Posted by John Merchant on May 04, 2004 at 09:30:57:
.
Can CA order foreclosure of an AK LLC interest? - Posted by Bob
Posted by Bob on May 03, 2004 at 06:43:51:
Note that, under AK law, foreclosure is not a permitted remedy, and AK judges (by my lay reading of the statute) may not be able to honor foreign FC judgments. Would an AK LLC, qualified to do business in CA, be subject to FC of its interests (since there is precedent in CA for such)? Or is personal jurisdiction over the member sufficient to ignore the AK statute?
Alaska Statutes.
Title 10. Corporations and Associations
Chapter 50. Alaska Revised Limited Liability Company Act
Section 380. Rights of Judgment Creditors.
AS 10.50.380. Rights of Judgment Creditors.
(c) This section provides the exclusive remedy that a judgment creditor of a member or a member’s assignee may use to satisfy a judgment out of the judgment debtor’s interest in the limited liability company. Other remedies, including foreclosure on the member’s limited liability company interest and a court order for directions, accounts, and inquiries that the debtor member might have made, are not available to the judgment creditor attempting to satisfy a judgment out of the judgment debtor’s interest in the limited liability company and may not be ordered by a court.
Yes! - Posted by William Bronchick
Posted by William Bronchick on May 03, 2004 at 21:22:17:
The chouce of law for reditor’s remedy is the state in which the suit is brought, not the state of formation. When the issue involves internal legal battles, then the state of formation’s law will generally apply. For example, in a shareholder’s derivative action, the law of the formation state is applied, which is why so many corporations are formed under DE law.
Re: Yes! - Posted by Bob
Posted by Bob on May 09, 2004 at 20:13:50:
Which choice of law applies to stripping limited partners of limited liability, state of suit or state of formation? For example, Texas law (as I understand it) explicitly permits limited partners to act as officers of the corporate general partner without losing limited liability, as long as they don’t claim to personally be a general partner. Would that apply to a foreign-qualified Texas partnership?