Does Capital Contribution Increase if a Comapny's Valuation Has Increased

[ksz]

What is the name of your state (only U.S. law)? Oregon

I have two questions regarding an Oregon LLC with 7 shareholders with initial valuation of $1,000,000:
First, I have 5% interest (5 shares) of an LLC and my initial capital contribution of $50,000. Originally, 2-years ago, the company started with initial valuation of $1,000,000. Just recently the company's board did another valuation and it is at $2,000,000. So the value of my 5% interest has doubled. Now to my question, does my initial capital contribution doubles too to $100,000 or it doesn't change?

Second: One of the shareholders (call him Mike) provided the company technical services on an IP in return for 2% interest in the company. Later, the company found out they can't patent it due to existence of prior art. So the company stopped working on the project and started on another IP, which the shareholder Mike has no involvement in. Mike is willing to give up his 2% interest back to the company. So is there a way for Mike's 2% interest gets transferred back to the company without going through a sale transaction where the company buys them from Mike.

 

[FlyingRon]

Your capital contribution remains what you put into it. The increase in corporate valuation whether real or artificial doesn't change that and is largely immaterial until you can manage to sell someone your shares. At that point the increase in valuation reflected by the sales price becomes a capital GAIN.

LLC's don't have shareholders. They have members.

The question on Mike depends on just what conveyed his membership to him.