Delaware LLC Law
Budget: $250 – $750 USD
We need a legal opinion regarding the Delaware LLC statute.
We have an LLC that was incorporated in Delaware in 2020. We never signed a formal Operating Agreement which, I believe, means we are governed by the default LLC statue of Delaware.
Our question centers around a situation where one member is not contributing as much as the other members in terms of time at work. We need to understand the remedies available to us under the default laws. Can the majority of shareholders vote to expel the member? Can the majority shareholders vote to kick them out of day to day operations and stop distributions (not taking away their shares in the company)? Can the majority shareholders vote to pay this member a lower distribution than their percentage of ownership allows? Can the majority shareholders vote to force a buyout of the member?
We would want the law to be explained and cited along with more information on the grounds needed to bring such an action and the remedies available to the majority shareholders.
We have an LLC that was incorporated in Delaware in 2020. We never signed a formal Operating Agreement which, I believe, means we are governed by the default LLC statue of Delaware.
Our question centers around a situation where one member is not contributing as much as the other members in terms of time at work. We need to understand the remedies available to us under the default laws. Can the majority of shareholders vote to expel the member? Can the majority shareholders vote to kick them out of day to day operations and stop distributions (not taking away their shares in the company)? Can the majority shareholders vote to pay this member a lower distribution than their percentage of ownership allows? Can the majority shareholders vote to force a buyout of the member?
We would want the law to be explained and cited along with more information on the grounds needed to bring such an action and the remedies available to the majority shareholders.