Mary,Harold,Harvey,and William form an LLC by contributing $20,000,$50,000,$55,000,and $150,000,respectively.The LLC is designated to be member-managed.When a decision is put to vote,Mary,Harvey,and Harold vote "yes," whereas William votes "no." Which of the following is true in this context?

Question

Quizplus · Accepted Answer

In a member-managed LLC, decisions are usually made by simple majority. Mary, Harvey, and Harold together have 3 votes which is a simple majority of the 4 members. Therefore, their decision prevails over William's vote. The amount of capital invested is not a determining factor in the decision-making process. Option A is incorrect. Option B is incorrect because a simple majority is sufficient to make a decision in a member-managed LLC. Option D is irrelevant as it mentions employees rather than members of the LLC.

Mary,Harold,Harvey,and William Form an LLC by Contributing $20,000,$50,000,$55,000,and $150,000,respectively