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.
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.
The threat of devastating litigation was greatly reduced, and partners have since left the LLC with minimum friction.