Member Control Agreements
Member Control Agreements are flexible and can govern the management of a limited liability company’s (LLC’s) business, the declaration and payment of distributions, the sharing of profits and losses, the election of governors or managers, the employment of members and others by the limited liability company, the relations among members and persons who have signed contribution agreements (including the termination of continued membership), the dissolution, termination, and liquidation of the limited liability company (including the continuation of the limited liability company’s business through a successor organization or individual), and the arbitration of disputes. Member Control Agreements are prudent both from an operational standpoint and from a liability standpoint should a plaintiff attempt to “pierce the corporate veil” by alleging that the LLC is simply an alter ego of an officer, member or organizer and thus seek to hold that individual personally liable for plaintiff’s claims against the LLC.
Contact us to arrange an appointment to speak to one of our lawyers about creating a Member Control Agreement for your LLC.
*This material is educational only, it does not constitute legal advice, it should not be relied on and it does not create an attorney-client relationship.