Category: Dissolution Issues

WAIVERS OF RIGHTS TO SEEK JUDICIAL DISSOLUTION

By , February 28, 2014 3:28 pm

This recent article in the ABA’s Business Law Today addresses the impact of the Delaware Court of Chancery Huatuco decision on the above waivers (which I’ve mentioned here in a previous post).  The underlying issue is this:  When should an operating agreement provide for these waivers?  The answer:  (i) Whenever some or all of the members want to prevent the risks associated with possible judicial dissolutions; and (ii) whenever the operating agreement contains some other way of handling member deadlocks, such as Texas shoot-out provisions.