WHAT IS THE DIFFERENCE BETWEEN MANAGEMENT BY MEMBERS OR BY MANAGERS?
The Articles of Organization must indicate whether the limited liability company will be managed by its members, or by managers. If management is to be by members, this means that ALL the members will participate in managing the business and affairs of the company. Otherwise, managers will be elected to manage the business and affairs of the company. Managers may also be members but need not be. EXAMPLE: If there are 4 members in a limited liability company, but only two of them will manage the business and affairs of the company, then those two members will be appointed as managers, and the Articles of Organization should indicate that the company will be managed by more than one manager. If all 4 members were going to participate in managing the business and affairs of the company, then the Articles of Organization would indicate that the limited liability company will be managed by all its members.
