The bill H. 4659 proposes an amendment to Section 33-44-409 of the South Carolina Code of Laws, which pertains to the general standards of conduct for members and managers of member-managed companies. The amendment introduces an exemption to the duty of loyalty that members owe to their company and fellow members under specific conditions. Notably, it allows members to compete with the company if the company's operating agreement lacks an enforceable noncompete provision and if the member is also part of another limited liability company.

This legislation aims to provide greater flexibility for members of limited liability companies by clarifying the circumstances under which they can engage in competitive activities without violating their duty of loyalty. The bill will take effect upon the Governor's approval and will be retroactively applicable to any limited liability company existing on or after the effective date.

Statutes affected:
12/17/2025: 33-44-409
Latest Version: 33-44-409