Legal Question in Business Law in New York

A partner and I have equal ownership of an LLC, in out operating agreement it says that if a partner decides to leave the company they are entitled to a sum equal to their initial capital investiment. Are there any laws in ny that may prevent this from holding up in court? His initial capital investiment wa $100, he took (stole) approx. $3000 in equiptment 2 months after he left. I would like to press charges to recover the equiptment however I do not want to open Pandora's box and find out that he is entitled to half the assets or some type of buy-out after the fact. E-mail: [email protected] Matthew Wawrzyniec


Asked on 1/03/10, 8:45 pm

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Review of the operating agreement is necessary to properly answer this question. However, your partner cannot steal equipment from an LLC that he owns. He is essentially stealing from himself. Therefore, I suspect he would be entitled to the return of his initial capital investment together with the fair market value of the LLC less the value of the equipment taken ($3,000).

Mike.

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Answered on 1/11/10, 12:12 pm


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