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Legal Articles

Florida Revised LLC Act to Take Effect for All LLCs on January 1, 2015
s of January 1, 2015, the Florida Revised Limited Liability Company Act will become mandatory and applicable to all Florida LLCs, including those preexisting the Act’s effective date. The Act had already gone into effect on January 1 of this year for all subsequently formed or registered LLCs or those that voluntarily opted in. Although there are many significant changes under the Revised Act which should be carefully reviewed with counsel, the following are a few of the most significant. Non-waivable provisions. Most provisions of both the previous and Revised Act are default provisions—i.e. provisions that only come into play if an LLC has not provided otherwise in its governance documents. The Revised Act put into place 17 “non-waivable provisions,” which prohibit LLCs from including conflicting terms in their operating agreements. Among these provisions are prohibitions and limitations on the LLC’s ability to (i) limit liability and indemnify members and managers in certain cases, (ii) waive judicial dissolution, (iii) restrict a member from maintaining a derivative action or bringing a direct legal action against the LLC, another member, or any manager; (iv) unreasonably restrict rights and duties related to inspection of records, (v) vary the power of a member to dissociate, and (vi) vary the right of a member to approve a merger, interest exchange, or conversion.

United States | 02/13/2015


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