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Anne_C
Anne_C, Attorney
Category: Business Law
Satisfied Customers: 2302
Experience:  Business litigator, 15 years' experience
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i am trying to remove my business partner in a llc formed in

Resolved Question:

i am trying to remove my business partner in a llc formed in idaho. it is an auto repair business. i have testimonials from current and former employees, saying that he is trying to ruin the business. he will not advertise, doesn't follow up with previous clients, has used some customer money for other expenses, sells auto parts from the business without paying the business, etc.
Submitted: 7 years ago.
Category: Business Law
Expert:  Anne_C replied 7 years ago.

Dear xxx:

 

Does your LLC have an operating agreement? If so, what does it say about removing a member of the LLC?



Edited by Rebecca_Admin on 5/2/2010 at 2:57 AM EST
Customer: replied 7 years ago.
in article vii; members dissociation 1. upon the first occurence of any of the following events, a person shall cease to be a member of the company, b; the death or court ordered adjudication of incapacity of the member. i guess my question then would be, do i have to have a judge or court determine if his actions are detrimental to the llc, and then can i have him adjucatided ?
Expert:  Anne_C replied 7 years ago.

Dear xxx:

 

Thank you for the additional information.

 

The phrase "court ordered adjudication of incapacity of the member" means that the member is incapable of taking care of himself (for example, he has Alzheimer's), not that he is acting against the interests of the LLC.

 

If those are the only reasons he can be removed as a member of the LLC, you should look at the provisions for dissolving the LLC, and dissolve it if appropriate; and then forming a new company or LLC yourself. It does seem that you have ample good cause to do so.

 

Alternately, you might want to consider buying him out of the LLC if the operating agreement allows it.

 

If you need to find an attorney to help you with this, please check www.findlaw.com.

 



Edited by Rebecca_Admin on 5/2/2010 at 2:57 AM EST
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