(1) Except as provided in subsection (2) of this section, every member shall be an agent
of the limited liability company for the purpose of its business or affairs, and the act
of any member, including but not limited to the execution in the name of the limited
liability company of any instrument, for apparently carrying on in the usual way the
business or affairs of the limited liability company of which he is a member, shall
bind the limited liability company, unless the member so acting has, in fact, no
authority to act for the limited liability company in the particular matter, and the
person with whom the member is dealing has knowledge or has received
notification of the fact that the member has no such authority.
(2) If the articles of organization provide that management of the limited liability
company is vested in a manager or managers:
(a) No member, solely by reason of being a member, shall be an agent of the
limited liability company; and
(b) Every manager shall be an agent of the limited liability company for the
purpose of its business or affairs, and the act of any manager, including, but
not limited to, the execution in the name of the limited liability company of
any instrument, for apparently carrying on in the usual way the business or
affairs of the limited liability company of which he is the manager shall bind
the limited liability company, unless the manager so acting has, in fact, no
authority to act for the limited liability company in the particular matter, and
the person with whom the manager is dealing has knowledge or has received
notification of the fact that the manager has no such authority.
(3) An act of a manager or a member which is apparently not for the carrying on in the
usual way of the business or affairs of the limited liability company shall not bind
the limited liability company unless, at the time of the transaction or at any other
time, the act is authorized in accordance with the operating agreement.
(4) An act of a manager or member in contravention of a restriction on authority shall
not bind the limited liability company to persons having knowledge of the
restriction.
Effective: July 15, 2010
History: Repealed and reenacted 2010 Ky. Acts ch. 51, sec. 107, effective July 15,
2010. -- Amended 2007 Ky. Acts ch. 137, sec. 107, effective June 26, 2007. --
Amended 1998 Ky. Acts ch. 341, sec. 25, effective July 15, 1998. -- Created 1994
Ky. Acts ch. 389, sec. 27, effective July 15, 1994.
Legislative Research Commission Note (7/15/2010). 2010 Ky. Acts ch. 51, sec. 183,
provides, "The specific textual provisions of Sections 1 to 178 of this Act which
reflect amendments made to those sections by 2007 Ky. Acts ch. 137 shall be deemed
effective as of June 26, 2007, and those provisions are hereby made expressly
retroactive to that date, with the remainder of the text of those sections being
unaffected by the provisions of this section."
Notes of Decisions
Patmon v. Hobbs, 280 S.W.3d 589 (Ky. Ct. App. 2009).
· cites it 4× “KRS 275.135(1). But where the articles vest authority in a manager or managers, every manager is an agent of the limited liability company for the purpose of its business or affairs.”
Pannell v. Shannon, 425 S.W.3d 58 (Ky. 2014).
· cites it 2× “Under Kentucky law, LLC members are agents of the LLC by default, see KRS 275.135(1), but they do not have to be.”
Griffin v. Jones, 975 F. Supp. 2d 711 (W.D. Ky. 2013).
“at 594 (citing KRS 275.135(2)(b)). Consequently, CJM was bound to act not only in the interests of the companies, but also owed them a basic duty of faithfulness and loyalty.”
Kenneth L. Ramsey v. Dapple Stud, LLC (Ky. 2024).
· cites it 3× “As to an LLC manager’s authority, KRS 275.135(2) is clear: (2) If the articles of organization provide that management of the limited liability company is vested in a manager or managers: (a) No member, solely by reason of being a member, shall be an agent of the limited…”
Curare Lab'y LLC (Bankr. W.D. Ky. 2022).
“ncluding, but not limited to, the execution in the name of the limited liability company of any instrument, for apparently carrying on in the usual way the business or affairs of the limited liability company of which he is the manager shall bind the limited liability company,…”
Auslander Props., LLC v. Joseph Herman Nalley (Ky. 2018).
“Hargis rests largely upon the rationale expressed by the Sixth Circuit Court of Appeals in 7 See KRS 275.135(1). We also note that a member of an LLC may elect whether to be classified as an employee for workers’ compensation purposes but need not do so.”
— Ky. Rev. Stat. § 275.135(1) — 3 cases
Patmon v. Hobbs, 280 S.W.3d 589 (Ky. Ct. App. 2009).
“KRS 275.135(1). But where the articles vest authority in a manager or managers, every manager is an agent of the limited liability company for the purpose of its business or affairs.”
Pannell v. Shannon, 425 S.W.3d 58 (Ky. 2014).
“Under Kentucky law, LLC members are agents of the LLC by default, see KRS 275.135(1), but they do not have to be.”
Auslander Props., LLC v. Joseph Herman Nalley (Ky. 2018).
“Hargis rests largely upon the rationale expressed by the Sixth Circuit Court of Appeals in 7 See KRS 275.135(1). We also note that a member of an LLC may elect whether to be classified as an employee for workers’ compensation purposes but need not do so.”
— Ky. Rev. Stat. § 275.135(2) — 1 case
Kenneth L. Ramsey v. Dapple Stud, LLC (Ky. 2024).
“As to an LLC manager’s authority, KRS 275.135(2) is clear: (2) If the articles of organization provide that management of the limited liability company is vested in a manager or managers: (a) No member, solely by reason of being a member, shall be an agent of the limited…”
— Ky. Rev. Stat. § 275.135(2)(a) — 1 case
Pannell v. Shannon, 425 S.W.3d 58 (Ky. 2014).
“Under Kentucky law, LLC members are agents of the LLC by default, see KRS 275.135(1), but they do not have to be.”
— Ky. Rev. Stat. § 275.135(2)(b) — 4 cases
Patmon v. Hobbs, 280 S.W.3d 589 (Ky. Ct. App. 2009).
“KRS 275.135(1). But where the articles vest authority in a manager or managers, every manager is an agent of the limited liability company for the purpose of its business or affairs.”
Griffin v. Jones, 975 F. Supp. 2d 711 (W.D. Ky. 2013).
“at 594 (citing KRS 275.135(2)(b)). Consequently, CJM was bound to act not only in the interests of the companies, but also owed them a basic duty of faithfulness and loyalty.”
Curare Lab'y LLC (Bankr. W.D. Ky. 2022).
“ncluding, but not limited to, the execution in the name of the limited liability company of any instrument, for apparently carrying on in the usual way the business or affairs of the limited liability company of which he is the manager shall bind the limited liability company,…”
Kenneth L. Ramsey v. Dapple Stud, LLC (Ky. 2024).
“As to an LLC manager’s authority, KRS 275.135(2) is clear: (2) If the articles of organization provide that management of the limited liability company is vested in a manager or managers: (a) No member, solely by reason of being a member, shall be an agent of the limited…”
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