QUESTION
Can a son who runs the family business for 10 years be bought out if not a owner? Am i considered just an employee that has the authority to do all?
Asked on Aug 15th, 2011 on Business Law - New Jersey
More details to this question:
My father (66) and his brother (64) own a businees for 30 years (given to them by there father who had it for 30 years) The business has been in the family for over 60 years. I am the son (43) who has been running the business for the past 10 years. I make every decision from writing payroll to borrowing money from the banks to buying equipment. I have hit the point where I see that they are not stepping away from this business. I can not take it any more working with two people that have no clue what is going on with the business. My question is do i have any pull as a owner? Can i be bought out? Can i ask for severence pay thinking and being mislead that I would take over this business some in time. Just trying to to see if I leave can i be awarded for building a business or am i just on my own (employee) and thanks for working for us.
No stock shares have been passed down as of yet, Attorneys talk about it but they are very old school and not ready to let go.
1 ANSWER
Victor Obninsky
The quick answer is that you probably have no rights as an owner. Your father and uncle are the owners and you are not. What you have is the fact that only you can make the company go. They should make a deal transferring a certain percentage of the stock each year. This would keep you bound to the company since you will own more each year that you stay. It will also get their shares out of their estates without tax consequences. There are few "win-win" situations in the world, but this is one of them. If they don't buy the idea, I suggest you look for a company which appreciates you. Good luck.
Answered on Aug 15th, 2011 at 3:05 PM