Florida Senate - 2015                        COMMITTEE AMENDMENT
       Bill No. CS for CS for SB 554
       
       
       
       
       
       
                                Ì664452(Î664452                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/02/2015           .                                
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       The Committee on Rules (Simmons) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 92 - 114
    4  and insert:
    5         Section 2. Paragraphs (i) and (q) of subsection (3) and
    6  paragraph (c) of subsection (4) of section 605.0105, Florida
    7  Statutes, are amended to read:
    8         605.0105 Operating agreement; scope, function, and
    9  limitations.—
   10         (3) An operating agreement may not do any of the following:
   11         (i) Vary the power of a person to dissociate under s.
   12  605.0601, except to require that the notice under s. 605.0602(1)
   13  be in a record.
   14         (p)(q) Provide for indemnification for a member or manager
   15  under s. 605.0408 for any of the following:
   16         1. Conduct involving bad faith, willful or intentional
   17  misconduct, or a knowing violation of law.
   18         2. A transaction from which the member or manager derived
   19  an improper personal benefit.
   20         3. A circumstance under which the liability provisions of
   21  s. 605.0406 are applicable.
   22         4. A breach of duties or obligations under s. 605.04091,
   23  taking into account a restriction, an expansion, or an
   24  elimination variation of such duties and obligations provided
   25  for in the operating agreement to the extent allowed by
   26  subsection (4).
   27         (4) Subject to paragraph (3)(g), without limiting other
   28  terms that may be included in an operating agreement, the
   29  following rules apply:
   30         (c) If not manifestly unreasonable, the operating agreement
   31  may:
   32         1. Alter or eliminate the aspects of the duty of loyalty
   33  under s. 605.04091(2);
   34         2. Identify specific types or categories of activities that
   35  do not violate the duty of loyalty; and
   36         3. Alter the duty of care, but may not authorize willful or
   37  intentional misconduct or a knowing violation of law; and
   38         4. Alter or eliminate any other fiduciary duty.
   39         Section 3. Section 605.0111, Florida Statutes, is amended
   40  to read:
   41         605.0111 Rules of construction and supplemental principles
   42  of law.—
   43         (1) It is the intent of this chapter to give the maximum
   44  effect to the principle of freedom of contract and to the
   45  enforceability of operating agreements, including the purposes
   46  of ss. 605.0105-605.0107.
   47         (2) To the extent that, at law or in equity, a member, a
   48  manager, or another person has duties, including fiduciary
   49  duties, to a limited liability company or to another member or
   50  manager or to another person that is a party to or is otherwise
   51  bound by an operating agreement, the duties of the member,
   52  manager, or other person may be restricted, expanded, or
   53  eliminated, including in the determination of applicable duties
   54  and obligations under this chapter, by the operating agreement,
   55  and to the extent allowed by s. 605.0105.
   56         (3) Unless displaced by particular provisions of this
   57  chapter, the principles of law and equity, including the common
   58  law principles relating to the fiduciary duties of loyalty and
   59  care, supplement this chapter.
   60         Section 4. Subsection (4) of section 605.04073, Florida
   61  Statutes, is amended to read:
   62         605.04073 Voting rights of members and managers.—
   63         (4) An action requiring the vote or consent of members
   64  under this chapter may be taken without a meeting if the action
   65  is approved in a record by members with at least the minimum
   66  number of votes that would be necessary to authorize or take the
   67  action at a meeting of the members., and A member may appoint a
   68  proxy or other agent to vote or consent for the member by
   69  signing an appointing record, personally or by the member’s
   70  agent. On an action taken by fewer than all of the members
   71  without a meeting, notice of the action must be given to those
   72  members who did not consent in writing to the action or who were
   73  not entitled to vote on the action within 10 days after the
   74  action was taken.
   75         Section 5. Subsections (2) and (3) of section 605.04091,
   76  Florida Statutes, are amended to read:
   77         605.04091 Standards of conduct for members and managers.—
   78         (2) The duty of loyalty includes is limited to:
   79         (a) Accounting to the limited liability company and holding
   80  as trustee for it any property, profit, or benefit derived by
   81  the manager or member, as applicable:
   82         1. In the conduct or winding up of the company’s activities
   83  and affairs;
   84         2. From the use by the member or manager of the company’s
   85  property; or
   86         3. From the appropriation of a company opportunity;
   87         (b) Refraining from dealing with the company in the conduct
   88  or winding up of the company’s activities and affairs as, or on
   89  behalf of, a person having an interest adverse to the company,
   90  except to the extent that a transaction satisfies the
   91  requirements of this section; and
   92         (c) Refraining from competing with the company in the
   93  conduct of the company’s activities and affairs before the
   94  dissolution of the company.
   95         (3) The duty of care in the conduct or winding up of the
   96  company’s activities and affairs is limited to refrain
   97  refraining from engaging in grossly negligent or reckless
   98  conduct, willful or intentional misconduct, or a knowing
   99  violation of law.
  100  
  101  ================= T I T L E  A M E N D M E N T ================
  102  And the title is amended as follows:
  103         Delete lines 13 - 16
  104  and insert:
  105         dissociate; clarifying that an operating agreement is
  106         prohibited from providing indemnification for a member
  107         or manager in certain circumstances; authorizing an
  108         operating agreement to alter or eliminate any other
  109         fiduciary duty; amending s. 605.0111, F.S.; providing
  110         that the duties of the member, manager, or another
  111         person may be restricted, expanded, or eliminated in
  112         certain circumstances; amending s. 605.04073, F.S.;
  113         requiring certain conditions for members of a limited
  114         liability company, without a meeting, to take certain
  115         actions requiring the vote or consent of the members;
  116         amending s. 605.04091, F.S.; providing that the duty
  117         of loyalty includes, but is not limited to, specified
  118         actions; revising the duty of care in the conduct or
  119         winding up of the company’s activities and affairs;
  120         amending