I not too long ago got here throughout Decide William Alsup’s ruling in Carbon Crest, LLC v. Tencue Productions, LLC, 2022 U.S. Dist. LEXIS 66676. Nevertheless, the primary two sentences of the ruling left me baffled:
In any respect materials instances, defendant Tencue Productions was a California restricted legal responsibility firm that offered occasion manufacturing companies to different firms. Defendant Jeffrey D. Wilk, a fifty-percent shareholder and board member of Tencue, sought to promote Tencue.
The outline of Tencue as a restricted legal responsibility firm appears at odds with the characterization of Mr. Wilk as a shareholder and board member. Whereas the legislation doesn’t preclude an LLC from referring to its members as “shareholders”, Decide Alsup proceeds to use Firms Code Part 310 to the dispute. That statute, after all, applies solely to companies. I checked the information of the California Secretary of State and located that there had as soon as been a California company named “Tencue Productions, Inc.” Nevertheless, that company had transformed right into a restricted legal responsibility firm named Tencue Productions, LLC in 2019. It seems that the occasions giving rise to the events’ dispute arose earlier than Tencue’s conversion.