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Ellen, Attorney
Category: Business Law
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Experience:  25 years of experience helping people like you.
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how can shareholders remove the chairman/founder of a LLC for

Resolved Question:

how can shareholders remove the chairman/founder of a LLC for incompetence?
Submitted: 7 years ago.
Category: Business Law
Expert:  Ellen replied 7 years ago.

Thank you for your question.

The shareholders elect and may remove any member of the Board of Directors.

A member of the Board of Directors can be removed by the shareholders at a duly authorized shareholder meeting. Therefore the first step would be to notice a shareholders meeting for purposes of removal of the person. At the meeting a vote need to be taken to remove the director
Expert:  Ellen replied 7 years ago.
FLAandNYLawyer - need further clarification on question. I'm a member of a Delaware LLC, registered in California. The founder is bi-polar and killing every hope of the company. The unit holders want to remove him from the company and use his units to pay others to do what he was supposed to do. What law can we use to remove him.

the unit holders you may remove the Chairman of the LLC for cause at a duly held meeting by voting him out. The cause is breach-of-contract and breach of fiduciary responsibility.
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