Tuesday, March 19, 2019

More Certified Questions: Fiduciary Duties in Arizona LLCs


More Certified Questions: Fiduciary Duties in Arizona LLCs

      Earlier this year, the bankruptcy court in Arizona asked the Arizona Supreme Court to answer certified questions with respect to fiduciary duties in LLCs. In re: Swift Air, LLC, Case No.: 2:12-BK-14362-DPC (Bankr. D. Ariz. Jan. 29, 2019).
In this action, the bankruptcy court asked the Arizona Supreme Court to address two questions, namely:
1. Whether managers and/or members of an Arizona LLC owe fiduciary duties to the LLC?
2. Whether the terms of an Arizona LLC’s operating agreement may lawfully limit or eliminate those fiduciary duties?
No word yet as to whether the Arizona Supreme Court will agree to answer these questions.

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