Before our LLC was formed and I became a member, the three parties involved formed an agreement. They were going to start day trading and form a company. They all agreed to invest $2,000 each to start trading with. Since two of the parties involved were running low on cash to start, the third volunteered to pay for a lifetime training / student package from a trading educational company and put $6,000 cash of his own money into an account to start the trading, then get reimbursed. We will call him moneybags. One of the guys low on cash, we'll call brains, knew all about this educational company and the broker.
Moneybags was under the impression that the student package was joint with him included, as well as him being joint on the account he transferred $6,000 of his money into. Obviously from this thread that wasn't the case. Since there is now a disagreement on the direction of the company now a month down the road. Brains is holding the money in his account and the student package as leverage to get majority voting power in the company.
The Student package was paid by moneybags on his credit card. There is a clause in the student agreement stating if the student and the card holder are different persons the student is responsible for the authorization of the charge on the card. There is also a section on the agreement for credit card information and for the cardholders signature. But there is nothing stating the card holders signature is for authorization. Another clause in the student agreement states the money for the student package can be refunded within three months.
The cash transferred into brains account was to be used to get the company going. Moneybags was under the impression he was jointly on the bank account. He was not. Not to excuse his lack of attention to detail. However he has recently been dealing with serious medical problems with not one but two of his children.
In conclusion, nobody wants to do business with brains now. Brains however still believes we want to want to work together. I started the LLC before all this came to light,but no articles or bylaws were written. Brains is holding out until he is given majority voting power in the company written in the bylaws, then he says he'll transfer the money to a business account held by the LLC. We need to know were moneybags stands legally to apply pressure to brains to refund the student package and give up the money.
OK 2 questions.
Where does moneybags stand legally for the student package?
And of course
Where does moneybags stand legally on getting his money out of brains account?