Full question:
A member of an LLC wants to use the rental RV for personal use. Would this disolve the LLC? Or should he actually 'rent' it from the LLC? Would a personal umbrella cover liability over an LLC?
- Category: LLC
- Date:
- State: California
Answer:
The answer will depend on the terms of the operating agreement. A limited liability company is dissolved and its affairs are to be wound up upon the happening of the first to occur of the following:
(a) At the time specified in the articles of organization, if any,
or upon the happening of the events, if any, specified in the
articles of organization or a written operating agreement.
(b) By the vote of a majority in interest of the members, or a
greater percentage of the voting interests of members as may be
specified in the articles of organization or a written operating
agreement.
(c) Entry of a decree of judicial dissolution.
Whether the RV would be covered under an umbrella policy will be a matter of contract law and depend on the terms in the policy and any exclusions it contains. I suggest you read the policy carefully to determine your coverage and exclusions, or call your insurance agent for further explanation.
For further discussion, please see:
http://vlex.com/vid/madison-guardian-stacy-murdock-37472642
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
