A member of a member-managed limited liability company and a manager of a manager-managed LLC owe a fiduciary duty of care to the LLC not to engage in a known violation of law,intentional conduct,reckless conduct,or grossly negligent conduct that injures the LLC.

Question

Quizplus · Accepted Answer

Both member-managed and manager-managed LLCs require members or managers to act in good faith and in the best interest of the company. This includes not engaging in illegal or intentionally harmful actions. However, the specific duties and responsibilities of members and managers may differ between the two management structures.

A Member of a Member-Managed Limited Liability Company and a Manager