Description
Exit rights and transfer provisions in LLC agreements are vital for ensuring that clients have the necessary liquidity rights to sell their ownership stakes at fair market value, especially when dealing with minority stakes in closely held companies. However, challenges can arise if these arrangements are not clearly defined at the outset and the provisions are not unambiguously drafted, guaranteeing they function smoothly throughout the member’s involvement and reflect the agreed-upon protections.
The implications of a member’s withdrawal and the effect it has on the LLC and remaining members can substantially affect the dealings of a business moving forward. Join Noel Humphreys, a seasoned practitioner who works closely with partnerships and limited liability companies, will delve into the unique concerns relating to the withdrawal, resignation, and dissociation of members.
Topics include:
> Key issues that are often negotiated while drafting
> Pitfalls to avoid when negotiating and drafting common provisions
> Unexpected rules and underlying assumptions of the entity
> Determining the framework most appropriate for liquidity rights
> Assessing valuation and economic interests of majority and minority members
> What happens when there is more than one operating agreement?
> Issues that can crop up during arbitration
> What do the latest cases have to say?
This course is essential for legal counsel overseeing the transferring of rights for members of private companies.