A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 33-44-409, RELATING TO GENERAL STANDARDS OF MEMBERS' AND MANAGERS' CONDUCT, SO AS TO PROVIDE AN EXEMPTION FOR A MEMBER'S DUTY OF LOYALTY TO A MEMBER-MANAGED COMPANY AND ITS MEMBERS UNDER CERTAIN CONDITIONS.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 33-44-409(b)(3) of the S.C. Code is amended to read:

 

    (3) to refrain from competing with the company in the conduct of the company's business before the dissolution of the company. However, this item does not apply when: (a) the company's operating agreement does not contain an enforceable noncompete provision; and (b) the member is also a member of another limited liability company.

 

SECTION 2.  This act takes effect upon approval by the Governor. The provisions of this act are retroactive and apply to any limited liability company that exists on or after the effective date.

 

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