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H4659 • 2026

Duty of Loyalty

Duty of Loyalty

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Rep. Herbkersman
Last action
2026-01-13
Official status
Referred to Committee on Judiciary ( House Journal-page 48 )
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Duty of Loyalty

Duty of Loyalty

What This Bill Does

  • Duty of Loyalty

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-13 House

    Introduced and read first time ( House Journal-page 48 )

  2. 2026-01-13 House

    Referred to Committee on Judiciary ( House Journal-page 48 )

  3. 2025-12-16 House

    Prefiled

  4. 2025-12-16 House

    Referred to Committee on Judiciary

Official Summary Text

Duty of Loyalty

Current Bill Text

Read the full stored bill text 
2025-2026 Bill 4659: Duty of Loyalty - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
Download
This Bill
in Microsoft Word Format
Indicates Matter Stricken
Indicates New Matter
H. 4659
STATUS INFORMATION
General Bill
Sponsors: Rep. Herbkersman
Document Path: LC-0204HA26.docx
Introduced in the House on January 13, 2026
Currently residing in the House Committee on
Judiciary
Summary: Duty of Loyalty
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

12/16/2025

House

Prefiled

12/16/2025

House

Referred to Committee on
Judiciary

1/13/2026

House

Introduced and read first time (
House Journal-page 48
)

1/13/2026

House

Referred to Committee on
Judiciary
(
House Journal-page 48
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
12/17/2025

A bill

TO AMEND THE SOUTH
CAROLINA CODE OF LAWS BY AMENDING SECTION
33-44-409
, RELATING TO GENERAL
STANDARDS OF MEMBERS' AND MANAGERS' CONDUCT, SO AS TO PROVIDE AN EXEMPTION FOR
A MEMBER'S DUTY OF LOYALTY TO A MEMBER-MANAGED COMPANY AND ITS MEMBERS UNDER
CERTAIN CONDITIONS.

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
S
ection
33-44-409
(b)(3) of the S.C. Code is amended to
read:

(
3) to refrain from competing with the
company in the conduct of the company's business before the dissolution of the
company.
However, this item does not apply when: (a) the
company's operating agreement does not contain an enforceable noncompete
provision; and (b) the member is also a member of another limited liability
company.

S
ECTION 2. This act takes effect upon approval
by the Governor. The provisions of this act are retroactive and apply to any
limited liability company that exists on or after the effective date.

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This web page was last updated on January 13, 2026 at 2:38 PM