRICTIONS ON APPROVAL OF MERGERS, </b><br/>
<a id="pl.71.14"></a><var>71.14</var><b>EXCHANGES, CONVERSIONS, AND DOMESTICATIONS.</b><br/>
<a id="pl.71.15"></a><var>71.15</var>    Subdivision 1. <b>Personality liability of member.</b> If a member of a constituent, <br/>
<a id="pl.71.16"></a><var>71.16</var>converting, or domesticating limited liability company will have personal liability with <br/>
<a id="pl.71.17"></a><var>71.17</var>respect to a surviving, constituent, converted, or domesticated organization, approval or <br/>
<a id="pl.71.18"></a><var>71.18</var>amendment of a plan of merger, exchange, conversion, or domestication is ineffective <br/>
<a id="pl.71.19"></a><var>71.19</var>without the consent of the member, unless:<br/>
<a id="pl.71.20"></a><var>71.20</var>(1) the company's operating agreement provides for approval of a merger, exchange, <br/>
<a id="pl.71.21"></a><var>71.21</var>conversion, or domestication with the consent of fewer than all the members; and<br/>
<a id="pl.71.22"></a><var>71.22</var>(2) the member has consented to the provision of the operating agreement.<br/>
<a id="pl.71.23"></a><var>71.23</var>    Subd. 2. <b>Consent. </b> A member does not give the consent required by subdivision 1 <br/>
<a id="pl.71.24"></a><var>71.24</var>merely by consenting to a provision of the operating agreement that permits the operating <br/>
<a id="pl.71.25"></a><var>71.25</var>agreement to be amended with the consent of fewer than all the members.<br/>
<br/>
<a id="bill.1.85.0"></a><a id="pl.71.26"></a><var>71.26</var>    Sec. 85. <b>[322C.1101] NONPROFIT LIMITED LIABILITY COMPANIES.</b><br/>
<a id="pl.71.27"></a><var>71.27</var>    Subdivision 1. <b>Status as nonprofit limited liability company.</b> A limited liability <br/>
<a id="pl.71.28"></a><var>71.28</var>company is a nonprofit limited liability company if it is organized under or governed by <br/>
<a id="pl.71.29"></a><var>71.29</var>this chapter and its articles of organization state that it is a nonprofit limited liability <br/>
<a id="pl.71.30"></a><var>71.30</var>company governed by this section. The status of a nonprofit limited liability company <br/>
<a id="pl.71.31"></a><var>71.31</var>under this chapter is not determinative of its tax treatment.<br/>
<a id="pl.71.32"></a><var>71.32</var>    Subd. 2. <b>Limitations on pecuniary gain and distributions to members.</b> A <br/>
<a id="pl.71.33"></a><var>71.33</var>nonprofit limited liability company may not:<br/>
<a id="pl.72.1"></a><var>72.1</var>(1) be formed for a purpose involving pecuniary gain to its members, other than to <br/>
<a id="pl.72.2"></a><var>72.2</var>members that are nonprofit organizations or subdivisions, units, or agencies of the United <br/>
<a id="pl.72.3"></a><var>72.3</var>States or a state or local government; or<br/>
<a id="pl.72.4"></a><var>72.4</var>(2) pay dividends, make distributions, or pay other pecuniary remuneration, directly <br/>
<a id="pl.72.5"></a><var>72.5</var>or indirectly, to its members, other than to members that are nonprofit organizations or <br/>
<a id="pl.72.6"></a><var>72.6</var>subdivisions, units, or agencies of the United States or a state or local government.<br/>
<a id="pl.72.7"></a><var>72.7</var>    Subd. 3. <b>Limitations on persons who may be members.</b> A natural person may not <br/>
<a id="pl.72.8"></a><var>72.8</var>be a member of, or own any transferable interest in, a nonprofit limited liability company.<br/>
<a id="pl.72.9"></a><var>72.9</var>    Subd. 4. <b>Purposes; conduct.</b> (a) Subject to subdivision 2:<br/>
<a id="pl.72.10"></a><var>72.10</var>(1) a nonprofit limited liability company may be organized under this chapter for <br/>
<a id="pl.72.11"></a><var>72.11</var>any lawful purpose, unless another statute requires incorporation or organization for a <br/>
<a id="pl.72.12"></a><var>72.12</var>purpose under a different law; and<br/>
<a id="pl.72.13"></a><var>72.13</var>(2) a nonprofit limited liability company has a general purpose of engaging in any <br/>
<a id="pl.72.14"></a><var>72.14</var>lawful activity unless otherwise limited in its articles of organization.<br/>
<a id="pl.72.15"></a><var>72.15</var>(b) A nonprofit limited liability company engaging in conduct that is regulated by <br/>
<a id="pl.72.16"></a><var>72.16</var>another statute is subject to the limitations of the other statute.<br/>
<a id="pl.72.17"></a><var>72.17</var>    Subd. 5. <b>Management; provisions of chapter 317A applicable to nonprofit </b><br/>
<a id="pl.72.18"></a><var>72.18</var><b>limited liability companies.</b> (a) A nonprofit limited liability company must be <br/>
<a id="pl.72.19"></a><var>72.19</var>board-managed. The business and affairs of a nonprofit limited liability company must be <br/>
<a id="pl.72.20"></a><var>72.20</var>managed by or under the direction of a board of governors, which will have such powers <br/>
<a id="pl.72.21"></a><var>72.21</var>as are usually exercised by the board of directors of a nonprofit corporation governed by <br/>
<a id="pl.72.22"></a><var>72.22</var>chapter 317A. All governors will be entitled to vote and have equal rights and preferences <br/>
<a id="pl.72.23"></a><var>72.23</var>except as otherwise provided in the articles of organization or operating agreement. The <br/>
<a id="pl.72.24"></a><var>72.24</var>members of the first board may be named in the articles of organization, designated, or <br/>
<a id="pl.72.25"></a><var>72.25</var>appointed pursuant to the articles of organization, or elected by the organizer.<br/>
<a id="pl.72.26"></a><var>72.26</var>(b) A nonprofit limited liability company must have one or more natural persons <br/>
<a id="pl.72.27"></a><var>72.27</var>acting as officers and exercising the functions of the offices of president and treasurer, <br/>
<a id="pl.72.28"></a><var>72.28</var>however designated. The officers have such powers as are usually exercised by similar <br/>
<a id="pl.72.29"></a><var>72.29</var>officers of a nonprofit corporation governed by chapter 317A. The board shall elect <br/>
<a id="pl.72.30"></a><var>72.30</var>or appoint officers, except to the extent that the articles of organization or operating <br/>
<a id="pl.72.31"></a><var>72.31</var>agreement provide that the members may elect or appoint officers.<br/>
<a id="pl.72.32"></a><var>72.32</var>(c) Section 317A.161, subdivision 11, applies to a nonprofit limited liability <br/>
<a id="pl.72.33"></a><var>72.33</var>company as if it were a nonprofit corporation governed by chapter 317A. Section <br/>
<a id="pl.72.34"></a><var>72.34</var>317A.251 applies to a governor of a nonprofit limited liability company as if the governor <br/>
<a id="pl.72.35"></a><var>72.35</var>were a director of a nonprofit corporation, and section 322C.409 does not apply.<br/>
<a id="pl.73.1"></a><var>73.1</var>(d) Section 317A.255 applies to, and with regard to, a governor of a nonprofit limited <br/>
<a id="pl.73.2"></a><var>73.2</var>liability company as if the governor were a director of a nonprofit corporation.<br/>
<a id="pl.73.3"></a><var>73.3</var>(e) Section 317A.257 applies to a person who serves without compensation as <br/>
<a id="pl.73.4"></a><var>73.4</var>a governor of a nonprofit limited liability company, manager, member, or agent of a <br/>
<a id="pl.73.5"></a><var>73.5</var>nonprofit limited liability company as if such person were serving without compensation <br/>
<a id="pl.73.6"></a><var>73.6</var>as a director, officer, member, or agent of a nonprofit corporation.<br/>
<a id="pl.73.7"></a><var>73.7</var>(f) Section 317A.671 regarding the diversion of certain assets applies to a nonprofit <br/>
<a id="pl.73.8"></a><var>73.8</var>limited liability company as if it were a nonprofit corporation governed by chapter 317A.<br/>
<a id="pl.73.9"></a><var>73.9</var>(g) Section 317A.735 regarding the distribution of assets on dissolution applies to <br/>
<a id="pl.73.10"></a><var>73.10</var>a nonprofit limited liability company as if it were a nonprofit corporation governed by <br/>
<a id="pl.73.11"></a><var>73.11</var>chapter 317A.<br/>
<a id="pl.73.12"></a><var>73.12</var>(h) Section 317A.751 regarding judicial intervention applies to a nonprofit limited <br/>
<a id="pl.73.13"></a><var>73.13</var>liability company as if it were a nonprofit corporation governed by chapter 317A.<br/>
<a id="pl.73.14"></a><var>73.14</var>    Subd. 6. <b>Notice to and authority of attorney general.</b> The attorney general has <br/>
<a id="pl.73.15"></a><var>73.15</var>the same authority and powers with regard to a nonprofit limited liability company as the <br/>
<a id="pl.73.16"></a><var>73.16</var>attorney general has with regard to a corporation governed by chapter 317A, including but <br/>
<a id="pl.73.17"></a><var>73.17</var>not limited to sections 317A.811 and 317A.813.<br/>

<a id="bill.1.86.0"></a><a id="pl.73.19"></a><var>73.19</var>    Sec. 86. <b>[322C.1201] UNIFORMITY OF APPLICATION AND </b><br/>
<a id="pl.73.20"></a><var>73.20</var><b>CONSTRUCTION.</b><br/>
<a id="pl.73.21"></a><var>73.21</var>In applying and construing this uniform act, consideration must be given to the need <br/>
<a id="pl.73.22"></a><var>73.22</var>to promote uniformity of the law with respect to its subject matter among states that enact it.<br/>
<br/>
<a id="bill.1.87.0"></a><a id="pl.73.23"></a><var>73.23</var>    Sec. 87. <b>[322C.1202] RELATION TO ELECTRONIC SIGNATURES IN </b><br/>
<a id="pl.73.24"></a><var>73.24</var><b>GLOBAL AND NATIONAL COMMERCE ACT.</b><br/>
<a id="pl.73.25"></a><var>73.25</var>This chapter modifies, limits, and supersedes the federal Electronic Signatures in <br/>
<a id="pl.73.26"></a><var>73.26</var>Global and National Commerce Act, United States Code, title 15, section 7001 et seq., but <br/>
<a id="pl.73.27"></a><var>73.27</var>does not modify, limit, or supersede section 101(c) of that act, United States Code, title 15, <br/>
<a id="pl.73.28"></a><var>73.28</var>section 7001(c), or authorize electronic delivery of any of the notices described in section <br/>
<a id="pl.73.29"></a><var>73.29</var>103(b) of that act, United States Code, title 15, section 7003(b).<br/>
<br/>
<a id="bill.1.88.0"></a><a id="pl.73.30"></a><var>73.30</var>    Sec. 88. <b>[322C.1203] SAVINGS CLAUSE.</b><br/>
<a id="pl.73.31"></a><var>73.31</var>This chapter does not affect an action commenced, proceeding brought, or right <br/>
<a id="pl.73.32"></a><var>73.32</var>accrued before this chapter takes effect.<br/>
<br/>
<a id="bill.1.89.0"></a><a id="pl.74.1"></a><var>74.1</var>    Sec. 89. <b>[322C.1204] APPLICATION TO EXISTING RELATIONSHIPS.</b><br/>
<a id="pl.74.2"></a><var>74.2</var>    Subdivision 1. <b>Before January 1, 2018.</b> (a) On or after August 1, 2015, a limited <br/>
<a id="pl.74.3"></a><var>74.3</var>liability company may not be formed under chapter 322B.<br/>
<a id="pl.74.4"></a><var>74.4</var>(b) Before January 1, 2018, this chapter governs only:<br/>
<a id="pl.74.5"></a><var>74.5</var>(1) a limited liability company formed on or after August 1, 2015; and<br/>
<a id="pl.74.6"></a><var>74.6</var>(2) except as otherwise provided in subdivision 3, a limited liability company <br/>
<a id="pl.74.7"></a><var>74.7</var>formed before August 1, 2015, which elects, in the manner provided in its operating <br/>
<a id="pl.74.8"></a><var>74.8</var>agreement or bylaw for amending the operating agreement, to be subject to this chapter.<br/>
<a id="pl.74.9"></a><var>74.9</var>    Subd. 2. <b> On or after January 1, 2018.</b> Except as otherwise provided in subdivision <br/>
<a id="pl.74.10"></a><var>74.10</var>3, on and after January 1, 2018, this chapter governs all limited liability companies.<br/>
<a id="pl.74.11"></a><var>74.11</var>    Subd. 3. <b>Application to existing company.</b> For the purposes of applying this <br/>
<a id="pl.74.12"></a><var>74.12</var>chapter to a limited liability company formed before August 1, 2015:<br/>
<a id="pl.74.13"></a><var>74.13</var>(1) the company's articles of organization are deemed to be the company's articles <br/>
<a id="pl.74.14"></a><var>74.14</var>of organization; and<br/>
<a id="pl.74.15"></a><var>74.15</var>(2) for the purposes of applying section 322C.0102, subdivision 10, and subject <br/>
