Charging OrderCharging Order
Acharging order only allows a creditor the right to attach distributions rather than allowing a creditor to succeed to all of the ownership rights of a partnership interest. Partnership law with respect to creditor rights and subsequently, limited liability company (LLC) law, developed differently than corporate law. A creditor of a partnership or LLC does not receive any voting rights. With a charging
Mark Merric, Bill Comer, & Daniel G. Worthington
Acharging order only allows a creditor the right to attach distributions rather than allowing a creditor to succeed to all of the ownership rights of a partnership interest. Partnership law with respect to creditor rights and subsequently, limited liability company (LLC) law, developed differently than corporate law. A creditor of a partnership or LLC does not receive any voting rights. With a charging order, the creditor is left with a right to distributions; however, the creditor has no method (such as voting rights) to force a distribution.
Different authors use different definitions of what is included in the definition of “sole or exclusive remedy.” To the layperson, the word “sole” or ...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?