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