The Delaware Court of Chancery recently determined that regardless of the absence of a formal title or role, one can be found to be acting as a de facto manager of an LLC, and therefore, subject to personal jurisdiction of the court, as well as being bound by common law fiduciary duties, pursuant to Section
Fiduciary Duty of LLC Managers
Chancery Determines Ownership Interest in LLC and Remedy for Breach of Fiduciary Duties
By Francis Pileggi on
Posted in Chancery Court Updates
Grove v. Brown, C.A. No. 6793-VCG (Del. Ch. Aug. 8, 2013)
Issues Addressed: This post-trial opinion addresses issues involved in a 4-person LLC whose members disputed: (1) what specific ownership interest each had in the LLC; (2) the impact of a member not contributing the required amount of start-up capital; (3) whether there…