DeCotiis, FitzPatrick, Cole & Giblin, LLP published a new white paper to assist limited liability companies (LLC) seeking to navigate New Jersey's Revised Uniform Limited Liability Company Act (RULLCA or "The Act" herein). These changes are set to take effect March 1, 2014.
The Act touches on a wide-range of activities that govern LLC operation. In fact, The Act will make changes to the ways LLCs operate in respects to distributions; management and member consent; fiduciary duties; minority oppression; resignation or withdrawl; indemnification; operating agreements; and statements of authority.
The Act makes several changes to default rules that will govern a LLC's operations and its members in the absence of an operating agreement. Further, The Act may result in a change in the written terms applicable to the members even with respect to existing LLCs that have operating agreements. It is important for members of an LLC without a written operating agreement to consult with counsel to create an agreement that properly reflects the business and economic arrangements of the members, and for members of an LLC with an existing agreement to review their operating agreements to determine what amendments, if any, they should make in response to the changes which will take effect on March 1, 2014.
You can view the DeCotiis firm's white paper here. But bear in mind, The Act makes other significant changes that are not discussed in the white paper. If you have any questions regarding the impact of The Act on your LLC or operating agreement, please contact Joseph DeCotiis, Managing Partner, DeCotiis, FitzPatrick & Cole at (201) 907-5203.