Sec. 401. Unless the articles of organization state that the business of the limited liability company is to be managed by 1 or more managers, the business of the limited liability company shall be managed by the members, subject to any provision in an operating agreement restricting or enlarging the management rights and duties of any member or group of members. If management is vested in the members, both of the following apply: (a) The members are considered managers for purposes of applying this act, including section 406 regarding the agency authority of managers, unless the context clearly requires otherwise. (b) The members have, and are subject to, all duties and liabilities of managers and to all limitations on liability and indemnification rights of managers.
Mich. Comp. Laws § 450.4401
Management vested in members
Applied in 2 court decisions — leading case Altobelli v. Hartmann (2016)
Most recently applied in 2024 IL App (1st) 231062 - Stockbridge 600 West Jackson, LLC. v. Industrious National Management Company, LLC. (September 2024)
1993, Act 23, Eff
Official source: Michigan Legislature. Reproduced from public-domain Michigan statutes; confirm against the official source for the current text. Not legal advice.