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Flashcards in Right to Information Deck (5)
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1

In a member-managed LLC, what is a member's right to information?

In a member-managed LLC, a member has a right to

- INSPECT AND COPY any record concerning the LLC's activities, financial condition etc that is
- MATERIAL to member's rights and duties

2

In a member-managed LLC, what is the AUTOMATIC obligation of members and of the LLC to furnish information?

In a member-managed LLC, the LLC AND its members MUST:

-AUTOMATICALLY furnish any information concerning the LLC's activities, financial condition etc,
-that they KNOW is MATERIAL to the exercise of a member's rights and duties; UNLESS
-they REASONABLY BELIEVE the member already knows the information

3

In a member-managed LLC, what is the obligation of members and of the LLC to furnish information on demand of a member?

Upon a member's demand -->

The LLC and its members MUST furnish other information UNLESS the demand is UNREASONABLE or IMPROPER

4

In a MANAGER-managed LLC, what is the Manager's right to information?

in a Manager-managed llc, the manager's right to information is the same as a member's right to information in a member-managed LLC

5

In a manager-managed LLC, what is a member's right to information?

In a manager-managed LLC, the MEMBERS have a right to:

inspect and copy any record regarding the LLC's activities, financial condition, etc as is JUST and REASONABLE, IF:

1. the member seeks the info for a purpose MATERIAL to the member's interest as a member; AND

2. the member makes a demand to the LLC describing with REASONABLE PARTICULARITY the info sought AND the purpose for seeking it; AND

3. the information sought is DIRECTLY CONNECTED to the member's purpose