QUESTION

My business partner wants to buy me out of contract. Do I have to accept any buyout? Im not wanting to leave our current contract.

Asked on Jul 31st, 2017 on Business Law - Texas
More details to this question:
He owns 60% and I own 40% of an llc. Do I have to leave the company if he wants me gone?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
What does you operating agreement provide?  Does it have a buy/sell or other provision which alows the majority member to compel the minority member to sell his interest?  If not, and if you haven't breached your duty to the llc in some way, you are under no obligation to accept any offer to buy you out.  As a practical matter, however, the majority (and presumably managing) member has a lot of power to make matters difficult for you if you stick around.  For example, you don't indicate whether you are employed by the llc or only an investor, but if you are employed it is possible (depending on what your employment agreement provides) that the majority mamber can fire you.  You would remain a member of the llc, but not an employee, and wouldn't be drawing any salary.
Answered on Aug 01st, 2017 at 7:18 AM

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