Dealing with a partner who closed the business without your consent and took half the funds is serious. First, review your partnership agreement to see if it addresses such actions or outlines dispute resolution processes. You may have grounds to sue for breach of fiduciary duty, as he could be jeopardizing the business and your investment. Consult a lawyer to explore legal options, including recovering the funds and holding him accountable for any financial damage caused. If the business is still operational with ongoing work, you might also seek an injunction to protect your assets and continue operations.
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Hire a Lawyer.
What does your OA say?
Individuals have a fiduciary duty to consider the company’s best interests. It’s possible that you can get part of that money back, but you’ll need to weigh your options against the cost of hiring an attorney.
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We didn’t possess one.
To be honest, this is what I’m considering.
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You ought to have a standard OA if you have an LLC. It should specify that majority share partners must approve any significant changes. You two would be in that situation.
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Yes, it is possible to participate in an LLC partnership without an OA. It’s just something you’d be generally foolish not to do, not a legal duty.
I am not an OA partner in an LLC.
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We shared 50% of the ownership of a multi-member LLC. We incorporated it incorrectly.
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Since not all companies are LLCs. States differ greatly in this standard. Getting an LLC is not a big problem in Colorado; in fact, most firms need one. Most small businesses in Texas do not have an LLC, and obtaining one is a very difficult process.