Colo. Rev. Stat. § 7-80-405

Current through Acts effective through 5/29/2024 of the 2024 Legislative Session
Section 7-80-405 - Members and managers as agents of the limited liability company
(1) If the articles of organization provide that management of the limited liability company is vested in one or more managers:
(a) A member is not an agent of the limited liability company and has no authority to bind the limited liability company solely by virtue of being a member; and
(b) Each manager is an agent of the limited liability company for the purposes of its business and an act of a manager, including the execution of an instrument in the name of the limited liability company, for apparently carrying on in the ordinary course the business of the limited liability company or business of the kind carried on by the limited liability company binds the limited liability company, unless the manager had no authority to act for the limited liability company in the particular matter and the person with whom the manager was dealing had notice that the manager lacked authority.
(2) If the articles of organization provide that management of the limited liability company is vested in the members, each member is an agent of the limited liability company for the purposes of its business and an act of a member, including the execution of an instrument in the name of the limited liability company, for apparently carrying on in the ordinary course the business of the limited liability company or business of the kind carried on by the limited liability company binds the limited liability company, unless the member had no authority to act for the limited liability company in the particular matter and the person with whom the member was dealing had notice that the member lacked authority.

C.R.S. § 7-80-405

L. 2004: Entire part R&RE, p. 940, § 6, effective July 1. L. 2006: Entire section amended, p. 858, § 25, effective July 1.