UTAH
I currently own 35% of an LLC, there are 3 other members. Member 1 owns 30%, member 2 owns 20%, member 3 owns 15% and I own 35%. I want to purchase the 15% from member 3 and 1% from member 2, so that I would own 51%. Both member 2 and 3 are okay with this purchase. Member 1 however objects to the purchase, the remaining 3 members including myself want a single person to have a majority stake in the company.
My question is, since I am already a member, do I need Member 1's approval before purchasing the shares from Members 2 and 3? Or do we just need the majority of the members to approve it. I know if we are admitting a new member then we would need 100% approval, what are the laws concerning share transfers between already existing members? Also, since Member 3 will no longer hold any interest in the company, do we need to do anything special for their withdrawl? 60 days written notice etc.
I currently own 35% of an LLC, there are 3 other members. Member 1 owns 30%, member 2 owns 20%, member 3 owns 15% and I own 35%. I want to purchase the 15% from member 3 and 1% from member 2, so that I would own 51%. Both member 2 and 3 are okay with this purchase. Member 1 however objects to the purchase, the remaining 3 members including myself want a single person to have a majority stake in the company.
My question is, since I am already a member, do I need Member 1's approval before purchasing the shares from Members 2 and 3? Or do we just need the majority of the members to approve it. I know if we are admitting a new member then we would need 100% approval, what are the laws concerning share transfers between already existing members? Also, since Member 3 will no longer hold any interest in the company, do we need to do anything special for their withdrawl? 60 days written notice etc.