SB113 Alabama 2015 Session

Summary

Primary Sponsor

Arthur Orr Senator

Republican

Session

Regular Session 2015

Title

Limited Liability Law, governing law clarified, liability for wrongful distributions clarified, Secs.10A-5A-1.05, 10A-5A-1.06, 10A-5A-1.07, 10A-5A-4.06 am'd.

Description

Under existing law, the Alabama Limited Liability Company Law of 2014, provides for the formation of limited liability companies.

This bill would clarify that the law of the state in which a foreign limited liability company is formed governs the internal affairs of that entity.

This bill would clarify the treatment of a limited liability company and a foreign limited liability company for purposes of certain taxation.

This bill would clarify that, under normal circumstances, the liability of a member of a limited liability company for wrongful distributions is limited to the amount of the distributions received.

This bill would also make technical corrections in cross references.

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Subjects

Corporations