Contractually Reimposing Fiduciary Duties in an LLC Operating Agreement Despite Clause Waiving Fiduciary Duties

Claud Mccoid

Delaware limited legal responsibility firms are creatures of agreement. And, below the Delaware Restricted Legal responsibility Enterprise Act, fiduciary duties traditionally imposed upon these in management of an entity can be removed or limited in the operating arrangement. If the members of a limited legal responsibility firm fall short to workout their contractual authority to limit or remove fiduciary duties, nevertheless, the Delaware courts borrow default fiduciary duties from company legislation and impose them on the LLC’s…
By: Weil, Gotshal & Manges LLP… Read More