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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 44469
Experience:  32 years of experience practicing law and a businessman.
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can a partner force the other partner to buy him his shares

Customer Question

can a partner force the other partner to buy him his shares out in an LLC if there are no provisions as such in the partnership agreement?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard replied 1 year ago.

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. If there are no specific provision in the agreement, neither partner can force the other to purchase their ownership in the LLC. But, neither can either partner prevent the other from selling their ownership to anyone else if not restricted in the agreement. But, if one owner wants out, and the owners cannot come to an agreement, the owner wanting out can force a judicial dissolution of the LLC.



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Customer: replied 1 year ago.

Would a court force judicial dissolution of a profitable business or would they force a fair market price buyout?


 


What if the partner willing to sell shares only for above market price?


 


What if partner willing to buy me out for over market price but I don't want to sell?

Expert:  Richard replied 1 year ago.

Can you tell me in what state you are located so I can answer you more specifically? Thanks.

Customer: replied 1 year ago.

TEXAS

Expert:  Richard replied 1 year ago.

Thank you! If the LLC is a profitable operating business, it's not likely the court would grant a judicial dissolution under the Texas LLC Act. That's because a judicial dissolution is only granted in Texas based on the following provision:

Art. 6.02. A. On application by or for a member, a court of


competent jurisdiction may decree dissolution of a limited
liability company if it is not reasonably practicable to carry on
the business of the limited liability company in conformity with
its articles of organization and regulations.

So, in your case, the business is going to continue as is unless you partner can offer you a price at which you are willing to sell. He cannot force that upon you.

Customer: replied 1 year ago.

thanks for your time


 

Expert:  Richard replied 1 year ago.
You're welcome...it's my pleasure to help!
Richard, Attorney
Category: Business Law
Satisfied Customers: 44469
Experience: 32 years of experience practicing law and a businessman.
Richard and 8 other Business Law Specialists are ready to help you
Expert:  Richard replied 1 year ago.


Thank you so much for the positive rating! I appreciate having had the opportunity to serve
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the future, just look me up and I will be happy to help!

Expert:  Richard replied 1 year ago.
And, thank you for the bonus! I appreciate your kindness and generosity!

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