QUESTION
What could I do if my partner is threatening to close down the company?
Asked on Jul 02nd, 2015 on Bankruptcy - North Carolina
More details to this question:
My partner who has 51% of the company (I have 49%) is threatening to shut down the company. He wants out, can he legally do that? It has only been opened for 2 months. I can't afford an attorney please help.
2 ANSWERS
Thomas Edward Gates
It depends upon the form of the company and what the operating agreement/by-laws say. Any vote of the share holders or members would have you on the losing end since he owns a majority of the company. The documents I mentioned should have addressed how the company assets are to be distributed upon closure of the company.
Answered on Jul 02nd, 2015 at 2:42 PM
Do you have an agreement with your business partner? The dissolution vote is governed by that agreement. If you have no agreement, you are in trouble. The partner may be able to dissolve. You have the option to purchase his interests and continue business.
Answered on Jul 02nd, 2015 at 2:17 PM