Legal Question in Business Law in Massachusetts
Can a manager of a business divert assets to another business?
is Diversion of assets self dealing ?
Asked on 9/27/15, 4:55 am
1 Answer from Attorneys
A manager of a LLC owes a fiduciary duty to the LLC and its members. Unless permitted under the operating agreement or the consent of the Members, the Manager cannot self-deal or divert assets from one LLC to another.
Without more information, it is impossible to give a more definitive answer. It is however not uncommon for one LLC to act as Manager of another.
Answered on 9/27/15, 10:25 am
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