The Delaware Court of Chancery, in Lorenzo Roccia, et al. v. Martin Mugica, et al. and Skyline Renewables, LLC, C.A. No. 2020-0641-MTZ, order (Del. Ch. Dec. 29, 2020), found that the CEO of an LLC, granted “general powers of management” typical of a chief executive, and control of the company’s “business and operations,” lacked authority to remove a board member of an entity the LLC partially owned.
Francis Pileggi discusses the decision in Delaware Chancery Court rules CEO director removal authority is not ‘usual and ordinary’ core business.