Disputes Over
Member Status Continue to Royal the LLC Waters
Peter Mahler, in his blog New
York Business Divorce, on July 13 posted Disputes Over Member Status Continue to Royal the LLC Waters. HERE IS A LINK to that posting. I would highly recommend it to you.
Therein, Peter
reviews a trio of recent decisions from New York, all involving the question of
who is (or is not) a member of the LLC, particularly as contrasted with the
person who owns only an economic right in the venture. Each of these decisions
carries an important lesson, namely how crucial it is that contemporaneous
documentation of changes in membership and economic ownership of an LLC must be
maintained. Absent contemporaneous records, there will invariably be disputes
requiring the intervention of a court or an arbitrator, often in years after
the events in question with the resultant feeding of memories and losses of
documentation.
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