What are some of the major issues that should be in addressed in an Operating Agreement?
The following is a list of some of the important issues not addressed by the Arizona Limited Liability Company Act that can be included in an Operating Agreement to minimize future disputes among the members: 1. Set Rules for Admitting New Members: The Act provides that after a limited liability company files its initial articles of organization, a person or entity may be admitted as an additional member only: (i) with the consent of all members, or (ii) after being identified as a member in a written statement certified by each of the managers identified in the initial articles of organization. A.R.S. 29-731. Section 29-681 states the affirmative vote, approval or consent of all members is required to issue an interest in the limited liability company to any person unless otherwise provided in an Operating Agreement. The Operating Agreement should contain explicit rules with respect to how and when prospective members can become actual members. Operational Significance: An Operating A
