Benjamin v. Island Management, LLCAnnotate this Case
In this appeal concerning the conditions under which a member of a manager-managed limited liability company (LLC) is permitted to inspect the LLC's books and records the Supreme Court affirmed the judgment of the trial court concluding that Defendant's refusal to disclose certain information to Plaintiffs violated both Conn. Gen. Stat. 34-255i and Defendant's operating agreement, holding that there was no error.
At issue was whether a member seeking information for the purpose of ascertaining whether mismanagement occurred must produce credible proof that mismanagement may have occurred as a condition for exercising that member's statutory inspection right. The Supreme Court affirmed the trial court's ruling in favor of the substitute plaintiffs in this case, holding that the court did not err in (1) concluding that there is no credible proof of mismanagement requirement in section 34-255i; and (2) failing to apply other statutory requirements.