Ann S. Lee, left, and Gregg A. Martin, right, are partners in Greenberg Glusker in Los Angeles. Courtesy photos Do You Know About the Equitable Buyout Remedy for Fraud?
The recent holding from the California Court of Appeal provides a powerful equitable remedy to a minority owner defrauded by the majority owners, according to Greenberg Glusker's Ann Lee and Gregg Martin.
July 31, 2023 at 10:37 AM
6 minute read
The California Revised Uniform Limited Liability Company Act, Corporations Code Section 17701.01 et seq., does not provide an LLC member owning less than 50% with a guaranteed right to be bought out.
Rather, under Corporations Code Section 17707.03, if a minority member of an LLC files a judicial dissolution action (invoking one of the statutory grounds under Section 17707.03(b)), the other members have the option—but not the obligation—to buy out the minority member's interest pursuant to Section 17707.03(c).
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