If I’m 1/3 owner of an LLC. and am in a dispute with my business partners, can I use company fund to hire an attorney to fight my partners with?

Asked on December 10, 2015 under Business Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, you can't, because as a 1/3 owner, you do not have the power to direct the use of company funds against the wishes of the other 2/3 of ownership. A minority owner cannot require a company to pay for his/her challenge to the company or other owners. If you bring a lawsuit--which you'd have to pay for--and win, under certain circustances of sufficiently wrongful behavior by the other owners, you could get reimbursed some or all legal fees (assuming the company has the money for it), but you can't count on that and you'd have to foot the cost yourself in the first place.

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