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Summaries and analysis of recent Delaware court decisions concerning business-related litigation.
Morris James Blogs
Court Of Chancery Upholds Cash Calls To Eliminate Minority Owner
This is a great decision on how to get rid of a minority owner in an LLC when she is disruptive.
Using a cash call and then liquidation can overcome an operating agreement’s supermajority voting protections for minority owners in the right circumstances. What is most important is to always act fairly in terms of the economics to the minority owner.