Members Contributions and Interests Clause Samples
The "Members, Contributions and Interests" clause defines who the members of an entity are, what each member is required to contribute (such as money, property, or services), and how ownership interests are allocated among them. Typically, this clause outlines the process for admitting new members, the form and value of contributions, and the method for determining each member's share in profits, losses, and voting rights. Its core function is to establish a clear framework for membership and ownership, ensuring transparency and preventing disputes over contributions and entitlements within the organization.
Members Contributions and Interests. 2.1 Equity Interests. There shall be two classes of ownership interests held by Members: Class A Common Equity Units ("Common Equity Units"), and Preferred Equity Units ("Preferred Equity Units"). Common Equity Units shall have voting rights on any matter generally requiring the approval of the Members under the Oregon Limited Liability Company Act, shall have the voting rights specifically provided for in this Operating Agreement, shall have rights to distributions described in Sections 7.3 and 7.4, and shall have rights to proceeds of liquidation as provided in Section 9. Preferred Equity Units shall not have voting rights on any matter except as specifically provided for in the Oregon Limited Liability Company Act or in this Operating Agreement, shall have rights to distributions described in Sections 7.3 and 7.4, and shall have rights to proceeds of liquidation as provided in Section 9. As used in this Operating Agreement, the term "ownership interests," when used without reference to a specific class of ownership interest or unless the context requires otherwise, shall mean the total outstanding Common Equity Units.
Members Contributions and Interests