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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>346319</law_id><section_number>13.1-1023.1</section_number><catch_line>Remedies for breach of operating agreement by member or manager</catch_line><edition url="https://vacode.org/2026/" slug="2026" current="TRUE" last_updated="2026-08-02">2026</edition><structure><unit label="title" level="1" order_by="44" identifier="13.1">Corporations</unit><unit label="chapter" level="2" order_by="15" identifier="12">Virginia Limited Liability Company Act</unit><unit label="article" level="3" order_by="5" identifier="5">Relationship of Members to Each Other</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> An <span class="dictionary">operating agreement</span> may provide that: <a id="paragraph-1290973" class="section-permalink" href="https://vacode.org/13.1-1023.1/#A"><i class="fa fa-link"/></a></p></section>
						<section id="A1" class="indent-1"><p><span class="prefix-number">1.</span> A <span class="dictionary">member</span> or <span class="dictionary">manager</span> who fails to perform in accordance with, or to comply with terms and conditions of, the <span class="dictionary">operating agreement</span> shall be subject to specified penalties or specified consequences; and <a id="paragraph-1290974" class="section-permalink" href="https://vacode.org/13.1-1023.1/#A1"><i class="fa fa-link"/></a></p></section>
						<section id="A2" class="indent-1"><p><span class="prefix-number">2.</span> At the time or upon the happening of events specified in the <span class="dictionary">operating agreement</span>, a <span class="dictionary">member</span> or <span class="dictionary">manager</span> shall be subject to specified penalties or specified consequences.
				The specified penalties or specified consequences may include and take the form of any <span class="dictionary">penalty</span> or consequence set forth in subsection D of &#xA7; <a class="law" title="Contributions" href="/13.1-1027/">13.1-1027</a>. <a id="paragraph-1290975" class="section-permalink" href="https://vacode.org/13.1-1023.1/#A2"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> In the <span class="dictionary">articles of organization</span>, in writing in an <span class="dictionary">operating agreement</span> or in another writing, a <span class="dictionary">member</span> or <span class="dictionary">manager</span> may consent to or be subject to the nonexclusive <span class="dictionary">jurisdiction</span> of the <span class="dictionary">courts</span> of, or arbitration in, a specified <span class="dictionary">jurisdiction</span>, or the exclusive <span class="dictionary">jurisdiction</span> of the <span class="dictionary">courts</span> of the Commonwealth, or the exclusivity of arbitration in a specified <span class="dictionary">jurisdiction</span> of the Commonwealth, and to be served with legal process in a manner prescribed in the <span class="dictionary">articles of organization</span>, an <span class="dictionary">operating agreement</span>, or other writing. <a id="paragraph-1290976" class="section-permalink" href="https://vacode.org/13.1-1023.1/#B"><i class="fa fa-link"/></a></p></section></text><history>2003, c. 340; 2004, c. 601.</history><metadata></metadata></law>
