‘Retaliatory Amendment’ of an LLC Operating Agreement
Like all contracts, operating agreements — which are celebrated for allowing business partners to freely define their relationship by contract — can be amended and modified, according to a post in The LLC Jungle.
Author Kevin Brodehl discusses a recent opinion from the Supreme Court of New York that illustrates how the process of amending an LLC’s operating agreement can sometimes be used to gain the upper hand in a dispute between members.
The case involves a majority of members amending the operating agreement to remove the manager and escalate capital calls.
