Is it legal for one managing member to open a separate bank account under LLC name and do not provide an access to other member?

Asked 12 months ago - Paramus, NJ

New Jersey LLC. 2 managing members - 50% of interest each. Company has an active bank account. Both partners has access to it.
At some point Member 1 decided to open a separate bank account under LLC name in other bank without notifying Member 2. Member 1 refuses to grant an access to that account to Member 2.
Is it legal?

Attorney answers (5)

  1. Frank A. Natoli

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    Answered . Like so many situations, the devil is in the details. But that said, this does sound kind of shady.

    I would first want to understand the operating agreement you entered into to make sure we are clear on the relationship here. If there is no written agreement, all the facts will need to be carefully considered along with the relevant provisions of the NJ statute and germane case law to determine a best course of action.

    I would strongly encourage you to reach out to a lawyer (perhaps several) in private for a free phone consultation to get some specific insights. Then you can better understand how best to proceed and with whom.

    Best regards,
    Frank
    Natoli-Lapin, LLC

    DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-... more
  2. Peter Joseph Lamont

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    Answered . It is generally not acceptable. I suggest that you retain an attorney to assist you and to protect your rights.

    If you found this Answer helpful, please mark it as "Helpful" or "Best Answer". Your feedback is greatly... more
  3. Steven A. Jayson

    Contributor Level 11

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    Answered . If such an action is not allowed by the Operating Agreement between the two member, then no. I would suggest you meet with an attorney.

    Steven A. Jayson, Esq. The Jayson Law Group LLC. www.jaysonlawgroup.com Office 908-258-0621 DISCLAIMER: THE ABOVE... more
  4. Aneliya M. Angelova

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    Contributor Level 18

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    Answered . Do you have an operating agreement? The answer may be there.

    This answer is for informational purposes only and should not be construed as legal advice.
  5. Christian K. Lassen II

    Pro

    Contributor Level 20

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    Answered . Operating agreement?

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