Amends South Carolina law to exempt members of a member-managed company from a duty of loyalty under certain conditions.

This bill amends South Carolina law to modify the duty of loyalty for members of a member-managed company. Specifically, it exempts members from refraining from competing with the company if the company's operating agreement lacks an enforceable noncompete provision and if the member is also a member of another limited liability company. The changes apply retroactively to any limited liability company existing on or after the bill's effective date.

Amends South Carolina law to exempt members of a member-managed company from a duty of loyalty under certain conditions.

This bill amends South Carolina law to modify the duty of loyalty for members of a member-managed company. Specifically, it exempts members from refraining from competing with the company if the company's operating agreement lacks an enforceable noncompete provision and if the member is also a member of another limited liability company. The changes apply retroactively to any limited liability company existing on or after the bill's effective date.