Peter, Preston, and Penny Organize an LLC in the Month

question 62

Multiple Choice

Peter, Preston, and Penny organize an LLC in the month of January. While composing the operating agreement, they forget to include the amendment clause. Six months later, the situation demands an amendment to the operating agreement. Which of the following would best apply in this scenario?

• A) The operating agreement can be amended if all three members approve.
• B) The operating agreement cannot be amended as it contains no amendment provision.
• C) The operating agreement can be amended with the affirmative majority of all shareholders.
• D) The operating agreement can be amended only 60 days after a new amendment provision is included.

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Definitions:

Domestic Support

Financial or material assistance provided within a household, often involving alimony or child support following a divorce.

Motor Vehicles

Vehicles including cars, motorcycles, trucks, buses, and others, powered by engines for transportation on public roads.

Means Test

A process to determine an individual's eligibility for certain financial assistance programs based on income and assets.

Bankruptcy Process

A legal proceeding involving a person or business that is unable to repay their outstanding debts, which allows for the liquidation or reorganization of assets.