Beverly-Killea Limited Liability Company Act to be Replaced

The Beverly-Killea Limited Liability Company Act, enacted in 1994, will be replaced in its entirety by the California Revised Uniform Limited Liability Company Act (the “RULLCA”) on January 1, 2014. The California Revised Uniform Limited Liability Company Act was signed into law September 21, 2012 by Governor Jerry Brown and will apply to all existing California limited liability companies (LLCs) and foreign LLCs registered with the Secretary of State as of that date. This is a major development in California business law as the the Beverly-Killea Limited Liability Company Act had not been significantly changed since its 1994 enactment. As always, do not hesitate to contact us if you have any concern about how this new law will affect your business. In future articles, we will discuss RULLCA’s effect on current practices.