The bill amends Chapter 7-16 of the Rhode Island Limited-Liability Company Act by introducing a new section, 7-16-40.1, which allows members of a limited-liability company (LLC) to avoid dissolution by purchasing the membership interest of a member or members who have filed a petition for dissolution. The process requires the purchasing members to file an election with the court prior to the commencement of the hearing, or at any time prior to the sale or other disposition of the LLC's assets, offering to buy the petitioner's membership interest at a price equal to its fair market value.

If the membership interest owned by the petitioner is to be purchased by another member, notice must be sent to all other members of the LLC, providing them the opportunity to join in the election to purchase a pro rata share of the petitioner's membership interest. In cases where the parties cannot agree on the fair market value, the court will determine the value and set the terms for the purchase, including payment conditions. The petitioner is entitled to interest on the purchase price from the date of the filing of the election to purchase, and all rights associated with the membership interest will terminate on that date. The costs of the proceeding will be allocated as determined by the court. Upon full payment of the purchase price, the petitioner will transfer the membership interest to the purchasers. The act will take effect upon passage.