Deciphering Members' Rights to Information in LLCs: A Nevada State Law Perspective
According to Nevada state law, in reference to LLCs, what rights to information do members have?
Under Nevada state law, members of a Limited Liability Company (LLC) have certain rights to company information. These rights are outlined in Chapter 86 of the Nevada Revised Statutes (NRS), specifically NRS 86.291.
Right to Access Records: As per NRS 86.291, each member has the right to access and inspect all books and records of the LLC during reasonable hours. This includes, but is not limited to, company's articles of organization, bylaws, member agreements, financial statements, list of members and their capital contributions, and tax returns for the preceding three years.
Right to Accounting: Under NRS 86.343, when a member or manager resigns, he or she has the right to demand and receive, within a reasonable time, true information of the amount of the capital that has been actually paid in, the financial condition of the company and the amount of its property and assets.
Annual Report: NRS 86.263 states that the secretary of every LLC is required by law to file an annual report with the Secretary of State. Members should be able to access this report.
Please remember that LLCs can modify members' rights to some degree in the operating agreement and other documents. Members should review these documents for any specific conditions or limits on their rights.
If an LLC unjustifiably restricts a member's access to records or other information, the member could potentially take the matter to court to compel access.
This is a general guide and may not cover every scenario or possibility. For a legal assessment pertinent to a specific situation, seek advice from a lawyer who is familiar with Nevada LLC law.