LLC Controlling Member Fiduciary Liabilities — The Harvard Law School Forum on Corporate Governance

Remember …decisions in court cases usually have a major impact on the next case….regardless of locale.   Small business LLCs need-to-know.

Excerpt……..Last month, the Delaware Court of Chancery issued an important post-trial decision that held the majority and managing member of an LLC liable for breaches of fiduciary duty in connection with the member’s management and eventual purchase of the company. The opinion unequivocally shows that the Court of Chancery considers Delaware’s LLC Act to impose default fiduciary obligations analogous to those in the corporate context absent a clear expression otherwise in the LLC agreement.

Read full article……via LLC Controlling Member Fiduciary Liabilities — The Harvard Law School Forum on Corporate Governance and Financial Regulation.