Aircraft LLC Operating Agreement Template for Canada

The Aircraft LLC Operating Agreement is essential for establishing and operating an aircraft-owning limited liability company in Canada. This document is typically used when two or more parties wish to form an LLC for the purpose of owning, operating, or managing aircraft while limiting their personal liability. The agreement covers crucial aspects including ownership structure, management rights, operational procedures, and regulatory compliance with Canadian aviation laws. It's particularly important as it combines standard LLC governance with specific aviation requirements under Canadian jurisdiction, addressing both Transport Canada regulations and corporate law requirements. The agreement includes detailed provisions for aircraft operations, maintenance protocols, member responsibilities, capital contributions, and profit distribution mechanisms, making it essential for any multi-member aircraft ownership structure in Canada.

1. Parties: Identification of all founding members of the LLC

2. Background: Context of the LLC formation and its primary purpose in aircraft operations

3. Definitions: Key terms used throughout the agreement, including aviation-specific terminology

4. Formation and Name: Details of LLC formation, registered name, and principal office location

5. Purpose and Powers: Specific purposes of the LLC including aircraft ownership/operation and permitted activities

6. Membership Interests: Structure of ownership, capital contributions, and membership units

7. Management Structure: Management rights, voting powers, and decision-making procedures

8. Aircraft Operations: Basic operational rules, compliance requirements, and safety protocols

9. Capital Accounts: Management of capital accounts and financial contributions

10. Allocations and Distributions: Profit/loss allocation and distribution procedures

11. Transfer Restrictions: Rules regarding transfer of membership interests

12. Meetings and Voting: Procedures for member meetings and voting requirements

13. Books and Records: Record-keeping requirements and member access rights

14. Dissolution and Liquidation: Procedures for LLC dissolution and asset distribution

15. Insurance Requirements: Mandatory insurance coverage for aircraft and operations

16. Regulatory Compliance: Compliance with Canadian aviation regulations and reporting requirements

17. General Provisions: Standard clauses including amendments, notices, and governing law