California’s Revised LLC Law: Failure to Check Operating Agreements Can Result In Costly Disputes
On January 1st, 2014, significant revisions to California’s limited liability company law came into effect. Some of the more impactful changes relate to the “default” rules applied to LLCs, their members, and their managers when the LLC operating agreement is silent on an issue or if the intent of the parties cannot otherwise be determined. These revisions can lead to potential conflict between LLC members who are relying on the old default rules to define their rights and obligations and...