At the outset of any relationship, be it professional or personal, the parties to the relationship are not interested in discussing how it will end. For various reasons, many investors in limited liab…
Exit Stage Left: Getting out of Your Limited Liability Company
In Brief
- Although section 18-802 of the DLLCA provides an exit mechanism for members of an LLC, recent case law has shown that the Delaware courts are loath to dissolve an LLC merely because of changed circumstances.
- Given the contractual flexibility provided by the DLLCA, members of an LLC and counsel drafting the LLC agreement should include an exit mechanism that meets the goals and objectives of the members.
- Possible exit mechanisms include a right to terminate the LLC upon the occurrence of a specified event, among others.
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