Actions by LLC Members

Title 2.6, Article 9 of the Corporations Code deals with actions by members under the California Revised Uniform Limited Liability Company Act.

Section 17709.01 authorizes any member of a foreign or domestic limited liability company to bring a class action on behalf of all or a class of members to enforce any claim common to those members and any of those actions are to be governed by the law governing class actions generally, provided that in order to maintain the class action there is no requirement that the class be so numerous that joinder of all members of the class is impracticable.

Section 17709.02 prohibits any actions from being instituted or maintained in right of any domestic or foreign limited liability company by any member of the limited liability company unless both of the specified conditions exist. The limited liability company or the defendant may move the court for an order, upon notice and hearing, requiring the plaintiff to furnish security as hereinafter provided. The motion must be based upon one or both of the specified grounds.