48-230-101 - Board-managed action. - Tennessee Statutes

48-230-101. Board-managed action.

(a)  A member may not commence a proceeding in the right of a domestic (or foreign) LLC unless the member was a member of such LLC when the transaction complained of occurred or unless the member becomes a member through transfer by operation of law from one who was a member at that time.

(b)  Member-managed Action.  Notwithstanding the provisions of subsection (a), if the articles or operating agreement of a domestic (or foreign) member-managed LLC permit derivative actions, a member may commence a proceeding to the same extent as a member of a board-managed LLC.

[Acts 1994, ch. 868, § 1.]