News & Analysis as of

Revised Uniform Limited Liability Company Act

Patton Sullivan Brodehl LLP

To Moot a Statutory Buyout, LLC’s Dissolution Must be Valid Under its Operating Agreement

In 2022, The LLC Jungle covered the opinion Friend of Camden, Inc. v. Brandt in a post titled LLC Dissolution Vote Defeats Statutory Buyout. In the Friend of Camden case, the Court of Appeal held that an LLC membership vote...more

Allen Matkins

What Happens When An LLC Member Dies?

Allen Matkins on

To every member of a limited liability company who is a natural person, death will come "soon or late".   The California Revised Uniform Limited Liability Company Act provides that an individual dissociates as a member when...more

Farrell Fritz, P.C.

Judicially Expelled Member Pays Heavy Price For Abandoning LLC

Farrell Fritz, P.C. on

Last month, in Flor v Greenberg Farrow Architectural Inc., a three-judge panel of the New Jersey Appellate Division handed down an opinion with important lessons for business owners and practitioners in states that have...more

Farrell Fritz, P.C.

The Magnolia State Wins the Prize for Novel Alternative Remedies in LLC Dissolution Cases

Farrell Fritz, P.C. on

New York courts are not in the vanguard when it comes to devising less drastic, alternative remedies in LLC judicial dissolution cases. In their defense, there’s nothing in Article 7 of New York’s LLC Law that expressly...more

Lowenstein Sandler LLP

The New Jersey Business Corporation Act to Permit Corporate Conversions/Domestications

Lowenstein Sandler LLP on

Effective November 4, 2023, the New Jersey Business Corporation Act (the Act) will be amended to permit conversions and domestications across all business entity types, including foreign and domestic corporations. The delay...more

Allen Matkins

Court Finds Plaintiff Failed To Plead Impropriety Of LLC Distributions

Allen Matkins on

The California Revised Uniform Limited Liability Company Act defines a "distribution" as a transfer of money or other property from a "limited liability company" (Cal. Corp. Code § 17701.02(k)) to another "person" (Cal. Corp....more

Allen Matkins

May A Member Of A California LLC Consent To The Jurisdiction Of Another State's Courts?

Allen Matkins on

Section 17701.10 of  California's Revised Uniform Limited Liability Company Act (RULLCA) provides that an operating agreement serves the following four purposes...more

McCarter & English, LLP

New Jersey Modernizes Business Corporation Act to Permit Certain Conversion Transactions

On May 8, 2023, New Jersey Governor Phil Murphy signed into law Senate Bill 142 (P.L. 2023, Chapter 38), which amends and supplements the New Jersey Business Corporation Act (BCA) to provide procedures for conversions (the...more

Quarles & Brady LLP

New Statutory Rules for Wisconsin LLCs Effective 1/1/23

Quarles & Brady LLP on

Wisconsin recently adopted a new version of its LLC Act (Chapter 183 of the Wisconsin Statutes). The new LLC Act is a full redraft of the prior statute and more closely tracks the Revised Uniform Limited Liability Company Act...more

Farrell Fritz, P.C.

The Nutmeg State Out Front on Member Inspection Rights Under RULLCA

Farrell Fritz, P.C. on

For the second time in two years, the Connecticut Supreme Court has ventured into uncharted waters of LLC governance under the Revised Uniform LLC Act which, to date, has been adopted by 22 states and awaits legislative...more

Farrell Fritz, P.C.

Statutory Buyouts and Discounts Under the Fair Market Value Standard: An Awkward Pair?

Farrell Fritz, P.C. on

Valuation discounts can and often do play an outsized role in contested appraisal proceedings involving the valuation of equity interests in closely held business entities for which there is no public market....more

Farrell Fritz, P.C.

