Minnesota’s new limited liability company (LLC) law took effect on August 1, 2015 (the New Act). Already, the Minnesota legislature has proposed a number of revisions to the New Act. These revisions, set to be adopted by the summer of 2016, will have a retroactive effective date of August 1, 2015. The revisions include, among others, changes that will allow a board-managed LLC to grant a security interest in all or substantially all of its property or assets without obtaining the consent of its members, regardless of whether such grant is done in the ordinary course of the LLC’s business. This revision more closely aligns the New Act with Minnesota’s former LLC law (and Minnesota’s corporation law) with respect to the granting of a security interest in the LLC’s property or assets. As of this writing, the legislature had not yet considered these revisions, but we expect action soon.
Update: The revisions were enacted into law on May 18, 2016.