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N Cal Attorney
N Cal Attorney, Attorney
Category: Business Law
Satisfied Customers: 9258
Experience:  Since 1983
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My uncle is a member of an LLC with 5 others to equal 6

Customer Question

Hello,
My uncle is a member of an LLC with 5 others to equal 6 total members. The members are all equal shareholders.
The LLC is a ranch where 1000 acres were totally conveyed to the LLC through official documents including a survey. The 1000 acres are the LLC’s asset and represents the ranch in full.
My uncle is taking resources from the ranch without disclosing activity or sharing profits to other members; he is enriching himself and his own company as well as his employees (non members) by harvesting its resources, and causing damage to the land.
It is not condoned by at least two of the members of the LLC.
This activity has never been reported through any meetings or voted on by members. It was never decided as allowable in any forum or quorum or meeting or LLC document.
His industry is not an industry practiced by the LLC nor will it ever be due to lack of equipment and expertise. It is completely unrelated to the LLC’s business.
He is essentially embezzling resources from the LLC’s asset. Discussion of his activity among the other members or voting on it now is not realistic.
I would like to know the corporate law terminology and some previous decisions please about the violations he is committing by doing this.
It is in Colorado.
Thanks –
-J
Submitted: 7 months ago.
Category: Business Law
Expert:  N Cal Attorney replied 7 months ago.

Than you for your question.

He is basically misappropriating corporate assets and breaching his fiduciary duties to the LLC.

There are cases on breach of fiduciary duty starting at page 35 of

http://www.baylor.edu/content/services/document.php/117967.pdf

Is that the language you were looking for?

Customer: replied 7 months ago.
Thank you - I have found this and I appreciate your help. I am trying to learn the name of the charge - the charge or charges upon which relief could be granted please? Breach of contract is one charge, and what else could they be called please?