Q: There are 5 partners in an LLC as follows 2 30% owners 1 20% 2 10%. one of the 30% buys out the 20% behind closed doors
The other partners had no knowledge of any of this until after the fact. This has impacted the partners big time changing the dynamic. The problem is the one owning 50% now is in no way equipped to make financial decisions on behalf of the company. He's already proven that. At the very least shouldn't the other 30% owner been told of this in case he wanted to purchase some of it or at least make plans to get out? The investment has now been altered in a manner that's now questionable. Doing it behind everyone's back leaves a bad taste. What can be done & is that transaction legal?
A: Do you have an operating agreement? Most operating agreements have buy-out clauses that prevent this from happening. Without an operating agreement, your options are limited.
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