Redwarrior's moral dilemma, esp. legal info

[redwarrior]

Have a meeting of the board and have his signature removed from the checking account.

There should be something you can use in the LLC forms book.

Other things to think about - he is the vice-president. We want to remove him, but until we talk to our attorney, we can't really do anything. And, if we remove him, what does that mean as far as his responsibility to the debts owed? Of course, there is still a second mortgage on his house; the bank is not going to just let that go.

My husband spoke with our banker yesterday, and he was sympathetic and willing to work with us. We have provided millions of dollars of business to this bank over the years (my husband is also a mortgage banker) and have a very good relationship with them. This is also the bank that has the second on our houses.

As far as removing his signature from the checking account, I will talk to my husband about that now. I think all they need is minutes stating that we made the decision and signed by two officers.

Edit: We have another checking account. We decided to just use that one, and stop with the other one. That way he won't realize what we are doing just yet. We're trying to tread softly here, without pissing him off. So far he doesn't seem vindictive, just a little stupid. Believe it or not, I actually feel sorry for him.

 

[Sun Baked]

As far as removing his signature from the checking account, I will talk to my husband about that now. I think all they need is minutes stating that we made the decision and signed by two officers.

Edit: We have another checking account. We decided to just use that one, and stop with the other one. That way he won't realize what we are doing just yet. We're trying to tread softly here, without pissing him off. So far he doesn't seem vindictive, just a little stupid. Believe it or not, I actually feel sorry for him.

I was just saying the signature on the bank account right now.

The signature is easy, and still something to think about, it isn't anything vindictive ... it is just a sound decision for the company to make to remove someone that left.

It is cheap and the form for the minutes required should be in you LLC form book, or the banker will help you.

Can't do much else until you figure out what you want to do. Especially since the credit line is a sticky problem until you can find a way to replace it.

 

[redwarrior]

This is getting funny now. He actually called today wanting to come back.

 

[WildCowboy]

Did he find out that they actually do do drug testing at the place he was going?

So sorry to hear about the difficulties, red...I don't really have any advice to offer beyond what's already been given, but my thoughts are with you.

 

[iJohnHenry]

This is getting funny now. He actually called today wanting to come back.

What?? After sabotaging your clients?? Some gall!!!

 

[redwarrior]

Like I said, he has no clue what this means. I laugh at him, but I shouldn't; I am the one who should be laughed at, for partnering with someone who clearly doesn't understand what running a company is about.

 

[iJohnHenry]

I think he finally understands that he could lose his house over this.

 

[63dot]

Abstract, exactly my thoughts. I don't understand his decision or what will happen as a result. I do understand that he needs an income, and I know that it must be hard for him. But you are right, he is playing with fire. I'm just concerned that we will get burned in the process. (Yes, I'm confused too.) And, I'm baffled that the other company would hire him. They have also employed my husband in the past and know of our business. They are a large corporation, and I'm sure they have a conflict of interest policy that is being violated here.

About the guy's wife... she recently cheated on him. (Adding fuel to the proverbial fire.) They are trying to work it out. But, she also owns her own styling salon and is paying the bills, so my husband thinks that he is keeping her there only for that reason.

Yeah, effed up alright. We are praying, and I have an amazing amount of peace through all of this. I know it will work out, and I won't really know how until it does.

I want to be as informed as possible, which is why I posted. You guys (and girls) always help me to see and think of things that otherwise I would not.

Thanks for the well wishes too. I know they are sincere.

A counselor or attorney who specializes in mediation may be in order here. It's what they do day in and day out. The situation seems far too difficult to work out among yourselves right now. Of course, this can change, but hopefully, things will work out well.