The bill amends the Michigan Limited Liability Company Act, specifically section 504, to clarify the ownership of membership interests in limited liability companies. It establishes that a membership interest is considered personal property and can be held in any manner typical for personal property. Notably, the bill updates the terminology from "husband and wife" to "spouses," allowing spouses to hold a membership interest in joint tenancy under the same conditions that apply to jointly held real estate, including the right of survivorship upon the death of either spouse.

Additionally, the bill specifies that a member does not have an interest in specific limited liability company property. The enactment of this amendment is contingent upon the approval of certain resolutions by the 103rd Legislature, which must become part of the state constitution.

Statutes affected:
House Introduced Bill: 450.4504