Ten persons formed the Magic City Company,LLC for a term of twenty years,with no designation as to whether the corporation is "member-managed" or "manager-managed." Shortly before the expiration of this period,the members held a vote on whether to continue the business for an additional five years.The vote was eight votes in favor and two against continuing.As a result:
A) the limited liability company will continue for an additional five years.
B) the limited liability company will continue as an "at-will" limited liability company.
C) the limited liability company will be dissolved at the end of the original twenty-year term.
D) the court will assume operational control of the limited liability company upon expiration of the original term.
E) the limited liability company will continue for an additional twelve months.
Correct Answer:
Verified
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