(a) A limited liability company is a member-managed limited liability company unless the operating agreement: (1) expressly provides that: (A) the company is or will be manager-managed; (B) the company is or will be managed by managers; or (C) management of the company is or will be vested in managers; or (2) includes words of similar import. (b) In a member-managed company: (1) each member has equal rights in the management and conduct of the company's business; and (2) except as otherwise provided in subsection (d) of this Section, any matter relating to the business of the company may be decided by a majority of the members. (c) In a manager-managed company: (1) each manager has equal rights in the management and conduct of the company's business; (2) except as otherwise provided in subsection (d) of this Section, any matter relating to the business of the company may be exclusively decided by the manager or, if there is more than one manager, by a majority of the managers; and (3) a manager: (A) must be designated, appointed, elected, removed, or replaced by a vote, approval, or consent of a majority of the members; and (B) holds office until a successor has been elected and qualified, unless the manager sooner resigns or is removed. (d) The only matters of a member or manager-managed company's business requiring the consent of all of the members are the following: (1) the amendment of the operating agreement under Section 15-5; (2) an amendment to the articles of organization under Article 5; (3) the compromise of an obligation to make a contribution under Section 20-5; (4) the compromise, as among members, of an obligation of a member to make a contribution or return money or other property paid or distributed in violation of this Act; (5) the redemption of an interest; (6) the admission of a new member; (7) the use of the company's property to redeem an interest subject to a charging order; (8) the consent to dissolve the company under subdivision (2) of subsection (a) of Section 35-1; (9) the consent of members to convert, merge with another entity or domesticate under Article 37 or the Entity Omnibus Act; and (10) the sale, lease, exchange, or other disposal of all, or substantially all, of the company's property with or without goodwill. (e) Action requiring the consent of members or managers under this Act may be taken without a meeting. (f) A member or manager may appoint a proxy to vote or otherwise act for the member or manager by signing an appointment instrument, either personally or by the member or manager's attorney-in-fact. managers; or vested in managers; or and conduct of the company's business; and this Section, any matter relating to the business of the company may be decided by a majority of the members. and conduct of the company's business; this Section, any matter relating to the business of the company may be exclusively decided by the manager or, if there is more than one manager, by a majority of the managers; and removed, or replaced by a vote, approval, or consent of a majority of the members; and elected and qualified, unless the manager sooner resigns or is removed. Section 15-5; under Article 5; contribution under Section 20-5; obligation of a member to make a contribution or return money or other property paid or distributed in violation of this Act; interest subject to a charging order; subdivision (2) of subsection (a) of Section 35-1; another entity or domesticate under Article 37 or the Entity Omnibus Act; and all, or substantially all, of the company's property with or without goodwill.
‹ Prev All Illinois sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.