This office lease clause states that the tenant shall not make any alterations or other physical changes in or about the Demised Premises without the owner's prior consent in each instance.
This office lease clause states that the tenant shall not make any alterations or other physical changes in or about the Demised Premises without the owner's prior consent in each instance.
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Main drawbacks: More expensive to create than a partnership or sole proprietorship. State laws for creating LLCs may not reflect the latest federal tax changes. Inability to obtain VC funding. Inability to provide employees with stock options.
New Jersey Law The New Jersey Shareholders' Protection Act, N.J.S.A. 14A:10A-1, et seq. protects minority shareholders, who suffer oppression, which is defined as situations where the majority shareholders act in a way that is illegal, fraudulent, or oppressive to the minority shareholders.
A fiduciary duty may be created by an agreement between the parties (e.g., a contract), or the relationship may be designated as a fiduciary relationship by law. Fiduciaries are entrusted to act in the best interests of the parties they are serving and are therefore expected to avoid any conflicts of interest.
Fiduciary Duties in a Limited Liability Company The fiduciary duties owed by members in an LLC are the duty of care and the duty of loyalty. These duties are defined by statute and case law, but they may be amended by agreement of the members in the LLC's operating agreement.
Even in a manager-managed LLC, certain major events require the unanimous consent of the members if the operating agreement is silent on the particular issue. For instance, the members would have to approve the sale of a substantial portion or all the assets of the LLC.
Fiduciary Duties Owed in Member-Managed LLC In some cases, LLC members may decide to participate in the management of their LLC. Those LLC members who operate the business owe the fiduciary duties of loyalty and reasonable care to the non-managing LLC owners.
No, New Jersey statutes do not state that LLCs are required to have an operating agreement. However, you'll need an operating agreement for several important tasks, like opening a bank account for your LLC and maintaining limited liability status.