Bill > S307

This bill modifies North Carolina's Limited Liability Company (LLC) law by introducing a new legal classification called a "special economic interest owner" for individuals who lose full LLC membership due to specific circumstances like death or being adjudicated incompetent. Under the new provisions, when a member ceases to be a full member through events like death or incapacity, their estate or designated representative automatically becomes a special economic interest owner. This status grants them specific rights, including retaining the economic interest attributable to their previous ownership, maintaining information rights about the LLC, and preserving the ability to seek judicial dissolution of the LLC, unless such rights are expressly waived in the LLC's operating agreement. The bill expands the definitions of economic interest, economic interest owner, and interest owner to include this new category of special economic interest owner. The changes aim to provide more clarity and protection for individuals or estates that lose full LLC membership, ensuring they retain certain economic and informational rights. The bill becomes effective on October 1, 2025, and will apply to information requests and dissolution actions initiated on or after that date.

Government Affairs, Justice

https://www.ncleg.gov/BillLookUp/2025/S307