Liquidating distribution for partnership
These human qualities (or failings) can produce disputes, sometimes ugly disputes.
The business divorce provisions in a Shareholders Agreement will in many ways be a good template for similar provisions in a Partnership Agreement or LLC Agreement. April 29, 2016) the Delaware Chancery Court addressed a dispute between members of a tech company. We don’t know what precipitated the dispute between the IP Members and Mr.While a wise business law practitioner might begin to draft business divorce provisions for an LLC Agreement using a Shareholders Agreement template, she will not simply cut and paste. One set of members were responsible for creating the intellectual property of the Company. The other set was a group of members providing capital led by Mr. Turner, but, you can imagine what might have happened, based on the differing interests and backgrounds of the groups involved.Rather, she’ll modify the Shareholder Agreement provisions, sensitive to the business, economic, and tax differences between corporations and partnerships/LLCs. In any case, the IP Members sought to have the LLC dissolved under judicial dissolution.No business entity is clearly superior in all cases.While different circumstances call for different entity choices, there is at least one constant in business. Human beings have weaknesses, vulnerabilities, varying degrees of emotional management, and differing ethical codes.