1.0Barna, Guzy & Steffen, LTD.https://www.bgs.com/blogBradley Kletscherhttps://www.bgs.com/blog/author/bradley-a-kletscher/Minnesota's New Limited Liability Company Act - Barna, Guzy & Steffen, LTD.rich600338<blockquote class="wp-embedded-content" data-secret="Sw8n55dJbJ"><a href="https://www.bgs.com/blog/2015/06/30/minnesotas-new-limited-liability-company-act/">Minnesota's New Limited Liability Company Act</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.bgs.com/blog/2015/06/30/minnesotas-new-limited-liability-company-act/embed/#?secret=Sw8n55dJbJ" width="600" height="338" title="“Minnesota's New Limited Liability Company Act” — Barna, Guzy & Steffen, LTD." data-secret="Sw8n55dJbJ" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script type="text/javascript">
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On April 8, 2014, Governor Dayton signed into law the Minnesota Revised Uniform Limited Liability Company Act which will be codified in new Chapter 322C of the Minnesota Statutes (the “MRULLC”). The MRULLC will become effective on August 1, 2015 for all Limited Liability Companies (“LLC”) formed on or after that date. LLCs in existence on July 31, 2015 will remain governed by the present Minnesota LLC Act, Chapter 322B (“Chapter 322B”), but may elect after that date to be governed by the New Act. Any Chapter 322B LLCs that have not elected to be governed by the New Act will automatically become subject to the New Act on January 1, 2018. Significant aspects of the MRULLC, compared to Chapter 322B, include the following: Model change toward partnership Chapter 322B closely resembles the Minnesota Business Corporation Act. Chapter 322Bs default rules establish a corporate structure, with members, a board of governors and managers more analogous to shareholders, a board of directors and officers in a corporation. The MRULLC defaults to member management (similar to a partnership), but permits manager management and board management. Board management is to permit existing LLCs to continue with their current structures. Operating Agreements Chapter 322B contemplates that an LLC will have a member control agreement and bylaws, which...