Legal Question in Business Law in Georgia

LLC partner misappropriated funds...Rights to company name?

I am a member of a business (LLC) with 5 individuals in the film/TV production area. One of the partners has been taking unauthorized funds from the account in excess of $7,000 for personal use.

We would like to ask what are the steps to officiially get him out of the company and will he have any rights to the company name since we have built a little buzz with it in the last 2 years? Thank you


Asked on 5/21/06, 4:30 pm

2 Answers from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: LLC partner misappropriated funds...Rights to company name?

To add to Mr. Riddle's response, if the LLC was properly formed, there should be company documentation that would dictate how and when you can "kick out" a member. Usually, there has to be some malfeasance, which would include stealing money from the company. There is also usually some kind of procedure the other members must follow to get rid of the other member. If there is no company documentation on point, it will be much more complicated.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 5/22/06, 8:32 am
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: LLC partner misappropriated funds...Rights to company name?

The steps you would take are beyond the scope of this forum, and would require a review of the relevant documents (operating agreements, management agreements, etc.), and specific facts. These documents, if well drafted, may answer many of your questions. Otherwise, you will most likely have no choice but to hire a lawyer to guide you through it.

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Answered on 5/21/06, 5:45 pm


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