SB425 (2018) Detail

Relative to limited liability companies.


CHAPTER 222

SB 425 - FINAL VERSION

 

 

2018 SESSION

18-2851

03/05

 

SENATE BILL 425

 

AN ACT relative to limited liability companies.

 

SPONSORS: Sen. Innis, Dist 24; Sen. Gannon, Dist 23; Sen. Giuda, Dist 2; Sen. Reagan, Dist 17; Sen. Watters, Dist 4; Rep. Emerick, Rock. 21; Rep. Bean, Rock. 21; Rep. Janvrin, Rock. 20; Rep. Abrami, Rock. 19

 

COMMITTEE: Commerce

 

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ANALYSIS

 

This bill eliminates fiduciary rights of former members of limited liability companies and modifies requirements for limited liability company mergers.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

18-2851

03/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to limited liability companies.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

222:1  Rights of Former Members Eliminated.  Amend RSA 304-C:99 to read as follows:

304-C:99  Certain Effects of Dissociation[; Fiduciary Rights of Former Members].

I.  If, after dissociation, a former member retains all or any part of the former member's limited liability company interest, the former member shall be entitled to the following rights:

(a)  Subject to reasonable restrictions as determined from time to time by the limited liability company, the former member shall be entitled to inspect and copy at the former member's own expense all information reasonably relevant to allocations and distributions to the former member in respect of the former member's limited liability company interest.

(b)  Unless the operating agreement provides otherwise, the former member may invoke the dispute resolution provisions of RSA 304-C:186 with respect to the former member's limited liability company interest.

II.  Subject to any contrary provision in [paragraph IV or] RSA 304-C:106 through RSA 304-C:117 and unless the operating agreement provides otherwise, a member who has been dissociated from a limited liability company shall have no fiduciary or other duties to the limited liability company.

III.  A person who has been dissociated from the limited liability company shall have no liabilities to the limited liability company except liabilities that accrued to the member before the member's dissociation and that were not discharged before or concurrent with the member's dissociation.

[IV.  Unless the operating agreement provides otherwise, former members and transferees of the limited liability company interests of former members may claim in the superior court under the implied contractual covenant of good faith and fair dealing that they are entitled to fiduciary rights against the limited liability company and its members.]

222:2  Mergers of Limited Liability Companies.  Amend RSA 304-C:155 to read as follows:

304-C:155  Mergers of Limited Liability Companies [With Other Business Entities]--In General.

I.  Unless the operating agreement provides otherwise and subject to any law applicable to other business entities or foreign limited liability companies that are parties to the merger, one or more domestic limited liability companies may merge with or into one or more foreign limited liability companies or domestic limited liability companies or other business entities [authorized by applicable statute to merge with a limited liability company], with [the limited liability company or other business entity, as the merger agreement shall provide,] any party to the merger being the surviving entity.

II.  Rights or securities of or interests in a constituent entity may be exchanged for or converted into cash, property, obligations, rights, or securities of or interests in the surviving entity or of any other business entity.

222:3  Effective Date.  This act shall take effect 60 days after its passage.

 

Approved: June 08, 2018

Effective Date: August 07, 2018

Links

SB425 at GenCourtMobile

Action Dates

Date Body Type
Feb. 13, 2018 Senate Hearing
Feb. 22, 2018 Senate Floor Vote
March 29, 2018 House Hearing
April 17, 2018 House Exec Session
House Floor Vote
May 2, 2018 House Floor Vote

Bill Text Revisions

SB425 Revision: 4141 Date: June 13, 2018, 4:31 p.m.
SB425 Revision: 3714 Date: May 3, 2018, 10:57 a.m.
SB425 Revision: 2771 Date: Dec. 20, 2017, 12:03 p.m.

Docket

Date Status
Jan. 3, 2018 To Be Introduced 01/03/2018 and Referred to Commerce; SJ 1
Feb. 13, 2018 Hearing: 02/13/2018, Room 100, SH, 01:30 pm; SC 6
Feb. 22, 2018 Committee Report: Ought to Pass, 02/22/2018; SC 8
Feb. 22, 2018 Ought to Pass: MA, VV; OT3rdg; 02/22/2018; SJ 5
March 7, 2018 Introduced 03/07/2018 and referred to Commerce and Consumer Affairs HJ 7 P. 51
March 29, 2018 Public Hearing: 03/29/2018 10:30 AM LOB 302
April 3, 2018 Subcommittee Work Session: 04/03/2018 01:15 PM LOB 302
April 10, 2018 Subcommittee Work Session: 04/10/2018 01:45 PM LOB 302
April 17, 2018 Executive Session: 04/17/2018 01:30 PM LOB 302
May 2, 2018 Committee Report: Ought to Pass for 05/02/2018 (Vote 16-0; CC) HC 17 P. 5
Committee Report: Ought to Pass (Vote 16-0; CC)
May 2, 2018 Ought to Pass: MA VV 05/02/2018
May 10, 2018 Enrolled 05/10/2018
May 10, 2018 Enrolled (In recess 05/10/2018); SJ 18
June 8, 2018 Signed by the Governor on 06/08/2018; Chapter 0222; Effective 08/07/2018