House Amendment 2A
H 4552 - Session 125 (2023-2024)
Tax Increment Financing
View Vote History

Rep. Herbkersman proposes the following amendment (LC-4552.HDB0005H):

Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:

SECTION X. Article 1, Chapter 3, Title 31 of the S.C. Code is amended by adding:

 Section 31-3-60. A member of an affordable housing limited liability company must refrain from competing with the company in the conduct of the company's business before the dissolution of the company. This section does not apply when the member becomes a member of another limited liability company and that company does not have an enforceable noncompete provision in their operating agreement.

SECTION X. Section 33-44-409(b) of the S.C. Code is amended to read:

 (b) A member's duty of loyalty to a member-managed company and its other members is limited to the following:
  (1) to account to the company and to hold as trustee for it any property, profit, or benefit derived by the member in the conduct or winding up of the company's business or derived from a use by the member of the company's property, including the appropriation of a company's opportunity;
  (2) to refrain from dealing with the company in the conduct or winding up of the company's business as or on behalf of a party having an interest adverse to the company; and
  (3) to refrain from competing with the company in the conduct of the company's business before the dissolution of the company. This item does not apply when the member becomes a member of another limited liability company and that company does not have an enforceable noncompete provision in their operating agreement.