Creditors of Insolvent Delaware LLCs Cannot File Derivative Claims | Practical Law

Creditors of Insolvent Delaware LLCs Cannot File Derivative Claims | Practical Law

An update on the Delaware Chancery Court's opinion in CML V, LLC v. Bax, in which the court held that creditors of an insolvent LLC do not have standing to bring derivative claims under the Delaware LLC Act.

Creditors of Insolvent Delaware LLCs Cannot File Derivative Claims

Practical Law Legal Update 3-503-8671 (Approx. 3 pages)

Creditors of Insolvent Delaware LLCs Cannot File Derivative Claims

by PLC Finance
Published on 09 Nov 2010 • Delaware
An update on the Delaware Chancery Court's opinion in CML V, LLC v. Bax, in which the court held that creditors of an insolvent LLC do not have standing to bring derivative claims under the Delaware LLC Act.