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Tenn. Code Ann. § 48-249-105

Ultra vires actions

Known as the Tennessee Revised Limited Liability Company Act

The act spans §§ 48-249-1001 to 48-249-914 (146 sections).

Acts 2005, ch. 286, § 1.

(1) Limit on power to challenge. Except as provided in subsection (b), the validity of an LLC's action may not be challenged on the ground that the LLC lacks or lacked the power to act.

(2) Challenge of power. An LLC's power to act may be challenged in a proceeding by: A member against the LLC to enjoin the act;

(3) The LLC, directly, derivatively or through a receiver, trustee or other personal representative, against an incumbent or former director, manager, employee, agent or member of the LLC, as applicable; or

(4) The attorney general and reporter under § 48-249-617.

(5) Derivative action. In a member's proceeding, under subdivision (b)(1), to enjoin an unauthorized LLC act, the court may enjoin or set aside the act, if equitable, and if all affected persons are parties to the proceeding, and may award damages for loss suffered by the LLC or another party because of enjoining the unauthorized act.

Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.