Changes in Members’ Interest Clause Samples
The "Changes in Members’ Interest" clause governs how alterations to the ownership stakes or membership interests in a company or partnership are managed. It typically outlines the procedures for transferring, selling, or otherwise modifying a member's share, including any required approvals from other members or the entity itself. For example, it may require that existing members have a right of first refusal before interests are sold to outsiders. This clause ensures transparency and control over who can become a member, thereby protecting the stability and intended structure of the organization.
Changes in Members’ Interest. If during any year of the Company there is a change in any Member’s interest in the Company, the Managing Member shall confer with the tax advisors to the Company and, in conformity with such advice, allocate the Net Profit or Net Loss to the Members so as to take into account the varying interests of the Members in the Company in a manner that complies with the provisions of Section 706 of the Code and the regulations promulgated thereunder.
Changes in Members’ Interest. If during any Fiscal Year of the Company there is a change in any Member's Interest in the Company, the Net Profit or Net Loss shall be allocated to the Members so as to take into account the varying Interests of the Members in the Company in a manner that complies with the provisions of section 706 of the Code and the Regulations thereunder.