<a id="pl.74.16"></a><var>74.16</var>to section 322C.0112, subdivision 4, language in the articles of organization, bylaws, <br/>
<a id="pl.74.17"></a><var>74.17</var>operating agreement, and/or member control agreement of a limited liability company <br/>
<a id="pl.74.18"></a><var>74.18</var>formed before August 1, 2015, that becomes subject to this chapter will operate as if <br/>
<a id="pl.74.19"></a><var>74.19</var>that language were in the operating agreement of the limited liability company when it <br/>
<a id="pl.74.20"></a><var>74.20</var>becomes subject to this chapter.<br/>
<br/>
<a id="bill.1.90.0"></a><a id="pl.74.21"></a><var>74.21</var>    Sec. 90. <b>[322C.1205] STATE INTERESTED IN PROCEEDING.</b><br/>
<a id="pl.74.22"></a><var>74.22</var>If it appears at any stage of a proceeding in a court in this state that the state is, or is <br/>
<a id="pl.74.23"></a><var>74.23</var>likely to be, interested in the proceeding or that it is a matter of general public interest, <br/>
<a id="pl.74.24"></a><var>74.24</var>the court shall order that a copy of the complaint or petition be served upon the attorney <br/>
<a id="pl.74.25"></a><var>74.25</var>general in the same manner prescribed for serving a summons in a civil action. The <br/>
<a id="pl.74.26"></a><var>74.26</var>attorney general shall intervene in a proceeding when the attorney general determines that <br/>
<a id="pl.74.27"></a><var>74.27</var>the public interest requires it, whether or not the attorney general has been served.<br/>
<br/>
<a id="bill.1.91.0"></a><a id="pl.74.28"></a><var>74.28</var>    Sec. 91. <b> REPEALER; EFFECTIVE DATE.</b><br/>
<a id="pl.74.29"></a><var>74.29</var>Minnesota Statutes 2012, sections 322B.01; 322B.02; 322B.03, subdivisions 1, 2, 3, <br/>
<a id="pl.74.30"></a><var>74.30</var>6, 6a, 7, 8, 10, 11, 12, 13, 14, 15, 17, 17a, 17b, 18, 19, 19a, 20, 21, 22, 23, 24, 25, 26, 27, <br/>
<a id="pl.74.31"></a><var>74.31</var>28, 29, 30, 31, 31a, 32, 33, 34, 35, 36, 36a, 37, 38, 39, 40, 41, 41a, 42, 43, 44, 45, 45a, <br/>
<a id="pl.74.32"></a><var>74.32</var>46, 47, 48, 49, 50, and 51; 322B.04; 322B.10; 322B.105; 322B.11; 322B.115; 322B.12, <br/>
<a id="pl.74.33"></a><var>74.33</var>subdivisions 1, 2, 3, 4, and 5; 322B.125; 322B.13; 322B.135; 322B.14; 322B.145; <br/>
<a id="pl.74.34"></a><var>74.34</var>322B.15; 322B.155; 322B.16; 322B.165; 322B.17; 322B.175; 322B.18; 322B.20; <br/>
<a id="pl.75.1"></a><var>75.1</var>322B.21; 322B.22; 322B.23; 322B.30; 322B.303; 322B.306; 322B.31; 322B.313; <br/>
<a id="pl.75.2"></a><var>75.2</var>322B.316; 322B.32; 322B.323; 322B.326; 322B.33; 322B.333; 322B.336; 322B.34; <br/>
<a id="pl.75.3"></a><var>75.3</var>322B.343; 322B.346; 322B.348; 322B.35; 322B.353; 322B.356; 322B.36; 322B.363, <br/>
<a id="pl.75.4"></a><var>75.4</var>subdivisions 1, 2, 3, 4, 5, 6, and 7; 322B.366, subdivision 1; 322B.37; 322B.373; <br/>
<a id="pl.75.5"></a><var>75.5</var>322B.376; 322B.38; 322B.383; 322B.386; 322B.40; 322B.41; 322B.42; 322B.43; <br/>
<a id="pl.75.6"></a><var>75.6</var>322B.50; 322B.51; 322B.52; 322B.53; 322B.54; 322B.55; 322B.56; 322B.60; 322B.603; <br/>
<a id="pl.75.7"></a><var>75.7</var>322B.606; 322B.61; 322B.613; 322B.616; 322B.62; 322B.623; 322B.626; 322B.63; <br/>
<a id="pl.75.8"></a><var>75.8</var>322B.633; 322B.636; 322B.64; 322B.643; 322B.646; 322B.65; 322B.653; 322B.656; <br/>
<a id="pl.75.9"></a><var>75.9</var>322B.66; 322B.663; 322B.666; 322B.67; 322B.673; 322B.676; 322B.679; 322B.68; <br/>
<a id="pl.75.10"></a><var>75.10</var>322B.683; 322B.686; 322B.689; 322B.69; 322B.693; 322B.696; 322B.699; 322B.70; <br/>
<a id="pl.75.11"></a><var>75.11</var>322B.71; 322B.72; 322B.73; 322B.74; 322B.75; 322B.755; 322B.76; 322B.77; 322B.78; <br/>
<a id="pl.75.12"></a><var>75.12</var>322B.80; 322B.803; 322B.806; 322B.81; 322B.813; 322B.816, subdivisions 1, 2, 4, 5, and <br/>
<a id="pl.75.13"></a><var>75.13</var>6; 322B.82; 322B.823; 322B.826; 322B.83; 322B.833; 322B.836; 322B.84; 322B.843; <br/>
<a id="pl.75.14"></a><var>75.14</var>322B.846; 322B.85; 322B.853; 322B.856; 322B.86; 322B.863; 322B.866; 322B.87; <br/>
<a id="pl.75.15"></a><var>75.15</var>322B.873, subdivisions 1 and 4; 322B.876, subdivision 1; 322B.88; 322B.883; 322B.90; <br/>
<a id="pl.75.16"></a><var>75.16</var>322B.905; 322B.91, subdivisions 1 and 2; 322B.915; 322B.92; 322B.925; 322B.93; <br/>
<a id="pl.75.17"></a><var>75.17</var>322B.935; 322B.94; 322B.945; 322B.95; 322B.955; 322B.960, subdivisions 1, 4, and <br/>
<a id="pl.75.18"></a><var>75.18</var>5; and 322B.975, are repealed effective January 1, 2018.<br/>
<br/>
<a id="bill.1.92.0"></a><a id="pl.75.19"></a><var>75.19</var>    Sec. 92. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.75.20"></a><var>75.20</var>Except as otherwise provided, this article is effective August 1, 2015.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.75.23"></a><var>75.23</var>    Section 1. Minnesota Statutes 2012, section 48A.03, subdivision 4, is amended to read:<br/>
<a id="pl.75.24"></a><var>75.24</var>    Subd. 4. <b>Requirements for consolidated </b><b>or merged </b><b>companies.</b> When two or <br/>
<a id="pl.75.25"></a><var>75.25</var>more trust companies have been or are consolidated under sections 
         <statute_ref>49.34</statute_ref> to 
         <statute_ref>49.41</statute_ref>, or, in <br/>
<a id="pl.75.26"></a><var>75.26</var>the case of a limited liability company, that has been or is merged under sections 
         <statute_ref>322B.70</statute_ref> <br/>
<a id="pl.75.27"></a><var>75.27</var>to 
         <statute_ref>322B.75</statute_ref> or 322C.1001 to 322C.1005 and 322C.1015, the capital of the consolidated<br/>
<a id="pl.75.28"></a><var>75.28</var> or merged trust company is considered substituted for the capital of the several trust <br/>
<a id="pl.75.29"></a><var>75.29</var>companies entering into the consolidation or merger, and the aggregate of the securities <br/>
<a id="pl.75.30"></a><var>75.30</var>of these trust companies on deposit with the commissioner of management and budget, <br/>
<a id="pl.75.31"></a><var>75.31</var>according to this section, must be increased or diminished accordingly. <br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.75.32"></a><var>75.32</var>    Sec. 2. Minnesota Statutes 2012, section 181.970, subdivision 2, is amended to read:<br/>
<a id="pl.75.33"></a><var>75.33</var>    Subd. 2. <b>Exception.</b> Subdivision 1 does not apply to:<br/>
<a id="pl.76.1"></a><var>76.1</var>(1) employees of the state or a municipality governed by section 
         <statute_ref>3.736</statute_ref> or 
         <statute_ref>466.07</statute_ref>;<br/>
<a id="pl.76.2"></a><var>76.2</var>(2) employees who are subject to a contract or other agreement governing <br/>
<a id="pl.76.3"></a><var>76.3</var>indemnification rights;<br/>
<a id="pl.76.4"></a><var>76.4</var>(3) employees and employers who are governed by indemnification provisions under <br/>
<a id="pl.76.5"></a><var>76.5</var>section 
         <statute_ref>302A.521</statute_ref>, 
         <statute_ref>317A.521</statute_ref>, or
<statute_ref>322B.699</statute_ref>, or 322C.0408, or similar laws of this state or <br/>
<a id="pl.76.6"></a><var>76.6</var>another state specifically governing indemnification of employees of business or nonprofit <br/>
<a id="pl.76.7"></a><var>76.7</var>corporations, limited liability companies, or other legal entities; or<br/>
<a id="pl.76.8"></a><var>76.8</var>(4) indemnification rights for a particular liability specifically governed by other law.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.76.9"></a><var>76.9</var>    Sec. 3. Minnesota Statutes 2012, section 270C.721, is amended to read:<br/>
<a id="pl.76.10"></a><var>76.10</var><b>270C.721 REVOCATION OF CERTIFICATES OF AUTHORITY TO DO </b><br/>
<a id="pl.76.11"></a><var>76.11</var><b>BUSINESS IN THIS STATE.</b><br/>
<a id="pl.76.12"></a><var>76.12</var>When a foreign corporation authorized to do business in this state under chapter <br/>
<a id="pl.76.13"></a><var>76.13</var>303, or a foreign limited liability company or partnership authorized to do business in <br/>
<a id="pl.76.14"></a><var>76.14</var>this state under chapter 322B or 322C, fails to comply with a law administered by the <br/>
<a id="pl.76.15"></a><var>76.15</var>commissioner that imposes a tax, the commissioner may serve the secretary of state with <br/>
<a id="pl.76.16"></a><var>76.16</var>a certified copy of an order finding such failure to comply. The secretary of state, upon <br/>
<a id="pl.76.17"></a><var>76.17</var>receipt of the order, shall revoke the certificate of authority to do business in this state, <br/>
<a id="pl.76.18"></a><var>76.18</var>and shall reinstate the certificate entity under section 
         <statute_ref>303.19</statute_ref> or;
<statute_ref>322B.960, subdivision 6</statute_ref>,; <br/>
<a id="pl.76.19"></a><var>76.19</var>or 322C.0706 only when the corporation or limited liability company or partnership has <br/>
<a id="pl.76.20"></a><var>76.20</var>obtained from the commissioner an order finding that the corporation or limited liability <br/>
<a id="pl.76.21"></a><var>76.21</var>company or partnership is in compliance with such law. An order requiring revocation <br/>
<a id="pl.76.22"></a><var>76.22</var>of a certificate shall not be issued unless the commissioner gives the corporation or <br/>
<a id="pl.76.23"></a><var>76.23</var>limited liability company or partnership 30 days' written notice of the proposed order, <br/>
<a id="pl.76.24"></a><var>76.24</var>specifying the violations of law, and affording an opportunity to request a contested case <br/>
<a id="pl.76.25"></a><var>76.25</var>hearing under chapter 14.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.76.26"></a><var>76.26</var>    Sec. 4. Minnesota Statutes 2012, section 273.124, subdivision 8, is amended to read:<br/>
<a id="pl.76.27"></a><var>76.27</var>    Subd. 8. <b>Homestead owned by or leased to family farm corporation, joint farm </b><br/>
<a id="pl.76.28"></a><var>76.28</var><b>venture, limited liability company, or partnership.</b> (a) Each family farm corporation; <br/>
<a id="pl.76.29"></a><var>76.29</var>each joint family farm venture; and each limited liability company or partnership which <br/>
<a id="pl.76.30"></a><var>76.30</var>operates a family farm; is entitled to class 1b under section 
         <statute_ref>273.13, subdivision 22</statute_ref>, <br/>
<a id="pl.76.31"></a><var>76.31</var>paragraph (b), or class 2a assessment for one homestead occupied by a shareholder, <br/>
<a id="pl.76.32"></a><var>76.32</var>member, or partner thereof who is residing on the land, and actively engaged in farming of <br/>
<a id="pl.76.33"></a><var>76.33</var>the land owned by the family farm corporation, joint family farm venture, limited liability <br/>
<a id="pl.76.34"></a><var>76.34</var>company, or partnership. Homestead treatment applies even if legal title to the property is <br/>
<a id="pl.77.1"></a><var>77.1</var>in the name of the family farm corporation, joint family farm venture, limited liability <br/>
<a id="pl.77.2"></a><var>77.2</var>company, or partnership, and not in the name of the person residing on it.<br/>
<a id="pl.77.3"></a><var>77.3</var>"Family farm corporation," "family farm," and "partnership operating a family <br/>
<a id="pl.77.4"></a><var>77.4</var>farm" have the meanings given in section 
         <statute_ref>500.24</statute_ref>, except that the number of allowable <br/>
<a id="pl.77.5"></a><var>77.5</var>shareholders, members, or partners under this subdivision shall not exceed 12. "Limited <br/>
<a id="pl.77.6"></a><var>77.6</var>liability company" has the meaning contained in sections 
         <statute_ref>322B.03, subdivision 28</statute_ref>, or <br/>
<a id="pl.77.7"></a><var>77.7</var>322C.0102, subdivision 12, and 
         <statute_ref>500.24, subdivision 2</statute_ref>, paragraphs (l) and (m). "Joint <br/>
<a id="pl.77.8"></a><var>77.8</var>family farm venture" means a cooperative agreement among two or more farm enterprises <br/>
<a id="pl.77.9"></a><var>77.9</var>authorized to operate a family farm under section 
         <statute_ref>500.24</statute_ref>.<br/>
<a id="pl.77.10"></a><var>77.10</var>(b) In addition to property specified in paragraph (a), any other residences owned <br/>
