What if my partner steals the money

[inector]

In case of a US LLC, where there are 2 partners, 1 from US and another is foreign (important), both own 25%+ of shares...

What if 1 partner decides one day to go and withdraw all the funds...or declines to pay dividends to the other one.

Can one do that?

And if yes, how would you sue them, considering they are not in the same jurisdiction?

 

[JohnnyDoe]

inector said:
In case of a US LLC, where there are 2 partners, 1 from US and another is foreign (important), both own 25%+ of shares...
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Did you split exactly 50/50? This is never advisable”¦

inector said:
What if 1 partner decides one day to go and withdraw all the funds...or declines to pay dividends to the other one.
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Lawyers celebrate

inector said:
Can one do that?
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Yes.

inector said:
And if yes, how would you sue them, considering they are not in the same jurisdiction?
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Do you have a decent operating agreement?
Joint signature on the bank account?

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[inector]

JohnnyDoe said:
Did you split exactly 50/50? This is never advisable”¦
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Currently incorporating, preferably 50/50, I guess I could negotiate 51/49, or 60/40 (I will do all the work anyway). I need him only for his citizenship (it's required for a platform I sell on)

JohnnyDoe said:
Do you have a decent operating agreement?
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Yes, possible

JohnnyDoe said:
Joint signature on the bank account?
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Can be done. The problem is that he might say "I don't want you to take your dividends", so I assume joint signature cannot help here.

 

[JohnnyDoe]

inector said:
Can be done. The problem is that he might say "I don't want you to take your dividends", so I assume joint signature cannot help here.
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at least he won't take your dividends.
Setup a way to kick him out in case he doesn't honor the agreement.

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[inector]

JohnnyDoe said:
Setup a way to kick him out in case he doesn't honor the agreement.
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Smart, will do, if he declines to withdraw dividends - no shareholding.

 

[TheCryptoAnt]

You call your friend Vladimir, he knows how to handle this.

 

[JohnnyDoe]

For example:

In the event that a partner declines or obstructs the other partner's rightful withdrawal of dividends as per the terms outlined in this Operating Agreement, the obstructing partner hereby agrees that their share of the company shall be subject to transfer to the other partner. Such transfer shall be executed within a reasonable timeframe and in accordance with the procedures set forth for the transfer of ownership interests as outlined in this Operating Agreement.

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[inector]

JohnnyDoe said:
the obstructing partner hereby agrees that their share of the company shall be subject to transfer to the other partner.
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If Vladimir was a lawyer, that's what he would write

Thanks

 

[jafo]

TheCryptoAnt said:
You call your friend Vladimir, he knows how to handle this.
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The ONLY effective and cheap solution here. smi(&%

 

[Jerry1911]

JohnnyDoe said:
within a reasonable timeframe
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I'm not a lawyer, but I would specify an exact number of days instead