Category: Financing LLCs

CAPITAL CALLS

In many LLC operating agreements, provisions that give the manager or one or more members the right to request or require some or all members to make additional contributions of capital to the LLC (“capital calls”) after the LLC’s formation in order to meet current or anticipated needs are among the most important provisions in the agreement.  The latest post in the excellent blawg entitled “NY Divorce,” at A Lesson In Drafting Capital Call Provisions | New York Business Divorce (nybusinessdivorce.com), provides a very helpful overview of the law and practical considerations governing capital calls.