Legal Question in Business Law in Delaware
LLCs
Can the majority of an LLC just get
together and vote to take away another
member's right to repayment of his
capital contribution and if not (I am
sure they cannot) why not?
Asked on 10/18/08, 7:58 pm
1 Answer from Attorneys
Warren Markowitz
Warren R. Markowitz, Esq
Re: LLCs
The actions of the members of the LLC are governed by state law and the operating agreement entered into between the members.
In general the other members can not deny the repayment of capital, if it is allowed under the operating agreement. This can not be done by a simple majority vote.
It is recommended that you review the operating agreement for the clauses that may allow under limited circumstances, the forfeiture of ones capital contribution.
Answered on 10/20/08, 8:51 pm
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