News & Resources

Ryan McManus and Nate McConarty author "LLC’s Majority Member May Owe Fiduciary Duties to Minority Members"

Ryan P. McManus, Nathan N. McConarty

11/6/2018

In a recent decision, the Massachusetts Supreme Judicial Court (SJC) held that the majority member of a Massachusetts limited liability company (LLC) was subject to the same fiduciary duties as a majority shareholder in a Massachusetts close corporation. The court based its conclusion on a review of the operating agreement of the LLC in question, finding that it included protections similar to those afforded to close corporation minority stockholders. 

This case will have lasting implications for both current and prospective business owners as they decide how to structure organizations and what provisions to include in their operating agreements.

To read the full advisory, please click below:
Client Alert Allison v Erikson

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