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Disburt with my business associates

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S

stockholder36

Guest
Kentucky,
I am one of three managers in a small LLC business. My other two associates and I are also shareholders, directors, and officers. The company also has a total of nine outside shareholders, mostly friends and relatives.

We did not take a salary, but we each agreed to receive a small monthly income from the company. During the process of reviewing the company's detailed Quicken financial files in May of 2001, I discovered they each had taken over $30,000 from the company as income and additional benefits without my knowledge for over a year. One of the associates managed all the financial records which he only provide me controlled financial reports.

When I brought this to their attention on June 5, 2001, one of the associates did not want to discuss it. I was told by the other that they had a meeting and decided to pay themselves more and me less, and since two votes were the majority out of three, I would have been out voted and was not needed at the meeting. They strongly believe that they own the company.

Bottomline, only the shareholder members have the authority to appoint and remove managers, and I believe my associates went beyond their authority. I was not notified and unaware of their private discussions.

Do I have a legal case against them?
 


JETX

Senior Member
Wow!! Based purely on your post, I would say that you have a valid cause of action. However, in order to make a final determination, one would have to review all the facts, any agreements and the corporate records.

I would suggest that you contact a local attorney to review this matter.
 

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