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The Vermont Statutes Online
Title
11
:
Corporations, Partnerships and Associations
Chapter
021
:
LIMITED LIABILITY COMPANIES
Subchapter
004
:
RELATIONS OF MEMBERS TO EACH OTHER AND TO LIMITED LIABILITY COMPANY
[Section 3054 repealed effective July 1, 2016.]
[Section 3054 repealed effective July 1,
2016.]
§
3054. Management of limited liability company
(a) In a
member-managed limited liability company:
(1) each member
has equal rights in the management and conduct of the company's business; and
(2) except as otherwise
provided in subsection (c) of this section or in subdivision 3101(3)(A) of this
title, any matter relating to the business of the company may be decided by a
majority of the members.
(b) In a
manager-managed limited liability company:
(1) except as
otherwise provided in subsection (c) of this section, the managers have the
exclusive authority to manage and conduct the company's business;
(2) except as
specified in subsection (c) of this section or in subdivision 3101(3)(A) of
this title, any matter relating to the business of the company may be
exclusively decided by the manager or, if there is more than one manager, by a
majority of the managers; and
(3) a manager:
(A) must be
designated, appointed, elected, removed or replaced by a vote, approval or
consent of a majority of the members; and
(B) holds office
until a successor has been elected and qualified, unless the manager sooner
resigns or is removed.
(c) Matters of a
limited liability company's business requiring the consent of all the members
are:
(1) the
amendment of the operating agreement under section 3003 of this title;
(2) the
authorization or ratification of acts or transactions under subdivision
3003(b)(2)(B) of this title which would otherwise violate the duty of loyalty;
(3) an amendment
to the articles of organization under section 3024 of this title;
(4) the
compromise of an obligation to make a contribution under subsection 3052(b) of
this title;
(5) the
compromise, as among members, of an obligation of a member to make a contribution
or return money or other property paid or distributed in violation of this
chapter;
(6) the making
of interim distributions under subsection (a) of section 3055 of this title;
(7) the
admission of a new member;
(8) the use of
the company's property to redeem an interest subject to a charging order;
(9) a waiver of
the right to have the company's business wound up and the company terminated
under subsection 3102(b) of this title; and
(10) the sale,
lease, exchange or other disposal of all, or substantially all, of the
company's property with or without goodwill.
(d) Action
requiring the consent of members or managers under this chapter may be taken at
a meeting of the members or managers. An action that may be taken at a meeting
of the members or managers may be taken without a meeting if the action is
taken by all of the members or managers entitled to vote on the action. The
action must be evidenced by one or more consents reflected in a record
describing the action taken and signed by all of the members or managers
entitled to vote on the action.
(e) A member or
manager may appoint a proxy to vote or otherwise act for the member or manager
by signing an appointment instrument, either personally or by the member's or
manager's attorney-in-fact. An appointment of a proxy is valid for 11 months
unless a different time is specified in the appointment instrument. An
appointment is revocable by the member or manager unless the appointment form
conspicuously states that it is irrevocable and the appointment is coupled with
an interest, in which case the appointment is revoked when the coupled interest
is extinguished. (Added 1995, No. 179 (Adj. Sess.), § 4.)