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What basis does the founder have to that anti-dilution rights are illegal? Against the SEC? Against Michigan law?
I have never heard of such a blanket prevention. It is not illegal. It is a standard provision that some choose to include in an operating agreement. The anti-dilution provisions allow a member to maintain its membership interest percentage in the case when the LLC issues membership interests to new members. Such protections may include: a veto right on new issuance of membership interests and admission of new members; limitation on capital calls (for example, no additional capital calls without consent of all members); and pre-emptive rights that allow a member to purchase any class of membership interest being offered in order to maintain their percentage interest. - See more at: https://www.lexisnexis.com/legalnewsroom/corporate/b/blog/archive/2013/11/20/what-should-be-included-in-llc-operating-agreements-part-ii.aspx#sthash.1krrpWVy.dpuf
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