As a 50% owner of an LLC, can my partners get me out of my business in anyway if I have not harmed the business?
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As a 50% owner of an LLC, can my partners get me out of my business in anyway if I have not harmed the business?
I am a partner of a gym 50% and share ownership with a married couple that owns the other 50%. The husband and myself are in recovery (recovering addicts) and we signed an agreement that stated if one of us relapses that person will become a silent partner for 90 days. I had a relapse but did not let it affect the function or profits from the gym. Can they legally take ownership of my half?
Asked on July 24, 2011 Florida
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Please take the agreement to someone to read on your behalf. It needs to be read in its entirety. What happens after the 90 days? Does it say that they become the owners? Who drew up this agreement and why did you sign anything that says something like that? I could see having the relapsed party fall back for a period of time in order to get clean again but giving up ownership rights? Please. It sounds like this agreement may be bordering on unconscionable but courts uphold agreements entered in to and negotiated between parties unless they are so one sided or against public policy or one party signed it under duress - what ever legal "out" can be used. Get help. Good luck.
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