Who is a “Member” Entitled to Inspect LLC’s Books and Records

Who is a “Member” Entitled to Inspect LLC’s Books and Records

      In a recent decision from New York, applying Delaware law, the court was called upon to determine whether the holder of a 4% profits interest in an LLC, that interest subordinated to certain superior rights, was indeed a “Member” entitled to inspect the LLC’s books and records. Parsing this particular operating agreement, the court determined that the holder of that 4% profits interest was a “member” with a right of inspection. Tungsten Partners LLC v. Ace Group International, LLC, 2017 NY Slip Op. 32025 (U) (Sup. Ct. NY County September 20, 2017).

      This decision was reviewed by Peter Mahler in his blog New York Business Divorce. in an October 16 posting titled A Member by any Other Name… May  Have Access to LLC Books and Records. HERE IS A LINK to that posting.