Please help me with the next step I must take to review and inspect records of an LLC in Pa that I am a member (20%) with a $400,000.00 investment. The President and Secretary are related to each other and between their family own 80% of the LLC. I recently discovered they have been giving me misleading financial information so I requested to a scheduled visit to the office to inspect the records. I also sent (via certified registered mail) a request for financial records to the President and the corporate attorney. Since January 13, 2012, I have sent 7 e-mails, two certified letters and several phone calls- all have been ignored. They are not permitting it and have canceled the mandatory annual members meeting because I requested explanations for the financials to be discussed. There is a written Operating Agreement which says the LLC is supposed to supply members with monthly income statements and balance sheets. This has not been done. I have been and investor/shareholder/member since 2008. I don’t have the money to hire an attorney so I wondered if I should (Pro SE) be filing a preliminary injunction in the county district court to stop them from refusing to provide me with financial information. Do you have a better suggestion?
State/Country relating to question: Pennsylvania
PA Code Chapter 89
LLC Operating agreement
It is obvious now that they are not going to provide you with anything, and that they are not going to do so unless forced. A injunction action is not appropriate in this case. You have a shareholder suit against the majority shareholders. For an accounting, among other things. This is complex litigation. You have $400,000 at stake. Find or save up the money for a litigation attorney. An injunction cannot be sought to "stop them from refusing" to do something.
You confirmed what i thought. my thoughts are to file a compliant pro se just to get the ball rolling so I can start discovery. File for breach of contract and Piercing the Corporate Veil. During discovery if I find fraud and such, move forward and invest in an attorney. does this sound reasonable?
You are bold but I would not do that. This is a minority shareholder derivative lawsuit. It is specialized litigation and you do not want to mess up your chance to recover 400K.
23 Years business & securities law, NY and FL bars. SEC all states.
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