ENFORCEABILITY OF OPERATING AGREEMENTS UNDER THE DLLCA

August 29, 2019

The post under the link below discusses a recent Delaware Chancery Court decision holding, in essence, that members of Delaware multi-member LLCs will be fully bound by their operating agreements even if they lack the legal sophistication of other members of their LLCs.  This holding is clearly implicit in the Delaware Supreme Court’s landmark Elf Atochem case, but it strengthens the effect of that case and of DLLCA 18-1101(b), on which Elf Atochem was based.

Here’s the link:

https://www.klgatesdelawaredocket.com/2019/07/sophisticated-party-or-not-llc-agreement-still-governs/

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