John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir
Question:
John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent of the profits, in accordance with his contribution. Lesa and Tabir, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue. What law will the court apply? In most states, what will result? How could this dispute have been avoided in the first place? Discuss fully. (See The Limited Liability Company.)
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Related Book For
Business Law Text And Cases
ISBN: 9780357129630
15th Edition
Authors: Kenneth W. Clarkson, Roger LeRoy Miller
Question Details
Chapter #
38- Limited Liability Companies and Special Business Forms.
Section: Business Scenarios and Case Problems
Problem: 1
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Question Posted: July 01, 2021 04:21:43