Saturday, October 24, 2020
Professor Dan Kleinberger and I have recently published a short article in the Business Law Today entitled "The Limited Effect of 'Maximum Effect.'" The executive summary of the piece is that more than 20 jurisdictions have followed Delaware rather than the Uniform Law Commission in giving “maximum effect” to the principle of freedom of contract in LLC arrangements. You may wonder, "Exactly how effective has the construct of 'maximum effect' been?" Our answer is "not very."
If you're interested in reading beyond the executive summary, you can find the article here: https://businesslawtoday.org/2020/08/limited-effect-maximum-effect/