Flexibility and Default Rules
The phrase "unless otherwise provided for in the operating agreement" (or its equivalent) is found throughout all existing LLC statutes and is responsible for the flexibility the members of the LLC have in deciding how their LLC will be governed (provided it does not go outside legal bounds). State statutes typically provide automatic or "default" rules for how an LLC will be governed unless the operating agreement provides otherwise.
Similarly, the phrase “unless otherwise provided for in the by laws” is also found in all corporation law statutes but often refers only to a narrower range of matters.
Read more about this topic: Limited Liability Company
Famous quotes containing the words default and/or rules:
“In default of inexhaustible happiness, eternal suffering would at least give us a destiny. But we do not even have that consolation, and our worst agonies come to an end one day.”
—Albert Camus (1913–1960)
“... a large portion of success is derived from flexibility. It is all very well to have principles, rules of behavior concerning right and wrong. But it is quite as essential to know when to forget as when to use them.”
—Alice Foote MacDougall (1867–1945)