Erratic behavior from partner of LLC, is a restraining order possible if said behavior is a risk to the business?
Question Details: Partners (4)all own equal shares in LLC. One partner has a drinking problem and is not showing up for work, and when he does is under the influence of alcohol and unable to perform job. Partner also aggressive and volatile towards employees and customers when drinking. Can we prevent him from being on the property ( which is leased ) even if he is part owner? What steps can we take to protect our investent?
Business Law Answers
You will need to hire a lawyer to represent the three continuing owners, because there's a good chance that you will have to dissolve the LLC, form a new one with the three of you to continue the business and buy out the problem partner. The starting point is going to be your operating agreement, or the state statutes if you didn't bother to put one together.
Document the behavior that was damaging to the company business, because that's your justification for keeping him out in the short term; a temporary restraining order can issue if you can prove that there will otherwise be irreparable harm (lost customers, etc.).
I am admitted in CA and NY and suggest you firmly attempt to buy the 4th partner out. S/he is a liability to you and your company. If you want to consult with me, please call me at 310-552-0808. Brenda Feigen
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