The causes for owners’ conflicts are numerous that often result in hardline disagreements over the direction and control of a company. If such disagreements are not resolved, this typically leads to an impending business separation or divorce. There are different ways to resolve a business separation, including negotiating settlement agreements or seeking formal court-imposed remedies under Florida’s Revised Limited Liability Company Act or Florida’s LLC statute under Chapter 605. If you choose to seek a split, here are initial issues to consider:
Does a Controlling Agreement (or Operating Agreement) Exist?
The analysis always begins with whether a controlling agreement is in place governing the event of a breakup. If a written agreement exists, it is usually in the form of an “operating agreement.” However, Florida’s LLC statute states that an operating agreement may not only be in writing but also can also be found to exist in oral form, implied in a record, or be a combination of both. In the event an operating agreement exists, such agreements govern the terms of the legal relationship. If the operating agreement is silent on a certain subject or if no agreement exists, Florida’s LLC statute will control and provide the default rules. However, it is important to note that Florida’s LLC statute sets forth certain rights that cannot be waived or contracted around by an agreement.
Obtaining Business Records
