H4659

Duty of Loyalty

Introduced·1/13/26
Introduced Text

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.

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Where it stands

Current
Judiciary Committee
Next
Committee decision

Sponsors

0
1
R
Democratic CaucusRepublican Caucus

Calendar

Mar 31

9:30 AM

House Judiciary Domestic Relations, Business & Probate Laws Subcommittee on 3408, 4659, 4747, 4754

History

Jan 13

House

Introduced and read first time

Jan 13

House

Referred to Committee on Judiciary

Dec 16, 2025

House

Prefiled