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In LLC partnership, can I fire the CEO/President?

Los Angeles, CA |

We have set up LLC business with four partners (myself and my wife included) and were not satisfied with the performance of our other two partners (husband and wife too). Being a good hearted person, we gave them equal share of the company, 50/50.They always complain that they don't feel good, always late on appointments, not protecting company's interest, the lady do not drive, do not know how to type (both of them), and my wife was doing all the typing and writing
correspondences and articles that needs to be publish.We have invested our own money, time and
hard labor, and they do not have money invested, but also we put more time on it. Our company is a newspaper publishing company, and it's a free paper, we generate income through advertisers. We feel we were being taken advantage.Lo

Attorney Answers 3

Posted

First, a bit of terminology: In an LLC, you are members, rather than partners.

Do you have a written operating agreement? If so, it should prescribe how officers and appointed and removed.

You should consult a local business attorney who can examine the relevant documents and explain your rights and obligations.

You may find the information at the link below informative.

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.

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Posted

When you formed the LLC did you have a lawyer? Did they have a lawyer? Is there an operating agreement or membership agreement. Does it describe how to break a deadlock?

Maybe you can just tell them you will walk away and form another company, since you are doing all the work the company will then fold.

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Posted

As has been mentioned the key to your issue is likely answered in the oerating agreement. In the absence of that agreeent, you will likely have few optios other than a judicial dissolution ordered by court (i.e., the court after a lawsuit shuts down the whole entity an disbiurses the assets.) There may be also the option to try to impose a duty to be bought out (however, that is rarely an option, especially where the moving party is not a minority member (i.e., less than 50% holder of the company)). Issues of wrongdoing, negligence, and other negative conduct or omissions by your partners should be presented to help bolster your case. Also, the actual scope of options you have will be driven by state case and statutory law, so it is critical you at least consult with a local attorney who is fmailiar with "business divorce" litigation.

I hope this helps.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.

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