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I am 50% owner manager of an LLC. My partners girlfriend works

I am 50% owner manager...
I am 50% owner manager of an LLC. My partner's girlfriend works at the business and is in charge of hiring and scheduling. lately she has been starting trouble and me and my partner don't talk because he is blinded by her. Can i legally fire her? What can he do? Can he stop me from firing her? He is also 50% partner manager.
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Answered in 18 minutes by:
7/19/2013
Loren
Loren, Attorney
Category: Legal
Satisfied Customers: 35,898
Experience: 30 years experience representing clients.
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Thank you for using JustAnswer. I am JudgeLaw and I will do whatever I can to answer your question and provide excellent service.

Before we begin, a bit more detail wold be helpful please.

Do you have an operating agreement?

Does the agreement require unanimous decisions by the managers?

Thank you.

JudgeLaw
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Customer reply replied 4 years ago

Yes we have an operating agreement.


The managers shall have the power and authority, on behalf of the company to (a) purchase, lease or otherwise acquire from, or sell, lease or otherwise dispose of to, any Person any property in the ordinary course of business, provided however, that the sale, exchange, lease, pledge, mortgage or granting of a security interest in any of the assets of the company other than in the ordinary course of its business must be approved by vote of the members in accordance with section 3.7, open bank accounts and otherwise invest the funds of the company, (c) purchase insurance etc. I don't see anything about firing an employee . Under the normal course of business its not unanimous. Plus she has access to the ofice where documents are held and i don't think its a good idea because she can harm the company if things get sour with Him.


 


Thanks Nick

Thank you for the additional information.

I am sorry to hear of your dilemma. I realize how frustrating this is for you, but I believe I have information which you will find helpful.

This is the reason why I generally advise clients to not set up 50/50 management. It is a design which guarantees deadlock.

In the situation you describe, yes, you can fire an employee unilaterally and your partner can rehire her unilaterally.

Both of you are entitled to manage the LLC equally. That means you will need to be able to come to some agreement regarding the girlfriend since the only alternatives are to rewrite the operating agreement or dissolve the LLC.

In the course of your discussions with your partner, you may want to look into restructuring the operating agreement to give certain unilateral authority to one of you to avoid future deadlock. In other words, one of you must have the final word or this will come up again and again.

It is my privilege to assist you. Let me know if you need further information.  I hope I have helped you beyond your expectations in the service I have provided to you.  I am here for you.

Please remember to rate my answer when our communication is completed so I will be compensated for my time in providing you with the information you requested.

If you feel the need to provide a low rating, please stop and reply to me via the REPLY button with whatever issue or clarification you may need. I will happily answer your follow-up questions and assist you until I am able to explain the answer to your satisfaction. Please also remember that I cannot control whether the law is favorable to your situation, so please do not penalize me for having to deliver bad news.

Thank you.

JudgeLaw
Loren
Loren, Attorney
Category: Legal
Satisfied Customers: 35,898
Experience: 30 years experience representing clients.
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