Involuntary Withdrawal Clause Samples
The Involuntary Withdrawal clause defines the circumstances and procedures under which a party may be forced to leave an agreement or organization against their will. Typically, this clause outlines specific events—such as bankruptcy, legal incapacity, or breach of contract—that trigger the removal of a member or partner. It also details the process for determining the departing party’s rights and obligations, such as the buyout of their interest or redistribution of responsibilities. The core function of this clause is to protect the integrity and stability of the group or agreement by providing a clear mechanism for removing members whose continued participation is no longer viable or desirable.
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Involuntary Withdrawal. Immediately upon the occurrence of an Involuntary Withdrawal, the successor of the withdrawn Member shall thereupon become an Interest Holder but shall not become a Member. The interest held will be subject to the option rights set forth in Section 6.1.
Involuntary Withdrawal. Involuntary withdrawal of a Partner shall include, but not be limited to, the following:
a.) Death of a Partner;
b.) Partner that becomes incapacitated or not able to make decisions on their own as determined by a licensed physician;
c.) A handicap of a Partner that prevents the individual from carrying out their Partnership duties and obligations;
d.) Incompetence or negligence of a Partner; e.) A Partner’s breach of fiduciary duties;
Involuntary Withdrawal. Immediately upon the occurrence of an Involuntary Withdrawal, the successor of the Withdrawn Member shall thereupon become an Interest Holder but shall not become a Member. If the Company is continued as provided in Section 7.1.3, the successor Interest Holder shall have all the rights of an Interest Holder but neither the predecessor nor the successor Interest Holder shall be entitled to receive in liquidation of the Interest, pursuant the Act, the fair market value of the Member’s Interest as of the date the Member involuntarily withdrew from the Company.
Involuntary Withdrawal. Where a member board fails to comply with the terms or conditions of these Articles of Joint Agreement, fails to meet the financial obligations established by these Articles of Joint Agreement or by the Board of Directors, or fails to follow the policies or procedures of SEDOM, the SEDOM Board of Directors may expel such member board from SEDOM. Expulsion shall be effective on July 1 following approval of the expulsion by two-thirds of the members of SEDOM Board of Directors. A member board that is expelled from SEDOM shall be deemed to irrevocably waive any interest in the assets of SEDOM, including but not limited to real property, buildings, equipment and materials, and funds, provided, however, that SEDOM shall return to the withdrawing member board any unspent Federal IDEA Part B Funds generated by students in the withdrawing member district (i.e., “carryover”). Such member board shall remain liable for its share of any CASE liabilities that arose or accrued before effective date of expulsion as determined under subsection a.2.(d) above in the case of a member board’s withdrawal. SEDOM shall provide written notice of the proposed expulsion, and the reason(s) therefor, to a member board not less than thirty (30) days before the proposed expulsion is presented to the SEDOM Board of Directors for approval. Within fifteen (15) days of its receipt of written notice of the proposed expulsion, the member board may submit a written request to the SEDOM Executive Director to address SEDOM Board of Directors prior to consideration of the proposed expulsion.
Involuntary Withdrawal. Any Partner may be required to withdraw from the Partnership upon the happening of any of the following events:
a. If any Partner makes an assignment for the benefit of creditors or applies for the appointment of a trustee, a liquidator or receiver of any substantial part of his assets or commences any proceeding relating to himself under any bankruptcy, reorganization, or arrangement of similar law; or if any such application is filed or proceeding is commenced against any Partner and such Partner indicates his consent thereto, or an order is entered appointing any such trustee, liquidator or receiver, or approving a petition in any such proceeding and such order remains in effect for more than sixty (60) days; then that Partner shall be deemed to have withdrawn from the Partnership as of the date of the happening of any such event.
b. If any Partner shall be adjudged incompetent, then such Partner shall be deemed to have withdrawn from the Partnership on the date set forth in a notice to such incompetent Partner from the remaining Partners. The value of the Partnership interest in the Partnership of any Partner who shall be required to withdraw from the Partnership as provided in this paragraph, and the method of payment for the Partnership interest shall be as provided in Paragraph 17 hereof.
Involuntary Withdrawal. Immediately upon the occurrence of an involuntary Withdrawal (“Involuntary Withdrawal”), the successor of the Withdrawn Member shall thereupon become an Economic Interest holder, but shall not become a Member. If the Company is continued as provided in this Agreement, the successor Economic Interest holder shall have all the rights of an Economic Interest holder, provided however such Economic Interest holder shall not be entitled to require a liquidation of the Economic Interest. EXHIBIT 2 to Offering Circular/Opening Night Enterprises, LLC/Operating Agreement 34
Involuntary Withdrawal. Immediately upon the occurrence of an Involuntary Withdrawal, the successor of the Withdrawn Partner shall thereupon become an Interest Holder but shall not become a Partner without the unanimous consent of the remaining Partners. If the Partnership is continued as provided in Section 7.1.4., the successor Interest Holder shall have all the rights of an Interest Holder but shall not be entitled to receive in liquidation of the Interest the fair market value of the Partner's Interest as of the date the Partner involuntarily withdrew from the Partnership.
Involuntary Withdrawal. If DHRL is notified by a University official that an involuntary withdrawal has been enacted for Student, DHRL will refund a portion of the rent for the semester Student is involuntarily withdrawn, based upon Student’s move out date.
Involuntary Withdrawal. Any circumstance compelling the involuntary transfer of a Member's Interest, including, without limitation, service of any writ of seizure applicable to his Interest or adjudication of bankruptcy of a Member, shall be deemed a withdrawal by the Member affected thereby effective upon the service of the writ or notice of the adjudication.
Involuntary Withdrawal. Where the Network determines on the basis of at least a two-thirds majority vote of the Board that a Network Member has failed to comply with the duties and responsibilities set out in this Agreement, it shall promptly notify the Network Member(s) of the particulars. The Network Member shall have thirty (30) days within which to remedy the failure, otherwise the Network Member may be deemed to have withdrawn from this Agreement.