<a id="pl.77.11"></a><var>77.11</var>by family farm corporations, joint family farm ventures, limited liability companies, <br/>
<a id="pl.77.12"></a><var>77.12</var>or partnerships described in paragraph (a) which are located on agricultural land and <br/>
<a id="pl.77.13"></a><var>77.13</var>occupied as homesteads by its shareholders, members, or partners who are actively <br/>
<a id="pl.77.14"></a><var>77.14</var>engaged in farming on behalf of that corporation, joint farm venture, limited liability <br/>
<a id="pl.77.15"></a><var>77.15</var>company, or partnership must also be assessed as class 2a property or as class 1b property <br/>
<a id="pl.77.16"></a><var>77.16</var>under section 
         <statute_ref>273.13</statute_ref>.<br/>
<a id="pl.77.17"></a><var>77.17</var>(c) Agricultural property that is owned by a member, partner, or shareholder of a <br/>
<a id="pl.77.18"></a><var>77.18</var>family farm corporation or joint family farm venture, limited liability company operating <br/>
<a id="pl.77.19"></a><var>77.19</var>a family farm, or by a partnership operating a family farm and leased to the family farm <br/>
<a id="pl.77.20"></a><var>77.20</var>corporation, limited liability company, partnership, or joint farm venture, as defined in <br/>
<a id="pl.77.21"></a><var>77.21</var>paragraph (a), is eligible for classification as class 1b or class 2a under section 
         <statute_ref>273.13</statute_ref>, if <br/>
<a id="pl.77.22"></a><var>77.22</var>the owner is actually residing on the property, and is actually engaged in farming the land <br/>
<a id="pl.77.23"></a><var>77.23</var>on behalf of that corporation, joint farm venture, limited liability company, or partnership. <br/>
<a id="pl.77.24"></a><var>77.24</var>This paragraph applies without regard to any legal possession rights of the family farm <br/>
<a id="pl.77.25"></a><var>77.25</var>corporation, joint family farm venture, limited liability company, or partnership under <br/>
<a id="pl.77.26"></a><var>77.26</var>the lease.<br/>
<a id="pl.77.27"></a><var>77.27</var>(d) Nonhomestead agricultural property that is owned by a family farm corporation, <br/>
<a id="pl.77.28"></a><var>77.28</var>joint farm venture, limited liability company, or partnership; and located not farther than <br/>
<a id="pl.77.29"></a><var>77.29</var>four townships or cities, or combination thereof, from agricultural land that is owned, and <br/>
<a id="pl.77.30"></a><var>77.30</var>used for the purposes of a homestead by an individual who is a shareholder, member, <br/>
<a id="pl.77.31"></a><var>77.31</var>or partner of the corporation, venture, company, or partnership; is entitled to receive <br/>
<a id="pl.77.32"></a><var>77.32</var>the first tier homestead class rate on any remaining market value in the first homestead <br/>
<a id="pl.77.33"></a><var>77.33</var>class tier that is in excess of the market value of the shareholder's, member's, or partner's <br/>
<a id="pl.77.34"></a><var>77.34</var>class 2 agricultural homestead property, if the owner, or someone acting on the owner's <br/>
<a id="pl.77.35"></a><var>77.35</var>behalf notifies the county assessor by July 1 that the property may be eligible under this <br/>
<a id="pl.77.36"></a><var>77.36</var>paragraph for the current assessment year, for taxes payable in the following year. As used <br/>
<a id="pl.78.1"></a><var>78.1</var>in this paragraph, "agricultural property" means property classified as 2a under section <br/>
<statute_ref><a id="pl.78.2"></a><var>78.2</var>273.13
         </statute_ref>, along with any contiguous property classified as 2b under section 
         <statute_ref>273.13</statute_ref>, if the <br/>
<a id="pl.78.3"></a><var>78.3</var>contiguous 2a and 2b properties are under the same ownership.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.78.4"></a><var>78.4</var>    Sec. 5. Minnesota Statutes 2012, section 290.01, subdivision 3b, is amended to read:<br/>
<a id="pl.78.5"></a><var>78.5</var>    Subd. 3b. <b>Limited liability company.</b> For purposes of this chapter and chapter <br/>
<a id="pl.78.6"></a><var>78.6</var>289A, a limited liability company, including a nonprofit limited liability company under <br/>
<a id="pl.78.7"></a><var>78.7</var>section 
<statute_ref>322B.975</statute_ref>, that is formed under either the laws of this state or under similar laws <br/>
<a id="pl.78.8"></a><var>78.8</var>of another state, will be treated as an entity similar to its treatment for federal income <br/>
<a id="pl.78.9"></a><var>78.9</var>tax purposes.<br/>
<a id="pl.78.10"></a><var>78.10</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2015.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.78.11"></a><var>78.11</var>    Sec. 6. Minnesota Statutes 2012, section 302A.011, is amended by adding a <br/>
<a id="pl.78.12"></a><var>78.12</var>subdivision to read:<br/>
<a id="pl.78.13"></a><var>78.13</var>    Subd. 67. <b>Converting corporation.</b> "Converting corporation" means a converting <br/>
<a id="pl.78.14"></a><var>78.14</var>organization that is a corporation.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.78.15"></a><var>78.15</var>    Sec. 7. Minnesota Statutes 2012, section 302A.011, is amended by adding a <br/>
<a id="pl.78.16"></a><var>78.16</var>subdivision to read:<br/>
<a id="pl.78.17"></a><var>78.17</var>    Subd. 68. <b>Organizational documents.</b> "Organizational documents" means:<br/>
<a id="pl.78.18"></a><var>78.18</var>(1) for a domestic or foreign general partnership, its partnership agreement;<br/>
<a id="pl.78.19"></a><var>78.19</var>(2) for a limited partnership or foreign limited partnership, its certificate of limited <br/>
<a id="pl.78.20"></a><var>78.20</var>partnership and partnership agreement;<br/>
<a id="pl.78.21"></a><var>78.21</var>(3) for a domestic or foreign limited liability company, its certificate or articles <br/>
<a id="pl.78.22"></a><var>78.22</var>of organization and operating agreement, or comparable documents as provided in its <br/>
<a id="pl.78.23"></a><var>78.23</var>governing statute;<br/>
<a id="pl.78.24"></a><var>78.24</var>(4) for a business trust, its agreement of trust and declaration of trust;<br/>
<a id="pl.78.25"></a><var>78.25</var>(5) for a domestic or foreign corporation for profit, its articles of incorporation, <br/>
<a id="pl.78.26"></a><var>78.26</var>bylaws, and other agreements among its shareholders that are authorized by its governing <br/>
<a id="pl.78.27"></a><var>78.27</var>statute, or comparable documents as provided in its governing statute; and<br/>
<a id="pl.78.28"></a><var>78.28</var>(6) for any other organization, the basic agreements or other documents that create <br/>
<a id="pl.78.29"></a><var>78.29</var>the organization and determine its internal governance and the relations among the persons <br/>
<a id="pl.78.30"></a><var>78.30</var>that own it, have an interest in it, or are members of it.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.78.31"></a><var>78.31</var>    Sec. 8. Minnesota Statutes 2012, section 302A.011, is amended by adding a <br/>
<a id="pl.78.32"></a><var>78.32</var>subdivision to read:<br/>
<a id="pl.79.1"></a><var>79.1</var>    Subd. 69. <b>Personal liability.</b> "Personal liability" means liability for a debt, <br/>
<a id="pl.79.2"></a><var>79.2</var>obligation, or other liability of an organization that is imposed on a person that co-owns, <br/>
<a id="pl.79.3"></a><var>79.3</var>has an interest in, or is a member of the organization.<br/>
<a id="pl.79.4"></a><var>79.4</var>(1) by the governing statute solely by reason of the person co-owning, having an <br/>
<a id="pl.79.5"></a><var>79.5</var>interest in, or being a member of the organization; or <br/>
<a id="pl.79.6"></a><var>79.6</var>(2) by the organization's organizational documents under a provision of the governing <br/>
<a id="pl.79.7"></a><var>79.7</var>statute authorizing those documents to make one or more specified persons liable for all or <br/>
<a id="pl.79.8"></a><var>79.8</var>specified debts, obligations, or other liabilities of the organization solely by reason of the <br/>
<a id="pl.79.9"></a><var>79.9</var>person or persons co-owning, having an interest in, or being a member of the organization.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.79.10"></a><var>79.10</var>    Sec. 9. Minnesota Statutes 2012, section 302A.115, subdivision 1, is amended to read:<br/>
<a id="pl.79.11"></a><var>79.11</var>    Subdivision 1. <b>Requirements; prohibitions.</b> The corporate name:<br/>
<a id="pl.79.12"></a><var>79.12</var>(a) Shall be in the English language or in any other language expressed in English <br/>
<a id="pl.79.13"></a><var>79.13</var>letters or characters;<br/>
<a id="pl.79.14"></a><var>79.14</var>(b) Shall contain the word "corporation," "incorporated," or "limited," or shall <br/>
<a id="pl.79.15"></a><var>79.15</var>contain an abbreviation of one or more of these words, or the word "company" or the <br/>
<a id="pl.79.16"></a><var>79.16</var>abbreviation "Co." if that word or abbreviation is not immediately preceded by the word <br/>
<a id="pl.79.17"></a><var>79.17</var>"and" or the character "&amp;";<br/>
<a id="pl.79.18"></a><var>79.18</var>(c) Shall not contain a word or phrase that indicates or implies that it is incorporated <br/>
<a id="pl.79.19"></a><var>79.19</var>for a purpose other than a legal business purpose;<br/>
<a id="pl.79.20"></a><var>79.20</var>(d) Shall be distinguishable upon the records in the Office of the Secretary of <br/>
<a id="pl.79.21"></a><var>79.21</var>State from the name of each domestic corporation, limited partnership, limited liability <br/>
<a id="pl.79.22"></a><var>79.22</var>partnership, and limited liability company, whether profit or nonprofit, and each foreign <br/>
<a id="pl.79.23"></a><var>79.23</var>corporation, limited partnership, limited liability partnership, and limited liability company <br/>
<a id="pl.79.24"></a><var>79.24</var>on file, authorized or registered to do business in this state at the time of filing, whether <br/>
<a id="pl.79.25"></a><var>79.25</var>profit or nonprofit, and each name the right to which is, at the time of incorporation, <br/>
<a id="pl.79.26"></a><var>79.26</var>reserved as provided for in sections 
         <statute_ref>5.35</statute_ref>, 
         <statute_ref>302A.117</statute_ref>, 
         <statute_ref>321.0109</statute_ref>, 
         <statute_ref>322B.125</statute_ref>, 322C.0109, or <br/>
<statute_ref><a id="pl.79.27"></a><var>79.27</var>333.001
         </statute_ref> to 
         <statute_ref>333.54</statute_ref>, unless there is filed with the articles one of the following: <br/>
<a id="pl.79.28"></a><var>79.28</var>(1) The written consent of the domestic corporation, limited partnership, limited <br/>
<a id="pl.79.29"></a><var>79.29</var>liability partnership, or limited liability company, or the foreign corporation, limited <br/>
<a id="pl.79.30"></a><var>79.30</var>partnership, limited liability partnership, or limited liability company authorized or <br/>
<a id="pl.79.31"></a><var>79.31</var>registered to do business in this state or the holder of a reserved name or a name filed by <br/>
<a id="pl.79.32"></a><var>79.32</var>or registered with the secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref> having a name <br/>
<a id="pl.79.33"></a><var>79.33</var>that is not distinguishable; <br/>
<a id="pl.79.34"></a><var>79.34</var>(2) A certified copy of a final decree of a court in this state establishing the prior <br/>
<a id="pl.79.35"></a><var>79.35</var>right of the applicant to the use of the name in this state; or<br/>
<a id="pl.80.1"></a><var>80.1</var>(3) The applicant's affidavit that the domestic or foreign corporation, limited <br/>
<a id="pl.80.2"></a><var>80.2</var>partnership, or limited liability company with the name that is not distinguishable has <br/>
<a id="pl.80.3"></a><var>80.3</var>been incorporated or on file in this state for at least three years prior to the affidavit, if it <br/>
<a id="pl.80.4"></a><var>80.4</var>is a domestic corporation, limited partnership, or limited liability company, or has been <br/>
