1.0Arizona LLC Lawhttps://www.keytlaw.com/azllclawRichard Keythttps://www.keytlaw.com/azllclaw/author/1llclawyer/rich600338<blockquote class="wp-embedded-content" data-secret="eyfs8CI1kZ"><a href="https://www.keytlaw.com/azllclaw/2018/05/toto/">Manager of an Arizona Manager Managed LLC Says “Toto, We’re Not in Kansas Anymore”</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.keytlaw.com/azllclaw/2018/05/toto/embed/#?secret=eyfs8CI1kZ" width="600" height="338" title="“Manager of an Arizona Manager Managed LLC Says “Toto, We’re Not in Kansas Anymore”” — Arizona LLC Law" data-secret="eyfs8CI1kZ" 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> Why LLCs Must Have an ALLCA Compliant Operating Agreement: Reason #8 Yes Dorothy, beginning September 1, 2019, Arizona manager managed LLCs will no longer be in Kansas limited liability company land.  Instead they will be in liability company land, a new environment in which a manager of an Arizona manager managed LLC can be sued for violating one or more of the fiduciary duties the new Arizona Revised Limited Liability Company Act (ALLCA) levies on managers of manager managed Arizona LLCs..  When ALLCA becomes effective all managers of manager managed Arizona LLCs will have numerous new duties the violation of which will give members and the company causes of action to sue managers.  This is why I call ALLCA the Arizona liability company act. What are the New Manager Duties under ALLCA? Arizona Revised Statutes Section 29-3409 levies the following new fiduciary duties on all managers of Arizona LLCs that are manager managed. ALLCA is applies to all Arizona LLCs formed after August 31, 2019, and all Arizona LLCs after August 31, 2020.  Section 29-3409 states: I. A manager of a manager-managed limited liability company owes to the company and the members the duties of loyalty and care stated in subsections j and k of this Section. J. The fiduciary duty of loyalty of a manager in a manager-managed limited liability company includes the following duties: 1. to account to the company and hold as trustee for the company any property, profit or benefit derived by the manager to which the manager is not entitled: (a) in the conduct or winding up of the company’s activities and affairs. (b) from a use by the manager of the company’s property. (c) from the appropriation of a company [...]