Mich. Comp. Laws » Michigan Compiled Laws / Chapter 450 / Act 23 of 1993
Michigan Compiled Laws

Mich. Comp. Laws § 450.4509 (2026)

Withdrawal of member; distribution; expulsion.

✓ current as of July 2026
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MICHIGAN LIMITED LIABILITY COMPANY ACT


Act 23 of 1993


450.4509 Withdrawal of member; distribution; expulsion.

Sec. 509.

    (1) A member may withdraw from a limited liability company only as provided in an operating agreement. A member withdrawing pursuant to an operating agreement may become entitled to a withdrawal distribution as described in section 305.

    (2) An operating agreement may provide for the expulsion of a member or for other events the occurrence of which will result in a person ceasing to be a member of the limited liability company.

History: 1993, Act 23, Eff. June 1, 1993 ;-- Am. 1997, Act 52, Imd. Eff. July 1, 1997

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 2014–2022 · leading case: Altobelli v. Hartmann, 884 N.W.2d 537 (Mich. 2016).
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Altobelli v. Hartmann, 884 N.W.2d 537 (Mich. 2016). · cites it 3× “The circuit court granted plaintiffs motion for partial summary disposition, finding as a matter of law that plaintiff did not voluntarily withdraw from the Firm under MCL 450.4509(1) 4 or the Operating Agreement and that defendants had improperly terminated plaintiffs ownership…”
Altobelli v. Hartmann, 861 N.W.2d 913 (Mich. Ct. App. 2014). · cites it 9× “At the outset of its analysis, the circuit court reasoned that MCL 450.4509(1) required an LLC to set forth in its operating agreement the manner by which a member may voluntarily withdraw and concluded that plaintiff had not voluntarily withdrawn under the terms of the…”
Joby Clark v. Butoku Karate Sch. LLC (Mich. Ct. App. 2016). · cites it 5× “The second document was entitled “The Consent of the Members” and provided in part: IT IS HEREBY RESOLVED that, pursuant to MCL 450.4509, and Sections 8.1, 8.3, and 9.”
Mjcc 8 Mile LLC v. Basrah Custom Design Inc (Mich. Ct. App. 2022). “Nocha cites MCL 450.4509, which provides: (1) A member may withdraw from a limited liability company only as provided in an operating agreement.”
Mich. Comp. Laws § 450.4509(1): 2 cases
Altobelli v. Hartmann, 884 N.W.2d 537 (Mich. 2016). “The circuit court granted plaintiffs motion for partial summary disposition, finding as a matter of law that plaintiff did not voluntarily withdraw from the Firm under MCL 450.4509(1) 4 or the Operating Agreement and that defendants had improperly terminated plaintiffs ownership…”
Altobelli v. Hartmann, 861 N.W.2d 913 (Mich. Ct. App. 2014). “At the outset of its analysis, the circuit court reasoned that MCL 450.4509(1) required an LLC to set forth in its operating agreement the manner by which a member may voluntarily withdraw and concluded that plaintiff had not voluntarily withdrawn under the terms of the…”
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