<a id="pl.80.5"></a><var>80.5</var>authorized or registered to do business in this state for at least three years prior to the <br/>
<a id="pl.80.6"></a><var>80.6</var>affidavit, if it is a foreign corporation, limited partnership, or limited liability company, <br/>
<a id="pl.80.7"></a><var>80.7</var>or that the holder of a name filed or registered with the secretary of state under sections <br/>
<statute_ref><a id="pl.80.8"></a><var>80.8</var>333.001
         </statute_ref> to 
         <statute_ref>333.54</statute_ref> filed or registered that name at least three years prior to the affidavit; <br/>
<a id="pl.80.9"></a><var>80.9</var>that the domestic or foreign corporation, limited partnership, or limited liability company <br/>
<a id="pl.80.10"></a><var>80.10</var>or holder has not during the three-year period before the affidavit filed any document with <br/>
<a id="pl.80.11"></a><var>80.11</var>the secretary of state; that the applicant has mailed written notice to the domestic or <br/>
<a id="pl.80.12"></a><var>80.12</var>foreign corporation, limited partnership, or limited liability company or the holder of a <br/>
<a id="pl.80.13"></a><var>80.13</var>name filed or registered with the secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref> by <br/>
<a id="pl.80.14"></a><var>80.14</var>certified mail, return receipt requested, properly addressed to the registered office of the <br/>
<a id="pl.80.15"></a><var>80.15</var>domestic or foreign corporation or limited liability company or in care of the agent of the <br/>
<a id="pl.80.16"></a><var>80.16</var>limited partnership, or the address of the holder of a name filed or registered with the <br/>
<a id="pl.80.17"></a><var>80.17</var>secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref>, shown in the records of the secretary <br/>
<a id="pl.80.18"></a><var>80.18</var>of state, stating that the applicant intends to use a name that is not distinguishable and the <br/>
<a id="pl.80.19"></a><var>80.19</var>notice has been returned to the applicant as undeliverable to the addressee domestic or <br/>
<a id="pl.80.20"></a><var>80.20</var>foreign corporation, limited partnership, limited liability company, or holder of a name <br/>
<a id="pl.80.21"></a><var>80.21</var>filed or registered with the secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref>; that the <br/>
<a id="pl.80.22"></a><var>80.22</var>applicant, after diligent inquiry, has been unable to find any telephone listing for the <br/>
<a id="pl.80.23"></a><var>80.23</var>domestic or foreign corporation, limited partnership, or limited liability company with <br/>
<a id="pl.80.24"></a><var>80.24</var>the name that is not distinguishable in the county in which is located the registered office <br/>
<a id="pl.80.25"></a><var>80.25</var>of the domestic or foreign corporation, limited partnership, or limited liability company <br/>
<a id="pl.80.26"></a><var>80.26</var>shown in the records of the secretary of state or has been unable to find any telephone <br/>
<a id="pl.80.27"></a><var>80.27</var>listing for the holder of a name filed or registered with the secretary of state under sections <br/>
<statute_ref><a id="pl.80.28"></a><var>80.28</var>333.001
         </statute_ref> to 
         <statute_ref>333.54</statute_ref> in the county in which is located the address of the holder shown in <br/>
<a id="pl.80.29"></a><var>80.29</var>the records of the secretary of state; and that the applicant has no knowledge that the <br/>
<a id="pl.80.30"></a><var>80.30</var>domestic or foreign corporation, limited partnership, limited liability company, or holder <br/>
<a id="pl.80.31"></a><var>80.31</var>of a name filed or registered with the secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref> is <br/>
<a id="pl.80.32"></a><var>80.32</var>currently engaged in business in this state. <br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.80.33"></a><var>80.33</var>    Sec. 10. Minnesota Statutes 2012, section 302A.681, is amended to read:<br/>
<a id="pl.80.34"></a><var>80.34</var><b>302A.681 CONVERSION</b><b> OF CORPORATIONS AND LIMITED LIABILITY </b><br/>
<a id="pl.80.35"></a><var>80.35</var><b>COMPANIES</b><b>.</b><br/>
<a id="pl.81.1"></a><var>81.1</var>    Subdivision 1. <b>Conversions authorized</b><b> Authorization</b><b>.</b> A corporation may <br/>
<a id="pl.81.2"></a><var>81.2</var>become a domestic limited liability company, and a domestic limited liability company <br/>
<a id="pl.81.3"></a><var>81.3</var>may become a An organization, other than a corporation, a foreign corporation, a nonprofit <br/>
<a id="pl.81.4"></a><var>81.4</var>corporation, or an organization owning assets irrevocably dedicated to a charitable <br/>
<a id="pl.81.5"></a><var>81.5</var>purpose, may convert to a corporation, and a corporation may convert to an organization <br/>
<a id="pl.81.6"></a><var>81.6</var>other than a foreign corporation, in each case pursuant to a plan of conversion. approved <br/>
<a id="pl.81.7"></a><var>81.7</var>in the manner provided in sections 302A.681 to 302A.692, if:<br/>
<a id="pl.81.8"></a><var>81.8</var>(1) the other organization's governing statute authorizes the conversion; and<br/>
<a id="pl.81.9"></a><var>81.9</var>(2) the other organization complies with its governing statute and organizational <br/>
<a id="pl.81.10"></a><var>81.10</var>documents in effecting the conversion.<br/>
<a id="pl.81.11"></a><var>81.11</var>    Subd. 2. <b>Certain definitions.</b> (a) For purposes of sections 
<statute_ref>302A.681</statute_ref> to 
<statute_ref>302A.691</statute_ref>, <br/>
<a id="pl.81.12"></a><var>81.12</var>the words, terms, and phrases in paragraphs (b) to (h) have the meanings given them. <br/>
<a id="pl.81.13"></a><var>81.13</var>(b) "Articles of organization" has the same meaning as it does under section <br/>
<a id="pl.81.14"></a><var>81.14</var><statute_ref>322B.03, subdivision 6</statute_ref>. <br/>
<a id="pl.81.15"></a><var>81.15</var>(c) "Board of governors" has the same meaning as it does under section 
<statute_ref>322B.03, <br/>
<a id="pl.81.16"></a><var>81.16</var>subdivision 7
</statute_ref>. <br/>
<a id="pl.81.17"></a><var>81.17</var>(d) "Class," when used with reference to membership interests, has the same <br/>
<a id="pl.81.18"></a><var>81.18</var>meaning as it does under section 
<statute_ref>322B.03, subdivision 10</statute_ref>. <br/>
<a id="pl.81.19"></a><var>81.19</var>(e) "Governor" has the same meaning as it does under section 
<statute_ref>322B.03, subdivision <br/>
<a id="pl.81.20"></a><var>81.20</var>24
</statute_ref>. <br/>
<a id="pl.81.21"></a><var>81.21</var>(f) "Member" has the same meaning as it does under section 
<statute_ref>322B.03, subdivision 30</statute_ref>. <br/>
<a id="pl.81.22"></a><var>81.22</var>(g) "Membership interest" has the same meaning as it does under section 
<statute_ref>322B.03, <br/>
<a id="pl.81.23"></a><var>81.23</var>subdivision 31
</statute_ref>. <br/>
<a id="pl.81.24"></a><var>81.24</var>(h) "Series," when used with reference to membership interests, has the same <br/>
<a id="pl.81.25"></a><var>81.25</var>meaning as it does under section 
<statute_ref>322B.03, subdivision 44</statute_ref>. <br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.81.26"></a><var>81.26</var>    Sec. 11. Minnesota Statutes 2012, section 302A.683, is amended to read:<br/>
<a id="pl.81.27"></a><var>81.27</var><b>302A.683 PLAN OF CONVERSION.</b><br/>
<a id="pl.81.28"></a><var>81.28</var>A plan of conversion must contain:<br/>
<a id="pl.81.29"></a><var>81.29</var>(1) the name, form, and jurisdiction of the governing statute of the converting <br/>
<a id="pl.81.30"></a><var>81.30</var>organization before conversion;<br/>
<a id="pl.81.31"></a><var>81.31</var>(2) the name, form, and jurisdiction of the governing statute of the converted <br/>
<a id="pl.81.32"></a><var>81.32</var>organization after conversion;<br/>
<a id="pl.81.33"></a><var>81.33</var>(3) whether the converted organization is a corporation or a limited liability company;<br/>
<a id="pl.81.34"></a><var>81.34</var>(4) the terms and conditions of the proposed conversion;,<br/>
<a id="pl.82.1"></a><var>82.1</var>(5) including the manner and basis of for converting each ownership interest in the <br/>
<a id="pl.82.2"></a><var>82.2</var>converting organization into ownership interests in the converted converting organization <br/>
<a id="pl.82.3"></a><var>82.3</var>or, in whole or in part, into money or other property; into any combination of money, <br/>
<a id="pl.82.4"></a><var>82.4</var>interests in the converted organization, and other consideration;<br/>
<a id="pl.82.5"></a><var>82.5</var>(6) a copy of the proposed articles of incorporation or articles of organization (4) the <br/>
<a id="pl.82.6"></a><var>82.6</var>organizational documents of the converted organization; and<br/>
<a id="pl.82.7"></a><var>82.7</var>(7) (5) any other provisions with respect to the proposed conversion that are deemed <br/>
<a id="pl.82.8"></a><var>82.8</var>necessary or desirable.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.82.9"></a><var>82.9</var>    Sec. 12. Minnesota Statutes 2012, section 302A.685, is amended to read:<br/>
<a id="pl.82.10"></a><var>82.10</var><b>302A.685 </b><b>PLAN APPROVAL</b><b> ACTION ON PLAN OF CONVERSION BY </b><br/>
<a id="pl.82.11"></a><var>82.11</var><b>CONVERTING CORPORATION</b><b>.</b><br/>
<a id="pl.82.12"></a><var>82.12</var>    Subdivision 1. <b>Board approval; notice to owners.</b> A If the converting organization <br/>
<a id="pl.82.13"></a><var>82.13</var>is a corporation, a resolution containing the plan of conversion must be approved by the <br/>
<a id="pl.82.14"></a><var>82.14</var>affirmative vote of a majority of the directors or governors present at a meeting of the <br/>
<a id="pl.82.15"></a><var>82.15</var>converting corporation's board of directors or the board of governors of the converting <br/>
<a id="pl.82.16"></a><var>82.16</var>organization and must then be submitted at a regular or a special meeting to the owners<br/>
<a id="pl.82.17"></a><var>82.17</var> of the converting organization corporation's shareholders. Written notice must be given <br/>
<a id="pl.82.18"></a><var>82.18</var>to every owner shareholder of the converting organization corporation, whether or not <br/>
<a id="pl.82.19"></a><var>82.19</var>entitled to vote at the meeting, not less than 14 days nor more than 60 days before <br/>
<a id="pl.82.20"></a><var>82.20</var>the meeting, in the manner provided in section 
         <statute_ref>302A.435</statute_ref> for notice of a meeting of <br/>
<a id="pl.82.21"></a><var>82.21</var>shareholders or in the manner provided in section 
<statute_ref>322B.34</statute_ref> for notice of a meeting of <br/>
<a id="pl.82.22"></a><var>82.22</var>members. The written notice must state that a purpose of the meeting is to consider the <br/>
<a id="pl.82.23"></a><var>82.23</var>proposed plan of conversion. A copy or short description of the plan of conversion must <br/>
<a id="pl.82.24"></a><var>82.24</var>be included in or enclosed with the notice. <br/>
<a id="pl.82.25"></a><var>82.25</var>    Subd. 2. <b>Approval by </b><b>owners</b><b> shareholders</b><b>.</b> At the meeting, a vote of the owners<br/>
<a id="pl.82.26"></a><var>82.26</var> shareholders must be taken on the proposed plan. The plan of conversion is adopted when <br/>
<a id="pl.82.27"></a><var>82.27</var>approved by the affirmative vote of the holders of a majority of the voting power of all <br/>
<a id="pl.82.28"></a><var>82.28</var>shares or membership interests entitled to vote. A class or series of shares or membership <br/>
<a id="pl.82.29"></a><var>82.29</var>interests is entitled to vote as a class or series on the approval of the plan.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.82.30"></a><var>82.30</var>    Sec. 13. <b>[302A.6871] FILINGS REQUIRED BY CONVERTING </b><br/>
<a id="pl.82.31"></a><var>82.31</var><b>CORPORATION.</b><br/>
<a id="pl.82.32"></a><var>82.32</var>After a plan of conversion is approved by a converting corporation, the converting <br/>
<a id="pl.82.33"></a><var>82.33</var>corporation must cause articles of conversion to be filed with the secretary of state. The <br/>
