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Resolving Business Partner Disputes
Summary
In New York, business partners have fiduciary duties, including providing necessary documents. Forcing a partner to resign from an LLC depends on the operating agreement. If a partner breaches fiduciary duties, review the operating agreement for removal provisions, gather evidence, and consider mediation or legal action. Upon LLC dissolution, IP ownership is typically governed by the operating agreement or distributed according to ownership percentages. Consider consulting a lawyer for guidance on interpreting agreements and addressing breaches.Full Conversation
My business partner is refusing to provide documents necessary for taxes
Hi ****! That sounds frustrating.
- In Florida, business partners have a fiduciary duty to each other, which includes providing necessary documents.
- Florida law (Florida Revised Uniform Partnership Act) outlines these duties.
Are you considering legal action or looking for a way to resolve this amicably with your partner?
- In Florida, business partners have a fiduciary duty to each other, which includes providing necessary documents.
- Florida law (Florida Revised Uniform Partnership Act) outlines these duties.
Are you considering legal action or looking for a way to resolve this amicably with your partner?
What about in New York?
In New York, business partners also owe each other fiduciary duties, including the duty to provide necessary documents. The New York Partnership Law (NYPL) governs these relationships.
- Partners must act in good faith.
- They must provide access to books and records.
Are you considering legal action or seeking an amicable resolution?
- Partners must act in good faith.
- They must provide access to books and records.
Are you considering legal action or seeking an amicable resolution?
I would like to try an amicable resolution first, but legal action may be inevitable
In Florida, attempting an amicable resolution is a good first step. Here are some suggestions for resolving the issue:
- Communication: Schedule a meeting to discuss the importance of the documents.
- Mediation: Involve a neutral third-party mediator.
- Formal Request: Send a written request for the documents.
If these steps fail, you may need to consider legal action. Are you familiar with the mediation process, or do you need more information on how to proceed with it?
- Communication: Schedule a meeting to discuss the importance of the documents.
- Mediation: Involve a neutral third-party mediator.
- Formal Request: Send a written request for the documents.
If these steps fail, you may need to consider legal action. Are you familiar with the mediation process, or do you need more information on how to proceed with it?
In New York, in a multiple member LLC, if I own *% of the LLC and my business partner owns *%, can I force him to resign?
Hi ****! In New York, forcing a partner to resign from an LLC is not straightforward, even with majority ownership. Here are some key points:
- The LLC operating agreement generally governs the terms of resignation or removal of members.
- If the agreement allows it, you may be able to remove your partner.
- Without an operating agreement, state law may apply, but it typically does not provide for forced resignation.
Do you have an operating agreement in place for your LLC?
- The LLC operating agreement generally governs the terms of resignation or removal of members.
- If the agreement allows it, you may be able to remove your partner.
- Without an operating agreement, state law may apply, but it typically does not provide for forced resignation.
Do you have an operating agreement in place for your LLC?
Yes
Hi ****!
Since you have an operating agreement in place, the next step is to review it carefully to understand the provisions for member removal or resignation. If the operating agreement allows for the removal of a member, follow the outlined procedures. If you're unsure about the specifics, consulting a lawyer to help interpret the agreement might be beneficial.
Do you need any further guidance on interpreting your operating agreement or any other aspect of your situation?
Since you have an operating agreement in place, the next step is to review it carefully to understand the provisions for member removal or resignation. If the operating agreement allows for the removal of a member, follow the outlined procedures. If you're unsure about the specifics, consulting a lawyer to help interpret the agreement might be beneficial.
Do you need any further guidance on interpreting your operating agreement or any other aspect of your situation?
The LLC is a media company with IP. If the LLC closes, which of us retains ownership of the IP?
Hi ****!
The ownership of the IP upon the dissolution of an LLC would generally be governed by the operating agreement and the laws of Florida. Here are some key points to consider:
- Review the LLC operating agreement for any specific provisions regarding IP ownership upon dissolution.
- If the operating agreement is silent, the IP may be considered an asset of the LLC and would typically be distributed according to the members' ownership percentages or as agreed upon by the members.
- Florida law may also provide guidance on the distribution of assets upon dissolution.
Do you need further clarification on your operating agreement or additional information on the dissolution process?
The ownership of the IP upon the dissolution of an LLC would generally be governed by the operating agreement and the laws of Florida. Here are some key points to consider:
- Review the LLC operating agreement for any specific provisions regarding IP ownership upon dissolution.
- If the operating agreement is silent, the IP may be considered an asset of the LLC and would typically be distributed according to the members' ownership percentages or as agreed upon by the members.
- Florida law may also provide guidance on the distribution of assets upon dissolution.
Do you need further clarification on your operating agreement or additional information on the dissolution process?
If a member of the LLC is in breach, for example has failed in his fiduciary duties, can I demand his resignation?
Hi ****! In Florida, if a member of an LLC breaches their fiduciary duties, you may have options, but demanding resignation isn't straightforward.
- Review your operating agreement for provisions related to member breaches and removal.
- Consider legal action for breach of fiduciary duty.
- Mediation might be a viable step before pursuing legal action.
Do you need guidance on the legal process for addressing fiduciary breaches?
- Review your operating agreement for provisions related to member breaches and removal.
- Consider legal action for breach of fiduciary duty.
- Mediation might be a viable step before pursuing legal action.
Do you need guidance on the legal process for addressing fiduciary breaches?
Yes
In Florida, addressing a breach of fiduciary duty in an LLC involves several steps:
- Review your operating agreement for specific provisions on member breaches and removal.
- Gather evidence of the fiduciary breach.
- Consider sending a formal notice to the breaching member.
- Mediation can be a less confrontational approach.
- Legal action for breach of fiduciary duty may be necessary if other methods fail.
Would you like more detailed information on any of these steps?
- Review your operating agreement for specific provisions on member breaches and removal.
- Gather evidence of the fiduciary breach.
- Consider sending a formal notice to the breaching member.
- Mediation can be a less confrontational approach.
- Legal action for breach of fiduciary duty may be necessary if other methods fail.
Would you like more detailed information on any of these steps?
This is in the state of New York
Hi ****!
In New York, addressing a breach of fiduciary duty in an LLC involves the following steps:
- Review Operating Agreement: Check for provisions related to member breaches and removal.
- Gather Evidence: Document the fiduciary breach.
- Formal Notice: Send a formal notice to the breaching member.
- Mediation: Attempt to resolve the issue through mediation.
- Legal Action: If other methods fail, consider legal action for breach of fiduciary duty.
Would you like more detailed information on any of these steps?
In New York, addressing a breach of fiduciary duty in an LLC involves the following steps:
- Review Operating Agreement: Check for provisions related to member breaches and removal.
- Gather Evidence: Document the fiduciary breach.
- Formal Notice: Send a formal notice to the breaching member.
- Mediation: Attempt to resolve the issue through mediation.
- Legal Action: If other methods fail, consider legal action for breach of fiduciary duty.
Would you like more detailed information on any of these steps?
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