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Explain Limited Liability Company
Edina and Patsy form an LLC for the purpose of starting a public relations firm. Edina drafted the articles of organization for the LLC and gave the articles to Patsy, who read them briefly. Patsy told Edina, "Everything looks okay to me," and signed the agreement. Edina properly filed the LLC articles with the secretary of state and the LLC was formed. Edina operated the LLC as if she were the primary manager, excluding Patsy from most of the day-to-day investment and management decisions of the LLC. Patsy protested wanting more control of the business. Edina produced the articles of organization, which clearly stated that the LLC was manager-managed, with Edina listed as the sole manager. Patsy argued that as a member of the LLC, she had the inherent right to manage the LLC.
Is Patsy correct? Why?
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