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Old 09-26-2009, 02:52 PM
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Member's Fiduciary Duty to LLC

What is the name of your state (only U.S. law)? KS

KS LLC with 4 equal partners (25% each). One of the members is the sole investor to the LLC. Provided a credit line as loan to LLC with separate loan docs and personal guarantees of all members. The loan agreement provides near GOD power to investor should it be in default. Regardless of loan agreement, doesn't every member of the LLC have a fiduciary responsibility they must uphold to company? It states this in Op agreement specifically. No mention in loan agreement of how lender's rights pertain to also being member of LLC. This appears to be major conflict of agreements. Any ideas or suggestions. Already have company attorney on it but like to contribute as much as possible. Thanks.
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Old 09-26-2009, 04:23 PM
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A member does not have a fiduciary duty to other members.
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Old 09-26-2009, 05:28 PM
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Quote:
Originally Posted by tranquility View Post
A member does not have a fiduciary duty to other members.
Hi Tranquility,
Thanks for your input. My question was whether each member has a fiduciary duty or responsibility to the LLC or company as a whole, not to each member individually. If there is no difference, please feel free to explain. Thanks again.
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