Problem:
Lynda is a member of a manager-managed LLC but is not a manager. However, Lynda has considerable expertise in the business of the LLC. Lynda assisted the managers for the first couple of years of the LLC's existence without any difficulties. During the third year, Lynda began to challenge some of the decisions made by the managers who had begun to shut Lynda out of most decisions. Lynda demands that as a member of the LLC she be allowed to participate in its management and that she be compensated for the services she is providing. In this case:
1. Lynda will be allowed to participate, but is not entitled to any compensation.
2. Lynda cannot demand a continuous management role, but is entitled to compensation for the services already delivered.
3. Lynda is not entitled to participate in management, nor is she entitled to compensation.
4. Lynda will be allowed to participate in management and is entitled to compensation.