Legal Question in Business Law in New Jersey

Re: llc member removal

The answer to your question will depend upon what you have all agreed upon (much much better if this is in writing), and if you have not agreed upon how you will deal with these issues, then it will take more information for any attorney to give you a definite answer.

There are several ways to deal with a partner in a business who does not hold up her end of the agreement. I suggest that you talk to a lawyer before you take any action.

Please call me if you would like an attorney to assist you. I am in Hackensack, right across from the Bergen County Courthouse.

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Re: llc member removal

Every multi-member LLC should have an Operating Agreement that covers such matters. If not, the members are a the mercy of the defaults in the LLC statute which are frequently not very helpful. In your case (1) there is no statutory requirement that an LLC member work in the business; and (2) there is no provision to expel a member without a court order. So, unless you have an Operating Agreement that covers the situation, your choices are (1) convince the member to resign; (2) buy her out; or (3) go to court and convince the judge that she is violating the verbal agreement that you had.

You also mentioned that your partner waa not meeting financial obligations. If that means a contribution to capital that you can prove, that will strengthen your case in court.

If there is a business left after whatever happens happens, make sure that you have a good Operating Agreement.

See also: http://info.corbettlaw.net/lawguru.htm

Re: llc member removal

Every multi-member LLC should have an Operating Agreement that covers such matters. If not, the members are a the mercy of the defaults in the LLC statute which are frequently not very helpful. In your case (1) there is no statutory requirement that an LLC member work in the business; and (2) there is no provision to expel a member without a court order. So, unless you have an Operating Agreement that covers the situation, your choices are (1) convince the member to resign; (2) buy her out; or (3) go to court and convince the judge that she is violating the verbal agreement that you had.

You also mentioned that your partner waa not meeting financial obligations. If that means a contribution to capital that you can prove, that will strengthen your case in court.

If there is a business left after whatever happens happens, make sure that you have a good Operating Agreement.

See also: http://info.corbettlaw.net/lawguru.htm