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An LLC operates as manager-managed when the members choose to appoint one or more managers to handle day-to-day operations. In this structure, members do not participate in management decisions but retain ownership stakes. This arrangement allows for a clearer division of responsibilities, particularly in larger LLCs. When it's time to change the management structure, a Kansas Resolution of Meeting of LLC Members to Remove the Manager of the Company and Appoint a New Manager may be needed.
A resolution to appoint a manager of an LLC formally designates an individual to oversee the company's operations. This process involves a meeting of the LLC members, where they discuss and vote on the appointment. The Kansas Resolution of Meeting of LLC Members to Remove the Manager of the Company and Appoint a New Manager ensures that all members agree on leadership roles to maintain clarity in management.
The only way a member of an LLC may be removed is by submitting a written notice of withdrawal unless the articles of organization or the operating agreement for the LLC in question details a procedure for members to vote out others.
There could be one manager or multiple, and the manager could be a member (but need not be). If the manager isn't a member, they are called a professional manager. The managers act as a board of directors would for a corporation. Manager management is appropriate when an LLC has investors.
Only a manager-managed LLC can have a board, so you would have to consider this at formation. A board of directors is a handy way to align members with appropriate duties and enforce communication.
The members appoint one or more managerswho may or may not also be membersto manage the LLC. Only the managers may bind the LLC to contracts and participate in the day-to-day operation of the business.
Members can appoint managers at any time. Whether it's manager or member managed, the selection can be changed by amending the articles of organization. Changes to articles usually need a vote to change them, and state law can require unanimous decision.
A manager will be elected by a majority of LLC members and can also be removed, or fired, through the same majority of members. This firing can occur without notice or cause.
Members can change the management structure of its LLC according to the rules in the operating agreement. To complete the process, the members of an LLC must vote and approve the changes. After the voting process, an amendment to the articles of organization is filed with the secretary of state's office.
A managing member position within an LLC will usually have the authority to: Make business decisions regarding daily company operations, like firing or hiring employees or independent contractors. Enter into binding agreements on behalf of the LLC, such as contractor agreements or property sales. Make legal decisions.