Limited Operations Mode is triggered when LPs holding more than **66 ⅔%** of aggregate commitments send the GP **written notice** describing a **Material Breach**.
While in it, the fund enters a **restricted 90-day period** where:
- the GP and LPs must **negotiate in good faith**
- LPs’ **obligation to meet capital calls is removed**
- the mode can be extended in additional **90-day periods** by further written notice from the requisite majority
I can’t confidently confirm a complete list of every GP action the fund must stop beyond the fund being “restricted” and capital call obligations being removed. For exact prohibited activities, review the LPA and counsel.
References:
- https://decilehub.com/base/1-general_questions/19720-what-is-the-process-for-triggering-limited-operations-mode
- https://decilehub.com/base/1-general_questions/163614-how-does-limited-operations-mode-affect-in-flight-investments-and-already-issued-capital-call-notices
While in it, the fund enters a **restricted 90-day period** where:
- the GP and LPs must **negotiate in good faith**
- LPs’ **obligation to meet capital calls is removed**
- the mode can be extended in additional **90-day periods** by further written notice from the requisite majority
I can’t confidently confirm a complete list of every GP action the fund must stop beyond the fund being “restricted” and capital call obligations being removed. For exact prohibited activities, review the LPA and counsel.
References:
- https://decilehub.com/base/1-general_questions/19720-what-is-the-process-for-triggering-limited-operations-mode
- https://decilehub.com/base/1-general_questions/163614-how-does-limited-operations-mode-affect-in-flight-investments-and-already-issued-capital-call-notices