"Mandatory"LLC Owner/Member Expulsion Rule

For South Carolina LLCs regardless of how the LLC Operating Agreement is drafted, there is a “mandatory” controlling rule in the LLC Act on when and how LLC owner/members may be expelled from their LLCs by co-LLC owner/members (see “Mandatory” Statutory Rules of the South Carolina LLC Act).

Expulsion being a drastic remedy, my Multi-Member LLC Operating Agreements all now state the expulsion rule verbatim. I want to try to protect LLC owner/members from future LLC surprises. When I used “Form” LLC organization, the “form” LLC Operating Agreement gave the statute’s South Carolina citation but did not state the rule itself.

Because I doubt LLC owner/members will check for future amendments to the LLC Act (except perhaps if alerted to an amendment by e-mails from my law firm, see Law Firm E-Mail Updates), my LLC Operating Agreements warn that the version of the LLC Act current at the time expulsion becomes an issue must be reviewed to insure it has not been amended.