Post by Sapphire Capital on Aug 19, 2008 2:09:03 GMT 4
Reforming Limited Liability Company Fiduciary Litigation
Larry E. Ribstein
University of Illinois College of Law
June, 2008
U Illinois Law & Economics Research Paper No. LE08-017
Abstract:
Derivative suits are designed for publicly held corporations. In limited liability companies, the remedy creates significant costs and complications. These costs are unnecessary because more appropriate remedies member-authorized and direct suits are available. The application of the derivative remedy to LLCs is an example of lawmakers applying rules across business entities without adequately thinking through which rules belong in a coherent business association statute.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1146662_code517200.pdf?abstractid=1146662&mirid=2
Larry E. Ribstein
University of Illinois College of Law
June, 2008
U Illinois Law & Economics Research Paper No. LE08-017
Abstract:
Derivative suits are designed for publicly held corporations. In limited liability companies, the remedy creates significant costs and complications. These costs are unnecessary because more appropriate remedies member-authorized and direct suits are available. The application of the derivative remedy to LLCs is an example of lawmakers applying rules across business entities without adequately thinking through which rules belong in a coherent business association statute.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1146662_code517200.pdf?abstractid=1146662&mirid=2