Amendments to the Delaware LLC Law
Like many states, Delaware allows businesses to incorporate as limited liability companies or LLCs. The law has undergone significant amendments for 2010. Businesses seeking LLC designation should consult with a Delaware attorney to ensure compliance with the new law.
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Partnership Agreements
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One of the more significant changes is that partnership agreements need not be in writing. Previously, the Delaware Supreme Court held that LLC partnership agreements must be in writing. However, the legislature has overturned that ruling with the 2010 amendments.
Power of Attorney
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The other major change concerns the authority of partners in the LLC to act on behalf of the company. Partners must explicitly agree to limit each partner's authority to act for the business. Prior to the new law, partners could agree to limit each other's authority, but it wasn't required by law.
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Other Changes
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Other issues that have been revised include electronic service of process to the Secretary of State, short form mergers by non-parent organizations, a new 30-day deadline for responding to information requests, rules on assigning interest in the LLC to a new partner and new guidelines for foreign LLCs.
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References
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