Legal Question in Business Law in Kentucky

llc partner agreements

as a 50/50 partner in a llc corporation, each partner is required to spend a certain amount of time in running the company. if we have a partner that doesn't spend any time in running the business and refuses to help when asked is that partner still entitled to all the dividends at the end of the year when the agreement clearly states that each partner must be a working partner, and if the business is sold is he still entitled to half of the procedes obtained during the time where he didn't fulfill his part of the agreement?


Asked on 2/03/04, 11:00 am

1 Answer from Attorneys
Jerome Gamache Ainsworth Thelin & Raftice, P.A.

Re: llc partner agreements

I cannot comment on Kentucky LLC law as I am not admitted to the Bar of that State and am not familiar with local rules and practice in that locality. However, as a general proposition, the Operating Agreement for an LLC should have provisions for both Dispute Resolution and Liquidation or Dissolution. If one member has basically "checked out" then the terms contained within the Operating Agreement will be critical in determining how to best proceed.

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Answered on 2/11/04, 8:44 am


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