Legal Question in Business Law in Texas
LLC partners conflict of interest
I own 25% interest in an LLC that was set up to develop a housing subdivision. The partners that own 50% have put our investment in jeopardy by using our LLC to benefit their other interest and business. Do I have any course of action to hold the 50% owners liable for my investment?
3 Answers from Attorneys
Re: LLC partners conflict of interest
The answer is a "maybe", depending upon the language of the operating agreement and the actual actions the 50% holders have taken.
Re: LLC partners conflict of interest
The short answer is yes. There may be issues of usurping a company opportunity, breach of fiduciary duty, conversion, breach of contract, fraud, etc.
Re: LLC partners conflict of interest
It sounds like you may have a cause of action. However, I am unclear how they used the LLC to benefit themselves at the expense of your interest. I would need more information before I can make an assessment.
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