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The Vermont Statutes Online
Title
11
:
Corporations, Partnerships and Associations
Chapter
021
:
LIMITED LIABILITY COMPANIES
Subchapter
003
:
RELATIONS OF MEMBERS AND MANAGERS TO PERSONS DEALING WITH LIMITED LIABILITY COMPANY
[Section 3041 repealed effective July 1, 2016.]
[Section 3041 repealed effective July 1,
2016.]
§
3041. Agency of members and managers
(a) Subject to
subsections (b) and (c) of this section:
(1) each member
is an agent of the limited liability company for the purpose of its business;
(2) an act of a member,
including the signing of an instrument in the company name, for apparently
carrying on in the ordinary course the company's business or business of the
kind carried on by the company binds the company, unless the member had no
authority to act for the company in the particular matter and the person with
whom the member was dealing knew or had received notice that the member lacked
such authority; and
(3) an act of a
member which is not apparently for carrying on in the ordinary course the
company's business or business of the kind carried on by the company binds the
company only if the act was authorized by the other members.
(b) Subject to
subsection (c) of this section, in a manager-managed limited liability company:
(1) a member is
not an agent of the company for the purpose of its business solely by reason of
being a member;
(2) each manager
is an agent of the company for the purpose of its business;
(3) an act of a
manager, including the signing of an instrument in the company name, for
apparently carrying on in the ordinary course the company's business or
business of the kind carried on by the company binds the company, unless the
manager had no authority to act for the company in the particular matter and
the person with whom the manager was dealing knew or had notice that the
manager lacked such authority; and
(4) an act of a
manager which is not apparently for carrying on in the ordinary course the
company's business or business of the kind carried on by the company binds the
company only if the act was authorized under subdivision 3054(b)(2) of this
title.
(c) Unless the
articles of organization limit their authority, any member of a member-managed
limited liability company, or any manager of a manager- managed company, may
sign and deliver any instrument transferring or affecting the company's
interest in real property, which instrument is conclusive in favor of a person
who gives value without knowledge of the lack of the authority of the person
signing and delivering the instrument. (Added 1995, No. 179 (Adj. Sess.), § 4.)