LAW 101 SEU Profit Division in A Limited Liability Company Case Study Discussion

Case Study of John, Lesa, and Trevor form a limited liability company.(Book name)Kubasek, N. K., Brown, M. N., Herron, D. J., Giampetro-Meyer, A., Barkacs, L. L., Dhooge, L. J., & Williamson, C.

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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?

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