More On LLC Member Expulsions - You Can't Do It Unless You May Do It

More On LLC Member Expulsions - You Can't Do It Unless You May Do It

      Peter Mahler, in his blog New York Business Divorce, has reviewed a recent decision addressing the absence, under New York law, of the provision enabling the expulsion of a member from an LLC. The New York LLC Act does not contain a provision enabling such an expulsion. If such a capacity is desired, it has to be written into the operating agreement.

      As discussed in the posting, Repeat After Me: You May Not Expel A Member of The New York LLC Unless The Operating Agreement Says So, he reviews yet another case in which a purported expulsion took place absent a provision in the operating agreement authorizing expulsion. The court found the effort to be for naught.

      HERE IS A LINK to that posting.

      In 2017, the Kentucky LLC Act was amended to provide a default mechanism for the expulsion of a member. That addition to the Kentucky LLC Act is reviewed in Rutledge,  The 2017 Amendments to Kentucky’s Business Entity Statutes, 56 Louisville Law Review 55 (Fall 2017). HERE IS A LINK to that article.