We'll help you find the right solution for your needs
Does this sound like your topic?
I am a partner in an LLC in NJ. I did an inappropriate yet minor offense as partner and after going through arbitration was disassociated as a managerial partner and awarded money for my shares. However, I have since learned that because of the " all saints" case, it is not allowed upon disassociation, to force a shareholder or owner to sell his shares, but rather he could be disassociated from a membership role and become an assignee, retaining his shares. I do not want to sell my ownership . Nj law states I don't have to, my question is can an arbitrator, in binding arbitration, over step her bounds by requiring I sell my shares? She does not even practice in NJ nor does she understand NJ llc law. Please answer , I am hoping to maintain my shares as the company is growing now . ThanksAlso, the claims for arbitration did not include forcing the shareholder to sell his ownership shares. Following is taken from a nj law journal: A new Appellate Division decision in New Jersey, styled All Saints University Of Medicine Aruba v. Chilana, App. Div. (per curiam) (Dec. 24, 2012), highlights the intricacies in the law for inter-member disputes and the importance of having a clear operating agreement, and that is particularly so with the adoption of the Revised LLC Act. All Saints provides guidance on the type of conduct that will cause a court to allow a forced dissociation with the business (there, failure to advance working capital and interruption with business operations), and also clarifies that a forced sale of the dissociated member’s shares is not permitted under the existing LLC Act.