Legal Question in Business Law in Texas

How important are voting rights compared to interest in an LLC

WWe have formed and LLC with 3 people, Myself in atlanta, GA and my so called friends in Allen, tx couple. We 50% equal partners, me having 50% interest and them sharing the other 50% intherest! When it came to the voting rights I gave up 2% too his wife an well as he so I have 48% and he has 48%, his wife who became a maniac have 4% voting right. How can voting rights hurt me and the company, Can she vote me off the LLC or my partner who is working of the team? She already threatened stuff last night, and I almost want to get out! Can she take signuture off the bank account, she threatened that as well, she is the CFO. Help


Asked on 5/15/08, 3:11 am

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: How important are voting rights compared to interest in an LLC

The terms of the company operating agreement control who owns what percentage and how decisions are made. Unlike most corporations, percentage ownership is not always the same as voting rights. So, just because a member owns 4% of the company, it may have nothing to do with their managerial power. In addition, it would be unlikely that the operating agreement allows any member to vote out another member. You should have a business attorney review the operating agreement because you seem to have a lot of questions regarding your rights.

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.

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Answered on 5/15/08, 9:24 am


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