Category: Dissolution Issues

THIRD ATTEMPT TO DISSOLVE LLC FAILS

Every LLC lawyer has to understand the law and tax governing LLC dissolutions and the often very messy dissolution process, since, sadly, this knowledge eventually will be all too relevant to some of his multi-member LLC clients.  In his latest post, Peter Mahler discusses the lengthy and painful litigation history of a particularly hard-fought dissolution.

Here’s the link to his post:  https://www.nybusinessdivorce.com/2019/04/articles/llcs/third-times-not-a-charm-in-llc-dissolution-case/

Dissolution Issues

Judicial Dissolution of Delaware LLC Founded on Fraud
The post under the link below discusses a recent Delaware Court of Chancery case in which, under Delaware Limited Liability Company Act § 18-802, the court dissolved an LLC that had been founded on false claims of patent ownership and thus whose business was not “reasonably practicable.”  I suspect that at least a small number of other LLCs are formed every year that could well fall prey to § 18-802 or similar provisions under other LLC acts for having been founded on fraud.

Here’s the link:
https://www.klgatesdelawaredocket.com/2019/01/patently-false-the-delaware-chancery-court-dissolves-limited-liability-company-founded-on-false-claims-of-patent-ownership/