Judicial Dissolution of LLCs Under RULLCA: Iowa Supreme Court Takes the Stage

Farrell Fritz, P.C. on

Iowa was one of the first states to adopt the 2006 Revised Uniform Limited Liability Company Act.  As of this year, 21 others have done so not including New York which continues to limp along with its creaky LLC Law enacted...more

Patton Sullivan Brodehl LLP

LLC Managers: No Immunity for Bad Faith Conduct

Under the “default” rules of most limited liability company laws, including California’s Revised Uniform Limited Liability Company Act, LLC managers owe fiduciary duties to the LLC and its members.  Those default fiduciary...more

Allen Matkins

Does California Law Apply To A Derivative Action Brought By Members Of A Foreign LLC?

Allen Matkins on

In a ruling handed down this week, U.S. District Judge Lawrence J. O'Neill addressed whether California law applied to derivative claims apparently brought on behalf of an Oregon entity. I found Judge O'Neill's ruling...more

Patton Sullivan Brodehl LLP

Removing an LLC’s Manager — It’s Complicated

One of the hot button issues frequently leading to litigation in “The LLC Jungle” is the removal of an LLC’s manager. Thoughtfully drafted LLC Operating Agreements contain provisions addressing the criteria and procedures...more

Allen Matkins

CARULLCA Transition Issues Left Unaddressed In Recent Decision

Allen Matkins on

Hillsborough Dev. Co., LLC v. Annen Case No. D074818 (Cal. Ct. App. Aug. 9, 2019) involved a disputed removal of an LLC's manager by a majority of the members. The LLC agreement was silent on how the manager could be removed...more

Allen Matkins

Who Signs For The LLC?

Allen Matkins on

California's Revised Uniform Limited Liability Company Act includes two separate provisions validating notes, mortgages, evidences of indebtedness, contracts, certificates, statements, conveyances or other written instruments...more

Allen Matkins

SOS Amends Form LLC-1 To Warn Of Perjury

Allen Matkins on

California Corporations Code Section 17702.07(c) provides that an individual who signs a record authorized or required to be filed under the California Revised Uniform Limited Liability Company Act "affirms under penalty of...more

Allen Matkins

Terence, This Trust Business Is Stupid Stuff!

Allen Matkins on

The California Revised Uniform Limited Liability Company Act defines "person" to mean, among other things a "trust, a trustee of a trust, including, but not limited to, a trust described under Division 9 (commencing with...more

Allen Matkins

The CARULLCA Adds To Confusion About Trusts As Persons

Allen Matkins on

Today's post continues my discussion of the Court of Appeal's holding in Han v. Hallberg, 2019 Cal. App. LEXIS 475 that a trust is a person that may be a partner under the California Uniform Partnership Act. As I noted...more

Patton Sullivan Brodehl LLP

Why LLC Managers Should Take Member “Books and Records” Requests Seriously

Under California’s Revised Limited Liability Company Act (“RULLCA”), LLC participants have substantial freedom to structure their relationship in a customized manner under their governing operating agreement.  But one of the...more

Allen Matkins

Legislator Proposes Limited Immortality For California LLCs

Allen Matkins on

The California Revised Uniform Limited Liability Act originally provided that "A limited liability company that is dissolved nevertheless continues to exist for the purpose of winding up its affairs, prosecuting and defending...more

Allen Matkins

The Perils Of A False LLC Filing With The SOS

Allen Matkins on

California requires that the articles of organization of a limited liability company include the name and street address of the initial agent for service of process. Cal. Corp. Code § 17702.01(b)(4). In a recent ruling,...more

Allen Matkins

An LLC Is Not A Corporation (Again)

Allen Matkins on

Professor Joshua Fershee continues to chide courts for "careless language related to limited liability companies (LLCs)". His post on the Business Law Prof Blog notes and quotes, but does not cite, a ruling from the Northern...more

Patton Sullivan Brodehl LLP

Dissolving an LLC when its Purpose Fails

Most LLC Operating Agreements contain a provision describing the “purpose” of the business. These “purpose statements” can be extremely broad and open-ended, parroting the boilerplate language required to be present in the...more

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