QUESTION
If I close my business, will my partners be entitled to my assets in the company?
Asked on Jan 16th, 2011 on Bankruptcy - New Hampshire
More details to this question:
I have 2 partners in the corporation. I am the only one with money still in the business. We are closing the business. Are my partners entitled to there percentage of the bank account and assets even though they got all there money out and the money in there is from what I invested?
3 ANSWERS
What, if anything, that your fellow shareholders are entitled to is complicated. It depends an all of the assets and debts of the corporation, as well as all money paid in and taken out by all shareholders. It is not possible for me to answer your question without knowing more about the facts of your matter.
Answered on Jan 17th, 2011 at 12:58 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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It does not sound like your partners would be entitled to anything but depending on the amount involved you might have a dispute with your partners over what each is entitled to receive upon dissolution of the corporation. You should always put things in writing because when things do not work out there is a great potential for those kinds of disputes. If it is a corporation there should have been stock issued and whatever was put into the business should have been reflected in the number of shares each received. Your partners should not have been allowed to get anything out because it all belonged to the corporation and they had no right to take corporate assets without approval by all the corporation owners or the board of directors depending on the type of corporation. Therefore, when they make a claim against you there should be an offset for whatever they took out already. You need to discuss the situation with your ex-partners and come to an agreement to avoid an expensive legal battle.
Answered on Jan 17th, 2011 at 9:43 AM
Family Law Attorney serving Kingston, NH
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That will depend on your incorporation documents and operating agreement.
Answered on Jan 17th, 2011 at 4:28 AM