Categories : Business & Corporate Law Wisdom
Dispute Resolution Techniques in LLCs
By Bob Copeland
RULLCA and the Delaware Limited Liability Company Act and case law make it clear that LLCs are contractual relationships and the LLC acts provide great flexibility for parties in tailoring their relationship. Drafters of LLC operating agreements should certainly discuss the need for and possible terms of a mechanism for resolving disputes among the members with clients and the possible consequences if disagreement over continuing the business of an LLC arises and the parties are deadlocked and are left to the default provisions of the applicable LLC Act, including a possible involuntary dissolution proceeding overseen by a court. (And the courts, when asked to intervene, do so enthusiastically.)