1.0Arizona LLC Lawhttps://www.keytlaw.com/azllclawRichard Keythttps://www.keytlaw.com/azllclaw/author/1llclawyer/rich600338<blockquote class="wp-embedded-content" data-secret="KTuwieSnr7"><a href="https://www.keytlaw.com/azllclaw/2017/11/new-llc-act/">Highlights of the Proposed New Arizona Limited Liability Company Act</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.keytlaw.com/azllclaw/2017/11/new-llc-act/embed/#?secret=KTuwieSnr7" width="600" height="338" title="“Highlights of the Proposed New Arizona Limited Liability Company Act” — Arizona LLC Law" data-secret="KTuwieSnr7" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script type="text/javascript"> /* <![CDATA[ */ /*! This file is auto-generated */ !function(d,l){"use strict";l.querySelector&&d.addEventListener&&"undefined"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),o=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),c=new RegExp("^https?:$","i"),i=0;i<o.length;i++)o[i].style.display="none";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute("style"),"height"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):"link"===t.message&&(r=new URL(s.getAttribute("src")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",function(){for(var e,t,s=l.querySelectorAll("iframe.wp-embedded-content"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute("data-secret"))||(t=Math.random().toString(36).substring(2,12),e.src+="#?secret="+t,e.setAttribute("data-secret",t)),e.contentWindow.postMessage({message:"ready",secret:t},"*")},!1)))}(window,document); //# sourceURL=https://www.keytlaw.com/azllclaw/wp-includes/js/wp-embed.min.js /* ]]> */ </script> The text below was given to Richard Keyt by James Reynolds, the co-chairman of an Arizona State Bar subcommittee that has been drafting the proposed new Arizona LLC law that would replace Arizona’s current LLC. Proposed New Arizona Limited Liability Company Act The new proposed Arizona LLC Act is based in large part upon the Revised Uniform Limited Liability Act with amendments adopted by the Uniform Laws Commission in 2013. Although the new Arizona act departs in important ways from the uniform act to preserve Arizona procedures and policies embedded in existing law, it follows the organization of the uniform law and incorporates many concepts from the uniform law to fill gaps in Arizona’s existing LLC statute. The existing Arizona LLC Act was drafted more than 25 years ago at a time when only a handful of states had enacted LLC laws and no model acts were available. By drawing upon the uniform act as its baseline, the new act takes advantage of the efforts of many experienced lawyers and academics from around the country who drafted and amended the uniform act from time to time over the last quarter century. Principal Benefits of New Proposed LLC Act: 1. The new act centralizes in one section a list of the statutory rules that cannot be varied and the rules that can be modified to specified limits. The new act allows more freedom of contract than current law, including regarding each member’s rights to obtain financial information and to bring derivative actions. 2. The new act will clarify the fiduciary duties owed by the managers and members (duty of loyalty, duty of care and duty of disclosure), as well as expressly allow the modification of those [...]