Under the link below is a post by Peter Mahler, the world’s expert (in my opinion) on disputes among LLC members and managers. His post is about a “weaponized” LLC—i.e., one in which the majority have very substantial rights vis a vis the minority under the governing operating agreement. In my experience, “weaponized” LLCs are common; I’ve formed more than a couple myself.
In any disputes among members and managers of LLCs, the inspection rights of the members are likely to be key to resolution of these disputes. The post in the NY Business Divorce blawg under the link below summarizes several key cases addressing inspection right issues.
Is a Schedule K-1 proof of a person’s membership in an LLC? For an answer to this very important LLC question, click on the following link to Peter Mahler’s latest blog post: https://www.nybusinessdivorce.com/2018/11/articles/standing/schedule-k-1-enough-prove-llc-membership/