How to remove CEO from our company legally?
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How to remove CEO from our company legally?
The CEO of the small LLC I work for has been in the mental hospital for just about a month now. Where he has called clients of the company telling him we are no longer in business, tried to terminate utilities, fired everyone over the phone and in voice messages.His partner, my boss want him to be fired as CEO and and to stop being destructive to the business and we need to know how to go about doing that?
Asked on May 13, 2009 under Business Law, North Carolina
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
This is an unfortunate situation. In order to answer the question, I would need to see what the LLC agreement says between the unstable CEO and your boss. Generally, when one partner is causing the LLC not to run properly or damaging the business, there are clauses that permit either a removal or a dissolution of the company where profits are divided and your boss can start up a new company without the CEO. It also depends on how much interest in the LLC each of them have. I am sorry I cannot give you additional advice other than to obtain a copy of the agreement and go see a lawyer in your area to look at the LLC agreement to determine the removal procedures.
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