SHOULD THE OPERATING AGREEMENT OF A MULTI-MEMBER LLC CONTAIN COMPREHENSIVE FIDUCIARY DUTY PROVISIONS?

December 30, 2019

LLC fiduciary duties are, in essence, the duties of members and managers to act ethically toward the LLC.  Fiduciary duties also represent the “team spirit” of an LLC, which can be critical to its success.  The two main fiduciary duties are the duties of care and loyalty.  Operating agreements should normally spell out the fiduciary duties of the members and managers of a multi-member LLC comprehensively, so that they’ll know how to act as members and managers from Day 1.

Leave a Comment

Your email address will not be published.