Bill > S898

This bill amends Massachusetts General Law Chapter 156C, Section 45 to provide additional requirements and guidelines for the appointment and duties of a Liquidating Trustee in receivership proceedings. The key provisions include: (1) the court must ensure the Liquidating Trustee is free of conflicts of interest, and the parties have an opportunity to object to any proposed Trustee; (2) the court must determine which claims are derivative and belong to the LLC, which the Trustee will have exclusive authority to litigate or settle; (3) the Trustee has a fiduciary duty to the LLC and must obtain court approval for major actions; (4) the Trustee must provide notice to creditors and allow them to file claims; (5) the court has discretion to approve settlements proposed by the Trustee; and (6) the Trustee has various reporting and administrative duties. The bill aims to provide more oversight and protect the interests of the LLC and its stakeholders in receivership proceedings.

Justice

https://malegislature.gov/Bills/190/S898