<a id="pl.83.1"></a><var>83.1</var>articles of conversion must be signed on behalf of the converting corporation and must <br/>
<a id="pl.83.2"></a><var>83.2</var>include:<br/>
<a id="pl.83.3"></a><var>83.3</var>(1) the plan of conversion;<br/>
<a id="pl.83.4"></a><var>83.4</var>(2) a statement that the converting corporation has been converted into the converted <br/>
<a id="pl.83.5"></a><var>83.5</var>organization;<br/>
<a id="pl.83.6"></a><var>83.6</var>(3) the name and form of the converted organization and the jurisdiction of its <br/>
<a id="pl.83.7"></a><var>83.7</var>governing statute;<br/>
<a id="pl.83.8"></a><var>83.8</var>(4) a statement that the conversion was approved as required by this chapter;<br/>
<a id="pl.83.9"></a><var>83.9</var>(5) a statement that the conversion was approved as required by the governing <br/>
<a id="pl.83.10"></a><var>83.10</var>statute of the converted organization; and<br/>
<a id="pl.83.11"></a><var>83.11</var>(6) if the converted organization is a foreign organization not authorized to transact <br/>
<a id="pl.83.12"></a><var>83.12</var>business in this state, the street address of an office which the secretary of state may use <br/>
<a id="pl.83.13"></a><var>83.13</var>for the purposes of section 302A.691, subdivision 3.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.83.14"></a><var>83.14</var>    Sec. 14. <b>[302A.688] FILINGS REQUIRED WHEN CORPORATION IS </b><br/>
<a id="pl.83.15"></a><var>83.15</var><b>CONVERTED ORGANIZATION.</b><br/>
<a id="pl.83.16"></a><var>83.16</var>If the converting organization is not a corporation, the converting organization <br/>
<a id="pl.83.17"></a><var>83.17</var>must cause articles of conversion to be filed with the secretary of state. The articles of <br/>
<a id="pl.83.18"></a><var>83.18</var>conversion must be signed on behalf of the converting organization and must include, in <br/>
<a id="pl.83.19"></a><var>83.19</var>addition to the information required by section 302A.111, subdivision 1:<br/>
<a id="pl.83.20"></a><var>83.20</var>(1) the plan of conversion;<br/>
<a id="pl.83.21"></a><var>83.21</var>(2) a statement that the converted organization has been converted from the <br/>
<a id="pl.83.22"></a><var>83.22</var>converting organization;<br/>
<a id="pl.83.23"></a><var>83.23</var>(3) the name and form of the converting organization and the jurisdiction of its <br/>
<a id="pl.83.24"></a><var>83.24</var>governing statute; and<br/>
<a id="pl.83.25"></a><var>83.25</var>(4) a statement that the conversion was approved as required by the governing <br/>
<a id="pl.83.26"></a><var>83.26</var>statute of the converting organization.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.83.27"></a><var>83.27</var>    Sec. 15. Minnesota Statutes 2012, section 302A.689, is amended to read:<br/>
<a id="pl.83.28"></a><var>83.28</var><b>302A.689 ABANDONMENT OF CONVERSION.</b><br/>
<a id="pl.83.29"></a><var>83.29</var>    Subdivision 1. <b>By shareholders or plan.</b> After a plan of conversion has been <br/>
<a id="pl.83.30"></a><var>83.30</var>approved by the owners shareholders entitled to vote on the approval of the plan as <br/>
<a id="pl.83.31"></a><var>83.31</var>provided in section 
         <statute_ref>302A.685</statute_ref>, and before the effective date of the plan, it may be <br/>
<a id="pl.83.32"></a><var>83.32</var>abandoned by a converting corporation: <br/>
<a id="pl.83.33"></a><var>83.33</var>(1) if the owners of the converting organization shareholders entitled to vote on the <br/>
<a id="pl.83.34"></a><var>83.34</var>approval of the plan as provided in section 
         <statute_ref>302A.685</statute_ref> have approved the abandonment at a <br/>
<a id="pl.84.1"></a><var>84.1</var>meeting by the affirmative vote of the holders of a majority of the voting power of the <br/>
<a id="pl.84.2"></a><var>84.2</var>shares or membership interests entitled to vote; <br/>
<a id="pl.84.3"></a><var>84.3</var>(2) if the plan itself provides for abandonment and all conditions for abandonment <br/>
<a id="pl.84.4"></a><var>84.4</var>set forth in the plan are met; or<br/>
<a id="pl.84.5"></a><var>84.5</var>(3) pursuant to subdivision 2.<br/>
<a id="pl.84.6"></a><var>84.6</var>    Subd. 2. <b>By board.</b> A plan of conversion may be abandoned by a converting <br/>
<a id="pl.84.7"></a><var>84.7</var>corporation, before the effective date of the plan, by a resolution of the board of directors <br/>
<a id="pl.84.8"></a><var>84.8</var>or the board of governors of the converting organization abandoning the plan of <br/>
<a id="pl.84.9"></a><var>84.9</var>conversion corporation approved by the affirmative vote of a majority of the directors or <br/>
<a id="pl.84.10"></a><var>84.10</var>governors present.<br/>
<a id="pl.84.11"></a><var>84.11</var>    Subd. 3. <b>Filing of articles.</b> If articles of conversion have been filed with the <br/>
<a id="pl.84.12"></a><var>84.12</var>secretary of state, but have not yet become effective, the converting organization shall<br/>
<a id="pl.84.13"></a><var>84.13</var> corporation must file with the secretary of state articles of abandonment that contain:<br/>
<a id="pl.84.14"></a><var>84.14</var>(1) the name of the converting organization corporation;<br/>
<a id="pl.84.15"></a><var>84.15</var>(2) the provision of this section under which the plan is abandoned; and<br/>
<a id="pl.84.16"></a><var>84.16</var>(3) if the plan is abandoned under subdivision 2, the text of the resolution <br/>
<a id="pl.84.17"></a><var>84.17</var>abandoning the plan.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.84.18"></a><var>84.18</var>    Sec. 16. Minnesota Statutes 2012, section 302A.691, is amended to read:<br/>
<a id="pl.84.19"></a><var>84.19</var><b>302A.691 EFFECTIVE DATE OR TIME OF CONVERSION; EFFECT.</b><br/>
<a id="pl.84.20"></a><var>84.20</var>    Subdivision 1. <b>Effective date or time.</b> A conversion is effective when the articles <br/>
<a id="pl.84.21"></a><var>84.21</var>of conversion are filed with the secretary of state or on a later date or at a later time <br/>
<a id="pl.84.22"></a><var>84.22</var>specified in the articles of conversion.<br/>
<a id="pl.84.23"></a><var>84.23</var>    Subd. 2. <b>Effect on organization.</b> (a) A converted organization is for all purposes the <br/>
<a id="pl.84.24"></a><var>84.24</var>same organization as the converting organization, having been incorporated or, organized, <br/>
<a id="pl.84.25"></a><var>84.25</var>or formed on the date that the converting organization was originally incorporated or,<br/>
<a id="pl.84.26"></a><var>84.26</var> organized, or formed.<br/>
<a id="pl.84.27"></a><var>84.27</var>(b) When a conversion becomes effective:<br/>
<a id="pl.84.28"></a><var>84.28</var>(1) if the converted organization is a corporation, the converted organization has <br/>
<a id="pl.84.29"></a><var>84.29</var>all the rights, privileges, immunities, and powers, and is subject to all the duties and <br/>
<a id="pl.84.30"></a><var>84.30</var>liabilities, of a corporation incorporated under this chapter;<br/>
<a id="pl.84.31"></a><var>84.31</var>(2) if the converted organization is a limited liability company, the converted <br/>
<a id="pl.84.32"></a><var>84.32</var>organization has all the rights, privileges, immunities, and powers, and is subject to all the <br/>
<a id="pl.84.33"></a><var>84.33</var>duties and liabilities, of a limited liability company organized under chapter 322B;<br/>
<a id="pl.84.34"></a><var>84.34</var>(3) all property owned by the converting organization remains vested in the <br/>
<a id="pl.84.35"></a><var>84.35</var>converted organization;<br/>
<a id="pl.85.1"></a><var>85.1</var>(4) (2) all debts, liabilities, and other obligations of the converting organization <br/>
<a id="pl.85.2"></a><var>85.2</var>continue as obligations of the converted organization;<br/>
<a id="pl.85.3"></a><var>85.3</var>(5) (3) an action or proceeding pending by or against the converting organization <br/>
<a id="pl.85.4"></a><var>85.4</var>may be continued as if the conversion had not occurred; and<br/>
<a id="pl.85.5"></a><var>85.5</var>(6) (4) all rights, privileges, immunities, and powers of the converting organization <br/>
<a id="pl.85.6"></a><var>85.6</var>remain vested in the converted organization.<br/>
<a id="pl.85.7"></a><var>85.7</var>    Subd. 3. <b>Effect on shareholders or members.</b><b> Foreign organization.</b> When <br/>
<a id="pl.85.8"></a><var>85.8</var>a conversion becomes effective, each share or membership interest in the converting <br/>
<a id="pl.85.9"></a><var>85.9</var>organization is deemed to be converted into shares or membership interests in the converted <br/>
<a id="pl.85.10"></a><var>85.10</var>organization or, in whole or in part, into money or other property to be received under the <br/>
<a id="pl.85.11"></a><var>85.11</var>plan by the shareholders or the members, subject to any dissenters' rights under section <br/>
<a id="pl.85.12"></a><var>85.12</var><statute_ref>302A.471</statute_ref>, in the case of shareholders of the converting organization, or section 
<statute_ref>322B.383</statute_ref>, <br/>
<a id="pl.85.13"></a><var>85.13</var>in the case of members of the converting organization. A converted organization that is a <br/>
<a id="pl.85.14"></a><var>85.14</var>foreign organization consents to the jurisdiction of the courts of this state to enforce any <br/>
<a id="pl.85.15"></a><var>85.15</var>debt, obligation, or other liability for which the converting corporation is liable if, before <br/>
<a id="pl.85.16"></a><var>85.16</var>the conversion, the converting corporation was subject to suit in this state on the debt, <br/>
<a id="pl.85.17"></a><var>85.17</var>obligation, or other liability. A converted organization that is a foreign organization and <br/>
<a id="pl.85.18"></a><var>85.18</var>not authorized to transact business in this state appoints the secretary of state as its agent <br/>
<a id="pl.85.19"></a><var>85.19</var>for service of process for purposes of enforcing a debt, obligation, or other liability under <br/>
<a id="pl.85.20"></a><var>85.20</var>this subdivision. Service on the secretary of state under this subdivision must be made in <br/>
<a id="pl.85.21"></a><var>85.21</var>the same manner and has the same consequences as in section 5.25, subdivisions 4 and 5.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.85.22"></a><var>85.22</var>    Sec. 17. <b>[302A.692] RESTRICTIONS ON APPROVAL OF CONVERSIONS.</b><br/>
<a id="pl.85.23"></a><var>85.23</var>    Subdivision 1. <b>Personal liability of shareholder.</b> If a shareholder of a converting <br/>
<a id="pl.85.24"></a><var>85.24</var>corporation will have personal liability with respect to a converted organization, approval <br/>
<a id="pl.85.25"></a><var>85.25</var>or amendment of a plan of conversion is ineffective without the consent of the shareholder, <br/>
<a id="pl.85.26"></a><var>85.26</var>unless:<br/>
<a id="pl.85.27"></a><var>85.27</var>(1) a shareholder control agreement of the converting corporation provides for <br/>
<a id="pl.85.28"></a><var>85.28</var>approval of a conversion with the consent of fewer than all the members; and<br/>
<a id="pl.85.29"></a><var>85.29</var>(2) the shareholder has consented to the provision of the shareholder control <br/>
<a id="pl.85.30"></a><var>85.30</var>agreement.<br/>
<a id="pl.85.31"></a><var>85.31</var>    Subd. 2. <b>Consent.</b> A shareholder does not give the consent required by subdivision <br/>
<a id="pl.85.32"></a><var>85.32</var>1 merely by consenting to a provision of a shareholder control agreement that permits <br/>
<a id="pl.85.33"></a><var>85.33</var>the shareholder control agreement to be amended with the consent of fewer than all <br/>
<a id="pl.85.34"></a><var>85.34</var>shareholders.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.86.1"></a><var>86.1</var>    Sec. 18. Minnesota Statutes 2012, section 308A.121, subdivision 1, is amended to read:<br/>
<a id="pl.86.2"></a><var>86.2</var>    Subdivision 1. <b>Name.</b> The name of a cooperative must distinguish the cooperative <br/>
<a id="pl.86.3"></a><var>86.3</var>upon the records in the Office of the Secretary of State from the name of a domestic <br/>
