Legal Question in Business Law in Georgia
Non payment of bills
We have an llc with 4 partners holding a rental property. 2 partners have stopped meeting their financial obligations which is placing the remaining partners under a great deal of pressure. What recourse do we have on the non-paying partners?
3 Answers from Attorneys
Re: Non payment of bills
Generally, the rights and duties of the members are set out in the membership or operating agreement. If the two members are not abiding by the terms of the agreement, they may be subject to removal. Have a local business attorney review the LLC agreement and that should answer your questions.
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.
Re: Non payment of bills
How to deal with partners who do not meet their obligations, as well as removal of them, SHOULD be addressed in your operating documents. However, I have seen some sloppily prepared documents that failed miserably in this regard. Consult with a local attorney.
Re: Non payment of bills
IN the first instance, this should be covered in your operating agreement. You should have an attorney review the agreement and advise you of your rights. It may require litigation.
If the operating agreement does not address this issue, the situation is much more complicated, and will almost certainly require litigation. Again, consult an attorney for advice.
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