Q: Can a member of a NJ LLC without an operating agreement authorize the sale of real estate without consent ?
A member (35%) ownership wanted to sell an income producing property. The member gave power of atty to their son who put the property on the market with a licensed real estate agent. The other members each owning 34.5 % each (65% total) were opposed. There wan never a meeting in person or over the phone between all 3 members.
A: Without a court order if the other parties disagree this would be improper. The other 2 members should definitely get a lawyer to protect their rights.
A:
Without reviewing all the organic documents, it is impossible to give an answer that is specific to your problem. Generally, all acts of the LLC must conform to the the basic agreement which defines the powers granted and the voting requirements to carry out certain activities. Do any of the remaining 65% ownership go along with the sale?
What is being proposed as to the funds received for the sale? What are the required voting percentages to carry a motion, what percentage of ownership constitutes a quorum?
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