Effect of Dissociation of an LLC
losses right to participate in the management and act as an agent. Generally, has the right to have his interest in th eLLC bought out by th eother members at fair value. If the dissociation is wrongful (violates the LLC's operating agreement), dissociated members can be held liable for damages. Normally, the dissociated member has no right to force the LLC to dissolve. (This can be addressed in the operating agreement.) When an LLC is dissolved, any member who did not wrongfully dissociate can participare in the winding up process. In th ewhinding up phase, members must collect, liquidate and distribute the LLC;s assets. Proceeds are distributed to pay off debts to creditors first, members capital contributions are returned new and any remaining amounts are then distributed to members in equal amounts or according to the operating agreement.