When you run the lmdown command, the following events occur:
A message is sent to the license daemon requesting that it shut down.
The license daemons complete the current log file message and close the file.
The license daemons remove all the licenses that have been given out. The next time a user calls a program and the client server goes to verify the license, the license will be invalid.
If you have a redundant server configuration, using the lmdown utility takes down all of the redundant servers.
See the lmdown man page for usage and options.