What can I do as a managing partner of an LLC to regain my rights regarding the company’s finances, if an attorney/member has not handled things properly?
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What can I do as a managing partner of an LLC to regain my rights regarding the company’s finances, if an attorney/member has not handled things properly?
There are 3 other members. We recently voted to revoke the rights of 1 of our members to write any checks from the company. In the proccess somehow my rights also got revoked. Now 1 of our members, who is the attorney who wrote the agreement, has all the rights to the company finances. He is not paying our bills on time and he is not paying our employees on time. Do I have the authority to override this agreement or is there anyway I can take back control of the finances?
Asked on September 23, 2015 under Business Law, Louisiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
You can bring a lawsuit in chancery court a division of your local county courts in order to seek a court determination "declaratory judgment" restoring your control or authority, as well as a court order "injunction" requiring bills and staff to be paid in the interim. In the process, if the other member has misappropriated or diverted any money e.g. to himself or his family, you may be able to sue him and recover compensation for the business. You should speak with an attorney who does business litigation or handles business disputes a lawsuit/legal action is the only way to address this situation if, as appears to be the case, you cannot work it out voluntarily.
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