§ 7-16-20. Agency power of managers.
(a) Every manager is an agent of the limited liability company for the purpose of its
business and affairs, and the act of every manager, including the execution in the
limited liability company's name of any instrument for apparently carrying on in the
usual way the business and affairs of the limited liability company that the manager
manages, binds the limited liability company unless:
(1) The act is in contravention of the articles of organization or this chapter, or
(2) The manager acting otherwise lacks the authority to act for
Free access — add to your briefcase to read the full text and ask questions with AI
§ 7-16-20. Agency power of managers.
(a) Every manager is an agent of the limited liability company for the purpose of its
business and affairs, and the act of every manager, including the execution in the
limited liability company's name of any instrument for apparently carrying on in the
usual way the business and affairs of the limited liability company that the manager
manages, binds the limited liability company unless:
(1) The act is in contravention of the articles of organization or this chapter, or
(2) The manager acting otherwise lacks the authority to act for the limited liability
company and the person with whom the manager is dealing has knowledge of the fact
that the manager has no authority.
(b) Unless otherwise provided in the articles of organization, members of a limited liability
company whose business and affairs is managed by or under the authority of one (1)
or more managers pursuant to § 7-16-15 are not agents of the limited liability company and have no authority to bind the
limited liability company unless they are also managers.