There’s sure to be fireworks — or at least litigation — when one of two 50% members of an LLC attempts to terminate the other for wrongful conduct as vaguely defined in the LLC agreement, as illustrated in an appellate ruling last month in Harker v. Guyther, featured in this week’s New York Business Divorce.
Continue Reading Court Construes Member Expulsion Provision in LLC Agreement
Can an LLC continue its existence after a member exercises the right to terminate the operating agreement? Justice Stephen A. Bucaria’s recent decision in Matter of Fassa answers the question, as explained in this week’s New York Business Divorce.
Continue Reading Termination of Operating Agreement Triggers LLC Dissolution
Case law involving judicial dissolution of LLCs is still in its infancy. A recent Delaware Chancery Court decision takes another small developmental step, while also highlighting the need for operating agreement buy-sell provisions that stand a reasonable chance of avoiding business divorce litigation. It’s in this week’s New York Business Divorce.
Continue Reading Two-Member LLC Operating Agreement Contains Recipe for Dissension and Litigation