Each member of a member managed limited liability company has rights in the management of the business of the limited liability company based upon the amount of the capital contribution,and those rights may not be modified by agreement.

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Quizplus · Accepted Answer

This statement is false. In a member managed limited liability company, the members may modify their rights in the management of the business by agreement, as long as this is done in compliance with the company's operating agreement and state law. The amount of capital contribution is only one factor in determining a member's management rights.

Each Member of a Member Managed Limited Liability Company Has