<a id="pl.86.4"></a><var>86.4</var>corporation, whether profit or nonprofit, or a limited partnership, or a foreign corporation <br/>
<a id="pl.86.5"></a><var>86.5</var>or a limited partnership, whether profit or nonprofit, a limited liability company, whether <br/>
<a id="pl.86.6"></a><var>86.6</var>domestic or foreign, a limited liability partnership, whether domestic or foreign, on file, <br/>
<a id="pl.86.7"></a><var>86.7</var>authorized or registered to do business in this state at the time of filing or a name the <br/>
<a id="pl.86.8"></a><var>86.8</var>right to which is, at the time of incorporation, reserved or provided for in sections 
         <statute_ref>5.35</statute_ref>, <br/>
<statute_ref><a id="pl.86.9"></a><var>86.9</var>302A.117
         </statute_ref>, 
         <statute_ref>317A.117</statute_ref>, 
         <statute_ref>321.0109</statute_ref>, 
         <statute_ref>322B.125</statute_ref>, 322C.0109, or 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref>. <br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.86.10"></a><var>86.10</var>    Sec. 19. Minnesota Statutes 2012, section 308B.801, subdivision 1, is amended to read:<br/>
<a id="pl.86.11"></a><var>86.11</var>    Subdivision 1. <b>Authorization.</b> Unless otherwise prohibited, cooperatives organized <br/>
<a id="pl.86.12"></a><var>86.12</var>under the laws of this state, including cooperatives organized under this chapter or chapter <br/>
<a id="pl.86.13"></a><var>86.13</var>308A, may merge or consolidate with each other, a Minnesota limited liability company <br/>
<a id="pl.86.14"></a><var>86.14</var>under the provisions of section 
         <statute_ref>322B.755</statute_ref> or sections 322C.1001 to 322C.1015, or <br/>
<a id="pl.86.15"></a><var>86.15</var>other business entities organized under the laws of another state by complying with the <br/>
<a id="pl.86.16"></a><var>86.16</var>provisions of this section and the law of the state where the surviving or new business <br/>
<a id="pl.86.17"></a><var>86.17</var>entity will exist. A cooperative may not merge or consolidate with a business entity <br/>
<a id="pl.86.18"></a><var>86.18</var>organized under the laws of this state, other than a cooperative organized under chapter <br/>
<a id="pl.86.19"></a><var>86.19</var>308A, unless the law governing the business entity expressly authorizes merger or <br/>
<a id="pl.86.20"></a><var>86.20</var>consolidation with a cooperative. This subdivision does not authorize a foreign business <br/>
<a id="pl.86.21"></a><var>86.21</var>entity to do any act not authorized by the law governing the foreign business entity.  <br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.86.22"></a><var>86.22</var>    Sec. 20. Minnesota Statutes 2012, section 308B.801, subdivision 2, is amended to read:<br/>
<a id="pl.86.23"></a><var>86.23</var>    Subd. 2. <b>Plan.</b> To initiate a merger or consolidation of a cooperative, a written plan <br/>
<a id="pl.86.24"></a><var>86.24</var>of merger or consolidation shall be prepared by the board or by a committee selected by <br/>
<a id="pl.86.25"></a><var>86.25</var>the board to prepare a plan. The plan shall state:<br/>
<a id="pl.86.26"></a><var>86.26</var>(1) the names of the constituent domestic cooperatives, the name of any Minnesota <br/>
<a id="pl.86.27"></a><var>86.27</var>limited liability company that is a party to the merger, to the extent authorized under <br/>
<a id="pl.86.28"></a><var>86.28</var>section 
         <statute_ref>322B.755</statute_ref> or sections 322C.1001 to 322C.1005 and 322C.1015, and any foreign <br/>
<a id="pl.86.29"></a><var>86.29</var>business entities;  <br/>
<a id="pl.86.30"></a><var>86.30</var>(2) the name of the surviving or new domestic cooperative, Minnesota limited liability <br/>
<a id="pl.86.31"></a><var>86.31</var>company as required by section 
         <statute_ref>322B.755</statute_ref> or 322C.1002, or other foreign business entity;  <br/>
<a id="pl.86.32"></a><var>86.32</var>(3) the manner and basis of converting membership or ownership interests of the <br/>
<a id="pl.86.33"></a><var>86.33</var>constituent domestic cooperatives, the surviving Minnesota limited liability company as <br/>
<a id="pl.86.34"></a><var>86.34</var>provided in section 
         <statute_ref>322B.755</statute_ref> or 322C.1002, or foreign business entities into membership <br/>
<a id="pl.87.1"></a><var>87.1</var>or ownership interests in the surviving or new domestic cooperative, the surviving <br/>
<a id="pl.87.2"></a><var>87.2</var>Minnesota limited liability company as authorized in section 
         <statute_ref>322B.755</statute_ref> or 322C.1002, or <br/>
<a id="pl.87.3"></a><var>87.3</var>foreign business entity;  <br/>
<a id="pl.87.4"></a><var>87.4</var>(4) the terms of the merger or consolidation;<br/>
<a id="pl.87.5"></a><var>87.5</var>(5) the proposed effect of the consolidation or merger on the members and patron <br/>
<a id="pl.87.6"></a><var>87.6</var>members of each constituent domestic cooperative; and<br/>
<a id="pl.87.7"></a><var>87.7</var>(6) for a consolidation, the plan shall contain the articles of the entity or organizational <br/>
<a id="pl.87.8"></a><var>87.8</var>documents to be filed with the state in which the entity is organized or, if the surviving <br/>
<a id="pl.87.9"></a><var>87.9</var>organization is a Minnesota limited liability company, the articles of organization.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.87.10"></a><var>87.10</var>    Sec. 21. Minnesota Statutes 2012, section 308B.801, subdivision 5, is amended to read:<br/>
<a id="pl.87.11"></a><var>87.11</var>    Subd. 5. <b>Effect of merger.</b> For a merger that does not involve a Minnesota limited <br/>
<a id="pl.87.12"></a><var>87.12</var>liability company, the following shall apply to the effect of a merger:<br/>
<a id="pl.87.13"></a><var>87.13</var>(a) After the effective date, the domestic cooperative, Minnesota limited liability <br/>
<a id="pl.87.14"></a><var>87.14</var>company, if party to the plan, and any foreign business entity that is a party to the plan <br/>
<a id="pl.87.15"></a><var>87.15</var>become a single entity. For a merger, the surviving business entity is the business entity <br/>
<a id="pl.87.16"></a><var>87.16</var>designated in the plan. For a consolidation, the new domestic cooperative, the Minnesota <br/>
<a id="pl.87.17"></a><var>87.17</var>limited liability company, if any, and any foreign business entity is the business entity <br/>
<a id="pl.87.18"></a><var>87.18</var>provided for in the plan. Except for the surviving or new domestic cooperative, Minnesota <br/>
<a id="pl.87.19"></a><var>87.19</var>limited liability company, or foreign business entity, the separate existence of each merged <br/>
<a id="pl.87.20"></a><var>87.20</var>or consolidated domestic or foreign business entity that is a party to the plan ceases on the <br/>
<a id="pl.87.21"></a><var>87.21</var>effective date of the merger or consolidation.<br/>
<a id="pl.87.22"></a><var>87.22</var>(b) The surviving or new domestic cooperative, Minnesota limited liability company, <br/>
<a id="pl.87.23"></a><var>87.23</var>or foreign business entity possesses all of the rights and property of each of the merged <br/>
<a id="pl.87.24"></a><var>87.24</var>or consolidated business entities and is responsible for all their obligations. The title <br/>
<a id="pl.87.25"></a><var>87.25</var>to property of the merged or consolidated domestic cooperative or foreign business <br/>
<a id="pl.87.26"></a><var>87.26</var>entity is vested in the surviving or new domestic cooperative, Minnesota limited liability <br/>
<a id="pl.87.27"></a><var>87.27</var>company, or foreign business entity without reversion or impairment of the title caused <br/>
<a id="pl.87.28"></a><var>87.28</var>by the merger or consolidation.<br/>
<a id="pl.87.29"></a><var>87.29</var>(c) If a merger involves a Minnesota limited liability company, this subdivision is <br/>
<a id="pl.87.30"></a><var>87.30</var>subject to the provisions of section 
         <statute_ref>322B.755</statute_ref> or 322C.1002.  <br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.87.31"></a><var>87.31</var>    Sec. 22. Minnesota Statutes 2012, section 308B.805, subdivision 1, is amended to read:<br/>
<a id="pl.87.32"></a><var>87.32</var>    Subdivision 1. <b>When authorized; contents of plan.</b> (a) For purposes of this section, <br/>
<a id="pl.87.33"></a><var>87.33</var>"subsidiary" means a domestic cooperative, a Minnesota limited liability company, or <br/>
<a id="pl.87.34"></a><var>87.34</var>a foreign cooperative, and "cooperative" means a domestic cooperative. A Minnesota <br/>
<a id="pl.88.1"></a><var>88.1</var>limited liability company may only participate in a merger under this section to the extent <br/>
<a id="pl.88.2"></a><var>88.2</var>authorized under section 
         <statute_ref>322B.755</statute_ref> or 322C.1002. A parent domestic cooperative or a <br/>
<a id="pl.88.3"></a><var>88.3</var>subsidiary that is a domestic cooperative may complete the merger of a subsidiary as <br/>
<a id="pl.88.4"></a><var>88.4</var>provided in this section, provided however, if either the parent or the subsidiary is a business <br/>
<a id="pl.88.5"></a><var>88.5</var>entity organized under the laws of this state, the merger of the subsidiary is not authorized <br/>
<a id="pl.88.6"></a><var>88.6</var>under this section unless the law governing the business entity expressly authorizes merger <br/>
<a id="pl.88.7"></a><var>88.7</var>with a cooperative. A parent cooperative owning at least 90 percent of the outstanding <br/>
<a id="pl.88.8"></a><var>88.8</var>ownership interests of each class and series of a subsidiary directly, or indirectly through <br/>
<a id="pl.88.9"></a><var>88.9</var>related organizations, other than classes or series that, absent this section, would otherwise <br/>
<a id="pl.88.10"></a><var>88.10</var>not be entitled to vote on the merger, may merge the subsidiary into itself or into any other <br/>
<a id="pl.88.11"></a><var>88.11</var>subsidiary at least 90 percent of the outstanding ownership interests of each class and <br/>
<a id="pl.88.12"></a><var>88.12</var>series of which is owned by the parent cooperative directly, or indirectly through related <br/>
<a id="pl.88.13"></a><var>88.13</var>organizations, other than classes or series that, absent this section, would otherwise not be <br/>
<a id="pl.88.14"></a><var>88.14</var>entitled to vote on the merger, without a vote of the members of itself or any subsidiary or <br/>
<a id="pl.88.15"></a><var>88.15</var>may merge itself, or itself and one or more of the subsidiaries, into one of the subsidiaries <br/>
<a id="pl.88.16"></a><var>88.16</var>under this section. A resolution approved by the affirmative vote of a majority of the <br/>
<a id="pl.88.17"></a><var>88.17</var>directors of the parent cooperative present shall set forth a plan of merger that contains:  <br/>
<a id="pl.88.18"></a><var>88.18</var>(1) the name of the subsidiary or subsidiaries, the name of the parent, and the name <br/>
<a id="pl.88.19"></a><var>88.19</var>of the surviving cooperative;<br/>
<a id="pl.88.20"></a><var>88.20</var>(2) the manner and basis of converting the membership interests of the subsidiary or <br/>
<a id="pl.88.21"></a><var>88.21</var>subsidiaries or parent into securities of the parent, subsidiary, or of another cooperative <br/>
<a id="pl.88.22"></a><var>88.22</var>or, in the whole or in part, into money or other property;<br/>
<a id="pl.88.23"></a><var>88.23</var>(3) if the parent is a constituent cooperative but is not the surviving cooperative in <br/>
<a id="pl.88.24"></a><var>88.24</var>the merger, a provision for the pro rata issuance of membership interests of the surviving <br/>
<a id="pl.88.25"></a><var>88.25</var>cooperative to the holders of membership interests of the parent on surrender of any <br/>
<a id="pl.88.26"></a><var>88.26</var>certificates for shares of the parent; and<br/>
<a id="pl.88.27"></a><var>88.27</var>(4) if the surviving cooperative is a subsidiary, a statement of any amendments to the <br/>
<a id="pl.88.28"></a><var>88.28</var>articles of the surviving cooperative that will be part of the merger.<br/>
