A ________ of a manager-managed LLC owes no fiduciary duty of loyalty or care to the LLC or its other members and is treated equally to a shareholder in a corporation.

Question

Quizplus · Accepted Answer

A nonmanager member of a manager-managed LLC does not owe fiduciary duties of loyalty or care to the LLC or its other members, similar to how shareholders in a corporation are not obligated to these duties. In a manager-managed LLC, the managers are the ones who owe fiduciary duties to the LLC and its members, not the nonmanager members.

A ________ of a Manager-Managed LLC Owes No Fiduciary Duty