“SHOTGUN” PROVISIONS

November 17, 2020

The use in LLC operating agreements of provisions called, among other names, “shotgun provisions” or “Texas shootout provisions” to resolve deadlocks between members of a multi-member LLC can sometimes result in a disaster for one of the deadlocked members, as discussed by Peter Mahler, author of the excellent FarrellFritz blawg “New York Business Divorce,” in his latest post.  The link is below:

https://www.nybusinessdivorce.com/2020/11/articles/deadlock/llc-member-pays-the-price-for-not-sticking-to-deadlock-breaking-script/

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