<a id="pl.88.29"></a><var>88.29</var>(b) If the parent is a constituent cooperative and the surviving cooperative in the <br/>
<a id="pl.88.30"></a><var>88.30</var>merger, it may change its cooperative name, without a vote of its members, by the <br/>
<a id="pl.88.31"></a><var>88.31</var>inclusion of a provision to that effect in the resolution of merger setting forth the plan of <br/>
<a id="pl.88.32"></a><var>88.32</var>merger that is approved by the affirmative vote of a majority of the directors of the parent <br/>
<a id="pl.88.33"></a><var>88.33</var>present. Upon the effective date of the merger, the name of the parent shall be changed.<br/>
<a id="pl.88.34"></a><var>88.34</var>(c) If the parent is a constituent cooperative but is not the surviving cooperative in the <br/>
<a id="pl.88.35"></a><var>88.35</var>merger, the resolution is not effective unless it is also approved by the affirmative vote of the <br/>
<a id="pl.88.36"></a><var>88.36</var>holders of a majority of the voting power of all membership interests of the parent entitled <br/>
<a id="pl.89.1"></a><var>89.1</var>to vote at a regular or special meeting if the parent is a cooperative, or in accordance with <br/>
<a id="pl.89.2"></a><var>89.2</var>the laws under which it is organized if the parent is a foreign business entity or cooperative.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.89.3"></a><var>89.3</var>    Sec. 23. Minnesota Statutes 2012, section 308B.835, subdivision 2, is amended to read:<br/>
<a id="pl.89.4"></a><var>89.4</var>    Subd. 2. <b>Generally.</b> (a) A merger may be abandoned:<br/>
<a id="pl.89.5"></a><var>89.5</var>(1) if the members of each of the constituent domestic cooperatives entitled to vote <br/>
<a id="pl.89.6"></a><var>89.6</var>on the approval of the plan have approved the abandonment at a meeting by the affirmative <br/>
<a id="pl.89.7"></a><var>89.7</var>vote of the holders of a majority of the voting power of the membership interests entitled <br/>
<a id="pl.89.8"></a><var>89.8</var>to vote; if the merger is with a domestic cooperative and a Minnesota limited liability <br/>
<a id="pl.89.9"></a><var>89.9</var>company or foreign business entity, if abandonment is approved in such manner as may be <br/>
<a id="pl.89.10"></a><var>89.10</var>required by section 
         <statute_ref>322B.755</statute_ref> or 322C.1003 for the involvement of a Minnesota limited <br/>
<a id="pl.89.11"></a><var>89.11</var>liability company, or for a foreign business entity by the laws of the state under which <br/>
<a id="pl.89.12"></a><var>89.12</var>the foreign business entity is organized; and the members of a constituent domestic <br/>
<a id="pl.89.13"></a><var>89.13</var>cooperative are not entitled to vote on the approval of the plan, the board of the constituent <br/>
<a id="pl.89.14"></a><var>89.14</var>domestic cooperative has approved the abandonment by the affirmative vote of a majority <br/>
<a id="pl.89.15"></a><var>89.15</var>of the directors present; <br/>
<a id="pl.89.16"></a><var>89.16</var>(2) if the plan itself provides for abandonment and all conditions for abandonment <br/>
<a id="pl.89.17"></a><var>89.17</var>set forth in the plan are met; or<br/>
<a id="pl.89.18"></a><var>89.18</var>(3) under paragraph (b).<br/>
<a id="pl.89.19"></a><var>89.19</var>(b) A plan of merger may be abandoned before the effective date of the plan by a <br/>
<a id="pl.89.20"></a><var>89.20</var>resolution of the board of any constituent domestic cooperative abandoning the plan of <br/>
<a id="pl.89.21"></a><var>89.21</var>merger approved by the affirmative vote of a majority of the directors present, subject <br/>
<a id="pl.89.22"></a><var>89.22</var>to the contract rights of any other person under the plan. If a plan of merger is with a <br/>
<a id="pl.89.23"></a><var>89.23</var>domestic or foreign business entity, the plan of merger may be abandoned before the <br/>
<a id="pl.89.24"></a><var>89.24</var>effective date of the plan by a resolution of the foreign business entity adopted according <br/>
<a id="pl.89.25"></a><var>89.25</var>to the laws of the state under which the foreign business entity is organized, subject to <br/>
<a id="pl.89.26"></a><var>89.26</var>the contract rights of any other person under the plan. If the plan of merger is with <br/>
<a id="pl.89.27"></a><var>89.27</var>a Minnesota limited liability company, the plan of merger may be abandoned by the <br/>
<a id="pl.89.28"></a><var>89.28</var>Minnesota limited liability company as provided in section 
         <statute_ref>322B.755</statute_ref> or 322C.1003, <br/>
<a id="pl.89.29"></a><var>89.29</var>subject to the contractual rights of any other person under the plan. <br/>
<a id="pl.89.30"></a><var>89.30</var>(c) If articles of merger have been filed with the secretary of state, but have not <br/>
<a id="pl.89.31"></a><var>89.31</var>yet become effective, the constituent organizations, in the case of abandonment under <br/>
<a id="pl.89.32"></a><var>89.32</var>paragraph (a), clause (1), the constituent organizations or any one of them, in the case <br/>
<a id="pl.89.33"></a><var>89.33</var>of abandonment under paragraph (a), clause (2), or the abandoning organization in the <br/>
<a id="pl.89.34"></a><var>89.34</var>case of abandonment under paragraph (b), shall file with the secretary of state articles of <br/>
<a id="pl.89.35"></a><var>89.35</var>abandonment that contain:<br/>
<a id="pl.90.1"></a><var>90.1</var>(1) the names of the constituent organizations;<br/>
<a id="pl.90.2"></a><var>90.2</var>(2) the provisions of this section under which the plan is abandoned; and<br/>
<a id="pl.90.3"></a><var>90.3</var>(3) if the plan is abandoned under paragraph (b), the text of the resolution <br/>
<a id="pl.90.4"></a><var>90.4</var>abandoning the plan.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.90.5"></a><var>90.5</var>    Sec. 24. Minnesota Statutes 2012, section 317A.115, subdivision 2, is amended to read:<br/>
<a id="pl.90.6"></a><var>90.6</var>    Subd. 2. <b>Name must be distinguishable.</b> (a) A corporate name must be <br/>
<a id="pl.90.7"></a><var>90.7</var>distinguishable upon the records in the Office of the Secretary of State from the name of a <br/>
<a id="pl.90.8"></a><var>90.8</var>domestic corporation or limited partnership, a foreign corporation or limited partnership, <br/>
<a id="pl.90.9"></a><var>90.9</var>whether profit or nonprofit, a limited liability company, whether domestic or foreign, <br/>
<a id="pl.90.10"></a><var>90.10</var>on file, authorized to do business in this state at the time of filing, a limited liability <br/>
<a id="pl.90.11"></a><var>90.11</var>partnership, whether domestic or foreign, or a name the right to which is, at the time of <br/>
<a id="pl.90.12"></a><var>90.12</var>incorporation, reserved, registered, or provided for in section 
         <statute_ref>5.35</statute_ref>, 
         <statute_ref>317A.117</statute_ref>, 
         <statute_ref>302A.117</statute_ref>, <br/>
<statute_ref><a id="pl.90.13"></a><var>90.13</var>321.0109
         </statute_ref>, 
         <statute_ref>322B.125</statute_ref> or 322C.0109, or sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref>, unless one of the <br/>
<a id="pl.90.14"></a><var>90.14</var>following is filed with the articles: <br/>
<a id="pl.90.15"></a><var>90.15</var>(1) the written consent of the organization having the name that is not distinguishable;<br/>
<a id="pl.90.16"></a><var>90.16</var>(2) a certified copy of a final decree of a court in this state establishing the prior right <br/>
<a id="pl.90.17"></a><var>90.17</var>of the applicant to use its corporate name in this state; or<br/>
<a id="pl.90.18"></a><var>90.18</var>(3) an affidavit of nonuse of the kind required by section 
         <statute_ref>302A.115, subdivision 1</statute_ref>, <br/>
<a id="pl.90.19"></a><var>90.19</var>paragraph (d), clause (3). <br/>
<a id="pl.90.20"></a><var>90.20</var>(b) The secretary of state shall determine whether a name is distinguishable from <br/>
<a id="pl.90.21"></a><var>90.21</var>another name for purposes of this section and section 
         <statute_ref>317A.117</statute_ref>. <br/>
<a id="pl.90.22"></a><var>90.22</var>(c) This subdivision does not affect the right of a corporation existing on January <br/>
<a id="pl.90.23"></a><var>90.23</var>1, 1991, or a foreign corporation authorized to do business in this state on that date, to <br/>
<a id="pl.90.24"></a><var>90.24</var>use its corporate name.<br/>
<br/>
<a id="bill.2.25.0"></a><a id="pl.90.25"></a><var>90.25</var>    Sec. 25. Minnesota Statutes 2012, section 319B.02, subdivision 3, is amended to read:<br/>
<a id="pl.90.26"></a><var>90.26</var>    Subd. 3. <b>Certificate of authority.</b> "Certificate of authority" means:<br/>
<a id="pl.90.27"></a><var>90.27</var>(1) with respect to a foreign firm that is a corporation, the certificate of authority <br/>
<a id="pl.90.28"></a><var>90.28</var>required under sections 
         <statute_ref>303.01</statute_ref> to 
         <statute_ref>303.24</statute_ref> and any notice filed under section 
         <statute_ref>303.115</statute_ref> in <br/>
<a id="pl.90.29"></a><var>90.29</var>connection with that certificate; and  <br/>
<a id="pl.90.30"></a><var>90.30</var>(2) with respect to a foreign firm that is a limited liability company, the certificate <br/>
<a id="pl.90.31"></a><var>90.31</var>of authority required under referred to in sections 
         <statute_ref>322B.905</statute_ref> to 
         <statute_ref>322B.955 or 322C.802 <br/>
<a id="pl.90.32"></a><var>90.32</var>to 322C.804
</statute_ref> and any notice filed under section 
         <statute_ref>322B.92</statute_ref>, clause (3), in connection with <br/>
<a id="pl.90.33"></a><var>90.33</var>that certificate.  <br/>
<br/>
<a id="bill.2.26.0"></a><a id="pl.91.1"></a><var>91.1</var>    Sec. 26. Minnesota Statutes 2012, section 319B.02, subdivision 22, is amended to read:<br/>
<a id="pl.91.2"></a><var>91.2</var>    Subd. 22. <b>Update.</b> "Update" means:<br/>
<a id="pl.91.3"></a><var>91.3</var>(1) with respect to a Minnesota professional firm that is either a Minnesota <br/>
<a id="pl.91.4"></a><var>91.4</var>corporation or a Minnesota limited liability company, amend the organizational document;<br/>
<a id="pl.91.5"></a><var>91.5</var>(2) with respect to a foreign professional firm that is a foreign corporation, file a notice <br/>
<a id="pl.91.6"></a><var>91.6</var>under section 
         <statute_ref>303.115</statute_ref> in connection with the foreign corporation's certificate of authority;  <br/>
<a id="pl.91.7"></a><var>91.7</var>(3) with respect to a foreign firm that is a limited liability company, file a notice <br/>
<a id="pl.91.8"></a><var>91.8</var>under section 
<statute_ref>322B.92</statute_ref>, clause (3), in connection with the foreign limited liability <br/>
<a id="pl.91.9"></a><var>91.9</var>company's an amended certificate of authority;  <br/>
<a id="pl.91.10"></a><var>91.10</var>(4) with respect to a Minnesota professional firm that is a limited liability partnership <br/>
<a id="pl.91.11"></a><var>91.11</var>and has an effective statement of qualification under section 
         <statute_ref>323A.1001</statute_ref>, amend that <br/>
<a id="pl.91.12"></a><var>91.12</var>statement of qualification; and  <br/>
<a id="pl.91.13"></a><var>91.13</var>(5) with respect to a foreign professional firm that is a limited liability partnership <br/>
<a id="pl.91.14"></a><var>91.14</var>and has an effective statement of foreign qualification under section 
         <statute_ref>323A.1102</statute_ref>, amend <br/>
<a id="pl.91.15"></a><var>91.15</var>that statement of foreign qualification.  <br/>
<br/>
<a id="bill.2.27.0"></a><a id="pl.91.16"></a><var>91.16</var>    Sec. 27. Minnesota Statutes 2012, section 319B.10, subdivision 3, is amended to read:<br/>
<a id="pl.91.17"></a><var>91.17</var>    Subd. 3. <b>Filings with secretary of state.</b> (a) For a Minnesota professional firm <br/>
<a id="pl.91.18"></a><var>91.18</var>involved in a merger, the document filed with the secretary of state to effectuate the <br/>
<a id="pl.91.19"></a><var>91.19</var>merger must state whether that Minnesota professional firm will survive the merger, and <br/>
