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 regarding the LLC's business is put to vote,Mary,Harvey,and Harold vote "yes" and William votes "no." Which of the following is true in this context?

Question

Quizplus · Accepted Answer

In a member-managed LLC, decisions are made by a simple majority vote. In this case, the majority vote is "yes" by Mary, Harvey, and Harold, which means their decision prevails. The total amount of capital contributed by each member is not relevant in this context. Option A is incorrect because investing more capital does not give a member more voting power in a member-managed LLC. Option B is incorrect because a decision can be made by a simple majority vote even if it is not unanimous. Option D is irrelevant as the question does not mention any employees of the company.

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