The new law, originally passed the Minnesota Legislature in 2015, may bring significant changes to governance and management, operating agreements, and other aspects of your business.
To avoid unintended consequences such as having membership interests voted as one vote per one member instead of based on the member's ownership interest, a change to the company's Operating Agreement will need to be made.
Two of the outcomes likely to occur under the new act unless specifically revised in the organization's Operating Agreement include:
- All members have an equal vote no matter how many membership units they own.
- An Operating Agreement may be changed by oral agreement or by course of conduct unless prohibited to only being changed in writing by the Operating Agreement.
Learn more from the Minnesota Secretary of State.
Depending upon your circumstance, you may wish to consult with your attorney to ensure that your company is in compliance. Contact Ron Brandenburg to learn more.