Deadlock-Breaking Mechanisms in LLCs: Avoiding Litigation and Dissolution When Members and Managers Fail to Agree

Peter A. Mahler will be a speaker on the panel for CLE “Deadlock-Breaking Mechanisms in LLCs: Avoiding Litigation and Dissolution When Members and Managers Fail to Agree.”

Deadlocks in an LLC typically arise when members or managers fail to reach an agreement or obtain the required approval for a course of action. The failure to provide deadlock-breaking mechanisms in the operating agreement can result in significant expense, loss of time, and possible litigation. It may also result in a judicial dissolution of the LLC.

This CLE course will provide corporate counsel with a framework for adopting deadlock-breaking mechanisms in limited liability company (LLC) operating agreements and potential state law consequences when no such arrangements are in place. The panel will also discuss arbitration and mediation provisions as alternatives to litigation or judicial dissolution.