Right to Information

Question 1

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

Answer 1

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

Question 2

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

Answer 2

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

Question 3

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

Answer 3

Upon a member’s demand –>

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

Question 4

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

Answer 4

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

Question 5

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

Answer 5

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