Court Of Chancery Upholds Cash Calls To Eliminate Minority Owner

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CanCan Development LLC v. Manno, C.A. 6429-VCL (May 27, 2015)

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.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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