Challenge:
In the aftermath of a very difficult business divorce from its previous chief financial officer, the remaining officers and members of a limited liability company came to us. They wished to revise their corporate structure and bring discipline to their corporate meetings in order to avoid a repeat of the business divorce. This involved a considerable amount of work, including revising the operating agreement so that questions of indemnification and advancement were aligned with the expectations of the corporate officers and members.
Solution:
We assisted our client with revising the operating agreement and formalizing the corporate procedures to prevent a messy business divorce — and provide a clear path for exiting partners.
Result:
The threat of devastating litigation was greatly reduced, and partners have since left the LLC with minimum friction.