Limited Liability Company Protected Series Act; establishment of protected series. (HB1984)

Introduced By

Del. Michael Webert (R-Marshall)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Limited Liability Company Protected Series Act. Provides for the creation by a limited liability company (LLC) of one or more protected series. The measure provides that each protected series may have different ownership, management structures, assets, and liabilities. Each protected series may function in a manner analogous to a separate legal entity within the LLC that established the protected series, which is referred to as the series LLC. The measure provides a process through which debts and obligations of one protected series are neither the debts nor obligations of any other protected series nor of the series LLC. Under the measure, a separate public filing is required to establish each protected series of a series LLC. The measure specifies rules for disregarding the internal liability shields that protect the assets of one protected series from the creditors of another. The measure provides that assets not properly associated with a protected series may be subject to the claims of creditors even if the internal shields among series remain intact. The measure is based on the December 8, 2016, draft of the uniform Limited Liability Company Protected Series Act prepared by the National Conference of Commissioners on Uniform State Laws. The measure has a delayed effective date of July 1, 2018. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/10/2017Committee
01/10/2017Prefiled and ordered printed; offered 01/11/17 17103516D
01/10/2017Referred to Committee on Commerce and Labor
01/18/2017Impact statement from SCC (HB1984)
01/26/2017Referred from Commerce and Labor
01/26/2017Referred to Committee for Courts of Justice
01/31/2017Assigned Courts sub: Civil Law
02/01/2017Subcommittee recommends striking from docket
02/07/2017Left in Courts of Justice