<a id="pl.91.20"></a><var>91.20</var>if so, whether that Minnesota professional firm will remain a Minnesota professional <br/>
<a id="pl.91.21"></a><var>91.21</var>firm once the merger takes effect.<br/>
<a id="pl.91.22"></a><var>91.22</var>(b) For a foreign professional firm involved in a merger, the certificate filed with the <br/>
<a id="pl.91.23"></a><var>91.23</var>secretary of state under section 
         <statute_ref>303.11</statute_ref> or,
<statute_ref>322B.92</statute_ref>, or 322C.1004 must be accompanied <br/>
<a id="pl.91.24"></a><var>91.24</var>by a statement as to whether that foreign firm will survive the merger, and if so, whether <br/>
<a id="pl.91.25"></a><var>91.25</var>that foreign professional firm will remain a foreign professional firm once the merger <br/>
<a id="pl.91.26"></a><var>91.26</var>takes effect.  <br/>
<br/>
<a id="bill.2.28.0"></a><a id="pl.91.27"></a><var>91.27</var>    Sec. 28. Minnesota Statutes 2012, section 321.0108, is amended to read:<br/>
<a id="pl.91.28"></a><var>91.28</var><b>321.0108 NAME. </b><br/>
<a id="pl.91.29"></a><var>91.29</var>(a) The name of a limited partnership may contain the name of any partner. <br/>
<a id="pl.91.30"></a><var>91.30</var>(b) The name of a limited partnership that is not a limited liability limited partnership <br/>
<a id="pl.91.31"></a><var>91.31</var>must contain the phrase "limited partnership" or the abbreviation "L.P." or "LP" and may <br/>
<a id="pl.91.32"></a><var>91.32</var>not contain the phrase "limited liability limited partnership" or the abbreviation "LLLP" <br/>
<a id="pl.91.33"></a><var>91.33</var>or "L.L.L.P." <br/>
<a id="pl.92.1"></a><var>92.1</var>(c) Except as provided in section 321.1206(e)(1), the name of a limited liability <br/>
<a id="pl.92.2"></a><var>92.2</var>limited partnership must contain the phrase "limited liability limited partnership" or the <br/>
<a id="pl.92.3"></a><var>92.3</var>abbreviation "LLLP" or "L.L.L.P." and must not otherwise contain the abbreviation <br/>
<a id="pl.92.4"></a><var>92.4</var>"L.P." or "LP." <br/>
<a id="pl.92.5"></a><var>92.5</var>(d) The limited partnership name shall not contain a word or phrase that indicates or <br/>
<a id="pl.92.6"></a><var>92.6</var>implies that it is formed for a purpose other than a legal purpose. <br/>
<a id="pl.92.7"></a><var>92.7</var>(e) The limited partnership name shall be distinguishable upon the records in the <br/>
<a id="pl.92.8"></a><var>92.8</var>Office of the Secretary of State from the name of each domestic corporation, limited <br/>
<a id="pl.92.9"></a><var>92.9</var>partnership, limited liability partnership, and limited liability company, whether profit or <br/>
<a id="pl.92.10"></a><var>92.10</var>nonprofit, and each foreign corporation, limited partnership, limited liability partnership, <br/>
<a id="pl.92.11"></a><var>92.11</var>and limited liability company on file, authorized or registered to do business in this state <br/>
<a id="pl.92.12"></a><var>92.12</var>at the time of filing, whether profit or nonprofit, and each name the right to which is, at <br/>
<a id="pl.92.13"></a><var>92.13</var>the time of formation, reserved as provided for in sections 
         <statute_ref>5.35</statute_ref>, 
         <statute_ref>302A.117</statute_ref>, 
         <statute_ref>322A.03</statute_ref>, <br/>
<statute_ref><a id="pl.92.14"></a><var>92.14</var>322B.125
         </statute_ref>, 322C.0109, or 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref>, unless there is filed with the certificate of <br/>
<a id="pl.92.15"></a><var>92.15</var>limited partnership one of the following: <br/>
<a id="pl.92.16"></a><var>92.16</var>(1) the written consent of the domestic corporation, limited partnership, limited <br/>
<a id="pl.92.17"></a><var>92.17</var>liability partnership, or limited liability company, or the foreign corporation, limited <br/>
<a id="pl.92.18"></a><var>92.18</var>partnership, limited liability partnership, or limited liability company authorized or <br/>
<a id="pl.92.19"></a><var>92.19</var>registered to do business in this state or the holder of a reserved name or a name filed by <br/>
<a id="pl.92.20"></a><var>92.20</var>or registered with the secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref> having a name <br/>
<a id="pl.92.21"></a><var>92.21</var>that is not distinguishable; <br/>
<a id="pl.92.22"></a><var>92.22</var>(2) a certified copy of a final decree of a court in this state establishing the prior right <br/>
<a id="pl.92.23"></a><var>92.23</var>of the applicant to the use of the name in this state; or <br/>
<a id="pl.92.24"></a><var>92.24</var>(3) the applicant's affidavit that the corporation, limited partnership, or limited <br/>
<a id="pl.92.25"></a><var>92.25</var>liability company with the name that is not distinguishable has been incorporated or on file <br/>
<a id="pl.92.26"></a><var>92.26</var>in this state for at least three years prior to the affidavit, if it is a domestic corporation, <br/>
<a id="pl.92.27"></a><var>92.27</var>limited partnership, or limited liability company, or has been authorized or registered to <br/>
<a id="pl.92.28"></a><var>92.28</var>do business in this state for at least three years prior to the affidavit, if it is a foreign <br/>
<a id="pl.92.29"></a><var>92.29</var>corporation, limited partnership, or limited liability company, or that the holder of a name <br/>
<a id="pl.92.30"></a><var>92.30</var>filed or registered with the secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref> filed or <br/>
<a id="pl.92.31"></a><var>92.31</var>registered that name at least three years prior to the affidavit; that the corporation, limited <br/>
<a id="pl.92.32"></a><var>92.32</var>partnership, or limited liability company or holder has not during the three-year period <br/>
<a id="pl.92.33"></a><var>92.33</var>before the affidavit filed any document with the secretary of state; that the applicant has <br/>
<a id="pl.92.34"></a><var>92.34</var>mailed written notice to the corporation, limited partnership, or limited liability company <br/>
<a id="pl.92.35"></a><var>92.35</var>or the holder of a name filed or registered with the secretary of state under sections <br/>
<statute_ref><a id="pl.92.36"></a><var>92.36</var>333.001
         </statute_ref> to 
         <statute_ref>333.54</statute_ref> by certified mail, return receipt requested, properly addressed to the <br/>
<a id="pl.93.1"></a><var>93.1</var>registered office of the corporation or limited liability company or in care of the agent of <br/>
<a id="pl.93.2"></a><var>93.2</var>the limited partnership, or the address of the holder of a name filed or registered with the <br/>
<a id="pl.93.3"></a><var>93.3</var>secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref>, shown in the records of the secretary <br/>
<a id="pl.93.4"></a><var>93.4</var>of state, stating that the applicant intends to use a name that is not distinguishable and the <br/>
<a id="pl.93.5"></a><var>93.5</var>notice has been returned to the applicant as undeliverable to the addressee corporation, <br/>
<a id="pl.93.6"></a><var>93.6</var>limited partnership, limited liability company, or holder of a name filed or registered <br/>
<a id="pl.93.7"></a><var>93.7</var>with the secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref>; that the applicant, after <br/>
<a id="pl.93.8"></a><var>93.8</var>diligent inquiry, has been unable to find any telephone listing for the corporation, limited <br/>
<a id="pl.93.9"></a><var>93.9</var>partnership, or limited liability company with the name that is not distinguishable in the <br/>
<a id="pl.93.10"></a><var>93.10</var>county in which is located the registered office of the corporation, limited partnership, or <br/>
<a id="pl.93.11"></a><var>93.11</var>limited liability company shown in the records of the secretary of state or has been unable <br/>
<a id="pl.93.12"></a><var>93.12</var>to find any telephone listing for the holder of a name filed or registered with the secretary <br/>
<a id="pl.93.13"></a><var>93.13</var>of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref> in the county in which is located the address <br/>
<a id="pl.93.14"></a><var>93.14</var>of the holder shown in the records of the secretary of state; and that the applicant has no <br/>
<a id="pl.93.15"></a><var>93.15</var>knowledge that the corporation, limited partnership, limited liability company, or holder <br/>
<a id="pl.93.16"></a><var>93.16</var>of a name filed or registered with the secretary of state under sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref> is <br/>
<a id="pl.93.17"></a><var>93.17</var>currently engaged in business in this state. <br/>
<a id="pl.93.18"></a><var>93.18</var>(f) The secretary of state shall determine whether a name is distinguishable from <br/>
<a id="pl.93.19"></a><var>93.19</var>another name for purposes of this section and section 
         <statute_ref>321.0109</statute_ref>. <br/>
<a id="pl.93.20"></a><var>93.20</var>(g) This section and section 
         <statute_ref>321.0109</statute_ref> do not abrogate or limit the law of unfair <br/>
<a id="pl.93.21"></a><var>93.21</var>competition or unfair practices; nor sections 
         <statute_ref>333.001</statute_ref> to 
         <statute_ref>333.54</statute_ref>; nor the laws of the United <br/>
<a id="pl.93.22"></a><var>93.22</var>States with respect to the right to acquire and protect copyrights, trade names, trademarks, <br/>
<a id="pl.93.23"></a><var>93.23</var>service names, service marks, or any other rights to the exclusive use of names or symbols; <br/>
<a id="pl.93.24"></a><var>93.24</var>nor derogate the common law or the principles of equity. <br/>
<a id="pl.93.25"></a><var>93.25</var>(h) A limited partnership that is the surviving organization in a merger with one <br/>
<a id="pl.93.26"></a><var>93.26</var>or more other organizations, or that is formed by the reorganization of one or more <br/>
<a id="pl.93.27"></a><var>93.27</var>organizations, or that acquires by sale, lease, or other disposition to or exchange with an <br/>
<a id="pl.93.28"></a><var>93.28</var>organization all or substantially all of the assets of another organization, including its <br/>
<a id="pl.93.29"></a><var>93.29</var>name, may have the same name as that used in this state by any of the other organizations, <br/>
<a id="pl.93.30"></a><var>93.30</var>if the other organization whose name is sought to be used was organized under the laws <br/>
<a id="pl.93.31"></a><var>93.31</var>of, or is authorized to transact business in, this state. <br/>
<a id="pl.93.32"></a><var>93.32</var>(i) The use of a name by a limited partnership in violation of this section does not <br/>
<a id="pl.93.33"></a><var>93.33</var>affect or vitiate its existence, but a court in this state may, upon application of the state or <br/>
<a id="pl.93.34"></a><var>93.34</var>of a person interested or affected, enjoin the limited partnership from doing business under <br/>
<a id="pl.93.35"></a><var>93.35</var>a name assumed in violation of this section, although its certificate of limited partnership <br/>
<a id="pl.93.36"></a><var>93.36</var>may have been filed with the secretary of state and a certificate of formation issued. <br/>
<br/>
<a id="bill.2.29.0"></a><a id="pl.94.1"></a><var>94.1</var>    Sec. 29. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.94.2"></a><var>94.2</var>The revisor of statutes shall remove the references to sections of Minnesota Statutes, <br/>
<a id="pl.94.3"></a><var>94.3</var>chapter 322B, in the sections amended in this article and elsewhere in Minnesota Statutes <br/>
<a id="pl.94.4"></a><var>94.4</var>and make any necessary related changes.<br/>
<a id="pl.94.5"></a><var>94.5</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2018.<br/>
<br/>
<a id="bill.2.30.0"></a><a id="pl.94.6"></a><var>94.6</var>    Sec. 30. <b> REPEALER.</b><br/>
<a id="pl.94.7"></a><var>94.7</var>Minnesota Statutes 2012, section 302A.687, is repealed.<br/>
<br/>
<a id="bill.2.31.0"></a><a id="pl.94.8"></a><var>94.8</var>    Sec. 31. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.94.9"></a><var>94.9</var>Except as otherwise provided, this article is effective August 1, 2015.<br/>