Roseland, N.J. September 2013, USLAW Magazine Features an article by John D. Cromie and Noel D. Humphreys,"Popular Approaches to Judicial Dissolution of an LLC Under RULLCA’s 'NOT REASONABLY PRACTICABLE' Standard"
Three different approaches have developed in various states to persuade judges to dissolve a limited liability company when “it is not reasonably practicable to carry on the company’s activities in conformity with the certificate of organization and the operating agreement.” That’s the standard in the Revised Uniform Limited Liability Company Act or “RULLCA” and similar statutes for when a judge can order dissolution of an LLC.
Eight states (California, Florida, Idaho, Iowa, Nebraska, New Jersey, Utah and Wyoming) plus the District of Columbia have adopted RULLCA in whole or in part since 2006. RULLCA’s promoters intend that it will take into account the best features of prior LLC statutes. These jurisdictions adopted the statutory language that permits a judge to dissolve an LLC under this “not reasonably practicable” standard.
Click here for full article
