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Is a member of an LLC obligated to contribute more money to or to agree to secure more debt on behalf of the LLC to the LLC?
Wiki User
∙ 14y ago
Typically not and the default rule is no. There are some exceptions. First, the operating agreement that governs the LLC could have a provision explicitly requiring the members to do so. Such a provision would have the force of contract and the member would be obligated to do so. Second, previous distributions made to members can, in some circumstances, be "clawed back" by creditors - typically when there has been a distribution made without regard to existing debt.
Wiki User
∙ 14y ago
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