- Case Study
John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent of the profits, in accordance with his contribution. Lesa and Trevor, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue.
What will be the result?
How could this dispute have been avoided in the first place?
Action Items- Read the case study above.
- By the due date, submit your answers to the case study questions. Justify your answers.
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