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Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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FLAandNYLawyer - need further clarification on question

Customer Question

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.
Submitted: 7 years ago.
Category: Business Law
Customer: replied 7 years ago.
Sorry it took so long to reply. I didn't see this email.

The founder of the company I invested in has turned out to be a liar and an accused scam artist from Canada. He has controlling interest in the company. The majority of the investors (actual bodies) want him out. However he holds 50.1% of the units. Are company is located and registered to do business in California, but the LLC was formed in Delaware. What are the legal steps we need to take, after the body decides to get rid of the founder. Is there California Business and Professions Code to base a lawsuit. Can we get rid of him because he made material misrepresentations and failed to perform under the contract that conveyed tghe 50.1% to him? He is lacking in competency, integrity and health. He furthermore breached his fiduciary duty to the shareholders by trying to do a side deal with a potential investor who wanted to work with our company. We need a plan of action (after the noticed meeting) to get rid of him. Thanks. Joan. XXX-XXX-XXXX