Legal Question in Business Law in Michigan

LLC Dispute

I invested in a LLC which is now going into dissalusion due to capital issues.

I invested $50K and each of the other parteners invested about 9K each. They have since taken draws to pay themselves back but I have only received about 5K.

Is my only recourse to take this dispute to arbitration and if so, am I entitled to the remaining assests of the LLC?

Please reply


Asked on 1/30/07, 1:26 pm

1 Answer from Attorneys
Jeffrey Buehner Jeffrey Buehner, PLLC

Re: LLC Dispute

If the LLC has an operating agreement, the operating agreement should have provisions regarding capital contributions and distribution of assets upon dissolution. If you and the other members are required to arbitrate, it must be pursuant to the terms of an operating agreement as the default provisions of the Limited Liability Company Act do not require arbitration. In light of the fact that you have 50k + invested, I would advise hiring an attorney to review your documents. You can call me at 248.865.9640 if you would like to schedule an appointment.

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Answered on 1/30/07, 2:39 pm


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