4700AA750071476F872584CB00648560 Hearing Summary

Steve Mulligan, Legislative Liaison for the CBA Business Law Section, speaking for himself only. At the commission's request, the section did take a look at this act. In 1990, Colorado was the third state to pass a limited liability company act. The "Colorado Limited Liability Company Act" is located in article 80 of title 7, C.R.S. Colorado lawyers helped to draft the 1996 Uniform Limited Liability Company Act with language borrowed from Colorado's 1990 limited liability company act and to date, 22 states have adopted the uniform act. Colorado's act has been revised over the years, sometimes borrowing language from subsequent uniform acts. In addition, Colorado courts have generated considerable case law regarding this area of law and practitioners believe that Colorado's law and case law work well. Unfortunately, the uniform act does not reconcile well with Colorado law and there may be issues with trying to do so. There may be provisions in the revised act that may be beneficial for Colorado to incorporate and there is interest in forming a group to discuss possible amendments to Colorado law, but not necessarily to make Colorado law more uniform. The CBA does not support moving forward with the revised act at this time. The commission asked whether Colorado is at a disadvantage for not having a uniform act regarding business law. Mr. Mulligan responded that the way Colorado law is written and has developed has actually become an enticement for entities to come into Colorado to do business. Commission consensus was to take this act off the commission's agenda until there is interest in moving forward on it in the future.