An Examination of the Charging Order Under Kentucky’s LLC and Partnership Acts

Abstract:     
The widespread use of the LLC and to a lesser degree general and limited partnerships has necessitated an increased awareness of the charging order. Today, in an environment of economic contraction and business failures, the import of the charging order has greatly increased. Part I of the article is focused upon the application and implications of the statutory formulae employed in Kentucky. While the charging order statutes in Kentucky are unique, they incorporate language employed in many states, so the guidance provided has application outside of the Commonwealth. Part II of the article addresses the federal tax treatment of the charging order, the application of the Uniform Commercial Code, and the charging order in bankruptcy.

Number of Pages in PDF File: 43

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