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LLC tie-breaker

af1452af1452 subscriber Posts: 1
edited February 2007 in People: Hiring, Partnering, Mentoring
I am a member in an LLC in Connecticut that has no tie-breaker vote provision.  we are at a 2-2 standoff in a vote to extend the major tenants lease.  What happens next? Is there a state statue provision?help
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  • NYC696NYC696 subscriber Posts: 0
    I can`t speak to statutory remedies, but wouldn`t recommend them even if they exist since the legal cost would outway the business benefit (and, no offence, but I`m sure the taxpayers would rather you settle your own problems).

    1. Agree now to amend the corporate charter to include a tie-breaker provision.
    2. Fire the attorney who allowed you to incorporate the business without insisting on including a provision. (Even if all of you swore you trusted each other with your first-born children.)
    3. Resolve the immediate impasse
    3A. Agree to "arbitration" - select a 3rd party expert acceptable to all, present sides, abide that expert`s decision
    3B. Agree to a forced buy-out - each member (or side) makes a sealed offer for the others` shares; highest offer must buy, lowest offer must sell.
    3C. Tell your partners you want to clear the air by taking them out for a nice dinner. Get them very drunk. Conduct the vote just before they pass out.

    Good luck!
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