When Can A New Jersey LLC Expel One Of Its Members?

Disputes among members of a limited liability company (LLC) are not uncommon and can often be resolved outside of court. However, LLC disputes can sometimes escalate to the point that an LLC seeks to expel a member from the business. When seeking to remove a member, LLCs may rely on the provisions of their operating agreement regarding expulsion. In the absence of such an agreement, the New Jersey's Revised Uniform Limited Liability Company Act will govern.

There are various reasons why a New Jersey LLC may want to remove a member, including retirement, internal disputes, wrongful conduct, or death. In some cases, the members of an LLC can hold a meeting and adopt a resolution to remove the member (if approved by the majority of votes). However, if the member contests the removal, court intervention may be necessary.