Transfer of Interests and Substitute Additional Members Clause Samples

The "Transfer of Interests and Substitute/Additional Members" clause governs how ownership interests in an entity, such as a partnership or LLC, can be transferred to others and under what conditions new members may be admitted. Typically, this clause outlines the procedures for an existing member to sell or assign their interest, including any required approvals from other members or the entity itself, and details the process for recognizing substitute or additional members. Its core function is to maintain control over the entity’s membership, prevent unwanted parties from gaining ownership, and ensure that all transfers and admissions are conducted in an orderly and agreed-upon manner.