B
Biggerintexas
Guest
- Jurisdiction
- Texas
I am one of four partners in an LLC. One of my partners has been taking distributions straight from the bank account in excess of agreed amounts. Over the last three years, these started small and have grown since. Today the total excess is over 100k.
Each time, the partner gave some sob story or claimed that he mistakenly used the wrong debit card...all while promising to pay the money back...which never happened.
Everything came to a head early this year when the partner withdrew over 20k from the account. We removed him from the accout amd took his debit card....which did not stop him from attempting to deposit two 9 month old distribution checks that he had in his possession (instead of cashing the checks back then, he electronically transfered the funds and promised to destroy the checks).
Later I found out that he leased an apartment under the company name without our approval...he has since broken the lease and now the property managers are coming after our company.
My partner has not paid any income taxes in three years and continues to rack up a bill which I have no idea how it will affect the company.
Our operating agreement states that all profits are to be shared equally, however, for the past three years we've had a gentleman's agreement that the two who were actually running the company (myself and this other partner) would be the only ones to get distributions as the other two had full time jobs and could not particulate much.
Since coming to a head earlier this year, we have "terminated" the partner and his role in the company with one of the other partners taking over his reponsibilities (and the old partner's distributions).
My gut tells me that despite this gentlemans agreement, the operating agreement reigns supreme and that at any time, any one of us could demand that agreement be nullified and we go back to the operating agreement.
There seems to be some confusion amongst my partners that we have the right topay some partners a "salary" per se for work they do and then split any profits after that. But again my gut tells me that isn't true. In other words, I don't think we have the right to say "well bI'll get's 25 percent of the profit but that's after paying partner Sam a salary". Does that make sense?
My other two partners are a mystery to me. Either they have a soft spot for this guy or they're afraid to act. Either way, things are deteriorating.
What do I do?
Each time, the partner gave some sob story or claimed that he mistakenly used the wrong debit card...all while promising to pay the money back...which never happened.
Everything came to a head early this year when the partner withdrew over 20k from the account. We removed him from the accout amd took his debit card....which did not stop him from attempting to deposit two 9 month old distribution checks that he had in his possession (instead of cashing the checks back then, he electronically transfered the funds and promised to destroy the checks).
Later I found out that he leased an apartment under the company name without our approval...he has since broken the lease and now the property managers are coming after our company.
My partner has not paid any income taxes in three years and continues to rack up a bill which I have no idea how it will affect the company.
Our operating agreement states that all profits are to be shared equally, however, for the past three years we've had a gentleman's agreement that the two who were actually running the company (myself and this other partner) would be the only ones to get distributions as the other two had full time jobs and could not particulate much.
Since coming to a head earlier this year, we have "terminated" the partner and his role in the company with one of the other partners taking over his reponsibilities (and the old partner's distributions).
My gut tells me that despite this gentlemans agreement, the operating agreement reigns supreme and that at any time, any one of us could demand that agreement be nullified and we go back to the operating agreement.
There seems to be some confusion amongst my partners that we have the right topay some partners a "salary" per se for work they do and then split any profits after that. But again my gut tells me that isn't true. In other words, I don't think we have the right to say "well bI'll get's 25 percent of the profit but that's after paying partner Sam a salary". Does that make sense?
My other two partners are a mystery to me. Either they have a soft spot for this guy or they're afraid to act. Either way, things are deteriorating.
What do I do?
