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TJ, Esq.
TJ, Esq., Attorney
Category: Legal
Satisfied Customers: 12369
Experience:  JD, MBA
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My ex-husband and I have three LLCs. I have 51 percent ownership

Customer Question

My ex-husband and I have three LLC's. I have 51 percent ownership of all these entities. My husband manages one company and makes the decisions for it, and I manage the other. The third entity is a database that I manage, but we both benefit from. We set up a business agreement which states we have to have 50k to distribute, distributions. This agreement also says we must provide each other with codes to everything. My ex-husband locked me out of his side of the business, a place where my server housed, he refuses to provide me codes and takes distributions whenever he wants. He also told all his employees not to contact me or talk to me. He does the books for both companies and will never provide me with information. He now says in e-mails not to contact him by phone, fax, e-mail or text. If I ask a question about accounting he hangs up on me. He is also charging all his personal expenses to his side of the company, which in the mediated statement says all personal expenses must be paid out of our own accounts. If I sue him, is there anyway I can completely get him out, or an I SOL
Submitted: 4 years ago.
Category: Legal
Expert:  TJ, Esq. replied 4 years ago.
Hello, and thank you for allowing me to assist you.
If you sue your ex and win, then the LLC can get a judgment against him for his personal expenses that should not have been paid by the LLC. I say that the LLC would have a judgment because the LLC, which is a separate legal entity, would be the plaintiff in the case.
Such a lawsuit would not get him kicked out of the LLC, however. You, as the majority owner can kick him out of his management position. No lawsuit is required for that. However, he would still be able to keep his ownership interest. You cannot force him to sell his ownership interest unless there is a provision in the articles of organization that allow for a buyout under certain circumstances. But from what I understand of what you've written here, the big issue is that you need him out of his management position so that he cannot misuse LLC funds for his personal benefit. You can do that by exercising your rights as majority owner (after all, an LLC is a "majority rules" entity).
Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied. Also, your positive feedback is much appreciated.
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