Legal Question in Business Law in New York
Do we have to notify a partner if we are removing him from the DBA even if majority (3 of 5) signed off on it?
2 Answers from Attorneys
I'm not sure you are properly describing the situation. A DBA or "doing business as" is not an entity and therefore it has no partners. You may have a LLC or a partnership and in such case you first need to review the operating agreement or the partnership agreement of the entity to review the permissibility and procedure for a removal
If the agreement is silent on this point then one would need to review the relevant statutes (laws).
A removal of a member or a partner is a significant matter as it pertains to the property interest of the removed person and if permissible it has to be done properly or the remaining members/partners and the entity may incur significant liabilities.
I think you need to consult an attorney before you proceed with the removal. Feel free to contact my office at your earliest convenience.
Roman R. Fichman, Esq.
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I concur with Roman that such action cannot be done arbitrarily and without notice. If someone has been a partner or co-owner in an entity, that person cannot be arbitrarily dropped, and the rules, regulations, agreement provisions and law must be followed.
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