Member's Actions Against LLC

Question 1

What types of actions can be brought by members against an LLC?

Answer 1

1. direct action;

2. derivative action

Question 2

When may a member of an LLC bring a direct action against the LLC?

Answer 2

A member who has been personally injured by LLC can bring a direct action against the LLC

Question 3

When may a member bring a derivative action agains the LLC?

Answer 3

A member can bring a derivative action on behalf of the LLC IF:

• she is a member of LLC at time action is commenced;
• she remains a member of LLC while action continues;
• she makes a demand on the other members/managers; UNLESS demand would be futile