Bill > H4659

This bill amends Section 33-44-409 of South Carolina's limited liability company (LLC) law to modify the duty of loyalty for LLC members. Specifically, the bill creates an exemption to the existing requirement that members refrain from competing with the company before its dissolution. Under the new provision, a member can compete with the company if two conditions are met: first, the company's operating agreement does not contain an enforceable non-compete provision, and second, the member is also a member of another limited liability company. The bill takes effect upon the Governor's approval and applies retroactively to all LLCs existing on or after the effective date. This change provides more flexibility for LLC members by allowing them to potentially participate in competing business ventures under certain circumstances, which could be beneficial for entrepreneurs and business owners who are involved in multiple ventures.

Justice

https://www.scstatehouse.gov/billsearch.php?billnumbers=4659&session=126&summary=B