Deadlock-Breaking Mechanisms in LLCs: Avoiding Litigation and Dissolution When Members and Managers Fail to Agree
Drafting Buy-Sell Provisions, External or Internal Tie-Breakers, Put or Call Options, Provisions for Partition or Sale
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will provide corporate counsel with a framework for adopting deadlock-breaking mechanisms in limited liability company (LLC) operating agreements, and potential state law consequences when no such arrangements are in place. The panel will also discuss arbitration and mediation provisions as alternatives to litigation or judicial dissolution.
Outline
- When deadlocks arise in LLC decisionmaking
- Provisions designed to resolve deadlocks
- Buy-sell
- External or internal "tie-breakers"
- Put or call options
- Partition or sale of the company or its assets (and when that is appropriate)
- Provisions requiring alternative dispute resolution
- Mediation
- Arbitration
- The goal: avoiding litigation or judicial dissolution
Benefits
The panel will review these and other high priority issues:
- What are the typical triggers of a deadlock between members or managers?
- What are the key provisions that should be included in the LLC's operating agreement to resolve the deadlock?
- When is a partition or sale appropriate to resolve a deadlock?
- What are the advantages and disadvantages of arbitration and mediation, and what should the LLC provide?
Faculty

Kathleen A. Kelley
Shareholder
Bean Kinney & Korman
Ms. Kelley focuses her practice on corporate and transactional law and government contracts. Her client base... | Read More
Ms. Kelley focuses her practice on corporate and transactional law and government contracts. Her client base encompasses local business, nonprofits and Fortune 500 companies. Having focused on corporate law throughout her career, Ms. Kelley has gained extensive experience in a variety of corporate and government contract matters, including business formations and entity selection, joint ventures, M&As, owner exits, ownership disputes, shareholder and LLC operating agreements, and regulatory and compliance matters. She also serves as an expert witness in corporate organizational matters and presents regularly on corporate matters.
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Peter A. Mahler
Partner
Farrell Fritz
Mr. Mahler’s litigation practice concentrates on corporate dissolution proceedings, contested stock valuations,... | Read More
Mr. Mahler’s litigation practice concentrates on corporate dissolution proceedings, contested stock valuations, derivative actions and other disputes among co-owners of closely held business entities, including limited liability companies, partnerships and business corporations. He is a recognized authority and frequent lecturer on “business divorce,” about which he has written hundreds of articles on his widely followed blog, New York Business Divorce. He provides pre-litigation counseling to business owners involved in emerging disputes with business partners and, when litigation results, he represents clients through all phases of trial, appellate, mediation and arbitration proceedings.
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