No Right to Demand Return of Capital Clause Samples

The "No Right to Demand Return of Capital" clause establishes that investors or partners are not entitled to request the return of their contributed capital before a specified event, such as the dissolution or liquidation of the entity. In practice, this means that once funds are invested, they remain committed to the business or fund for the agreed duration, regardless of individual preferences or circumstances. This clause ensures stability and predictability in the entity’s capital structure by preventing unexpected withdrawals that could disrupt operations or financial planning.
POPULAR SAMPLE Copied 24 times
No Right to Demand Return of Capital. No Member has any right to any return of capital or other distribution except as expressly provided in this Agreement. No Member has any drawing account in the Company.
View SourceView Similar (434)
No Right to Demand Return of Capital. Members shall not be entitled the right to any return of capital or the distribution thereof, unless otherwise expressly provided by this Agreement. The Company shall not extend drawing accounts to any of its Members.
View SourceView Similar (4)
No Right to Demand Return of Capital. No Member will have any right to any distribution except as expressly provided in this Operating Agreement. No Member will have any drawing account in the LLC. DigiSign Verified - 528b3e30-c984-415f-8147-306493d6354
View Source

Related to No Right to Demand Return of Capital

  • Return of Capital The liquidators shall not be personally liable for the return of Capital Contributions or any portion thereof to the Members (it being understood that any such return shall be made solely from Company assets).

  • Return of Capital Contribution From time to time the Partnership may have cash in excess of the amount required for the conduct of the affairs of the Partnership, and the General Partner may, with the Consent of the Special Limited Partner, determine that such cash should, in whole or in part, be returned to the Partners, pro rata, in reduction of their Capital Contribution. No such return shall be made unless all liabilities of the Partnership (except those to Partners on account of amounts credited to them pursuant to this Agreement) have been paid or there remain assets of the Partnership sufficient, in the sole discretion of the General Partner, to pay such liabilities.