Question

Under the Uniform Limited Liability Company Act (ULLCA), managers in a manager-managed LLC owe fiduciary duties, such as the duty of loyalty and the duty of care, to the LLC and its members just as corporate directors and officers owe fiduciary duties to the corporation and its shareholders.( True/False)

Answer 1

The answer is: TRUE

Step-by-step explanation:

Fiduciary duty refers to the obligation an individual has to act in the best interest of another party (individual or corporation).

Both corporate directors and officers, and LLC managers, have fiduciary duty towards their organizations that include: duty of loyalty, duty of good care and duty of good faith.