Business Blackmail: How to Expel an Unethical Partner from an LLC?
Partnerial consent is the foundation of business success, however what happens when a partner artificially blocks company development? The requirements of Georgia’s new “Law on Entrepreneurs” have placed many companies in a deadlock — minority shareholders often refuse to sign essential documents, demand unreasonable payments, and put the business at risk of liquidation.
What does the law say? Georgian legislation protects companies from destructive partners. If a partner’s actions harm the company, or if they grossly violate their duties (for example: blocking decisions, refusing to update the charter, engaging in competitive activities), the remaining partners are entitled to request their compulsory expulsion through the court.
What is required for expulsion?
Existence of a substantial ground — it must be proven that the partner’s continued presence makes normal business operations impossible.
A proper legal strategy — expulsion is a highly complex dispute requiring solid evidence and a well-structured interim relief application to prevent the opposing party from bankrupting the company during proceedings.
KH & PARTNERS’ recommendation: If your partner is using the business as a hostage, wasting time equals losing the company. We have experience in turning hopeless cases into precedents. We do not accept the opponent’s blackmail — we restore control of the company to your hands through legal counteraction.
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▪️ 33+ years of experience in the field of law
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Contact us today and let’s schedule a working meeting:
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📍 Tbilisi, Georgia