South Dakota is updating its limited liability company law to clarify that members and managers are not personally responsible for the company's debts or liabilities simply because they own or run it, even if the company fails to follow standard business procedures. The law also allows companies to require certain members to accept personal liability for company debts, but only if those members explicitly agree to it in writing and the requirement is included in the company's articles of organization.
This bill does not directly amend codified state law.
Signed by the Governor H.J. 480
Delivered to the Governor H.J. 446
Signed by the President S.J. 389
Signed by the Speaker H.J. 433
Senate Do Pass Passed, YEAS 35, NAYS 0. S.J. 356
Senate Do Pass Passed, YEAS 35, NAYS 0. S.J. 356
Commerce and Energy Certified uncontested, placed on consent
Commerce and Energy Do Pass Passed, YEAS 7, NAYS 0.
Commerce and Energy Scheduled for hearing
First read in Senate and referred to Senate Commerce and Energy S.J. 255
House of Representatives Do Pass Passed, YEAS 64, NAYS 1. H.J. 304
House of Representatives Deferred to another day H.J. 283
Judiciary Do Pass Passed, YEAS 9, NAYS 0.
Judiciary Scheduled for hearing
First read in House and referred to House Judiciary H.J. 75
Arthur Rusch
Prime sponsor · Sen.
R
Timothy Johns
Prime sponsor · Rep.
R
Cosponsors
Do Pass
Commerce and Energy — Do Pass
Do Pass
Judiciary — Do Pass