QUESTION
Can my Partner in a California S Corporation Stop me from Leaving to form a new company?
Asked on Oct 05th, 2017 on Business Litigation - California
More details to this question:
We Have a CA S Corporation with No partnership or operating agreement. I am the one who no longer wishes to be partners anymore. I attempted a by out offer but he wants a unrealistic amount, because I think he has no intentions of selling out. I offered to sell out to him and go our own ways but he will not do that either. We did roughly 200k last year with one customer, my wife's company, so the business leaves with me. I feel he is going to try and tie me up in litigation so he can continue to do nothing and collect 1/2 the money. We have $66K cash and receivables which I own 1/2 of. will resigning and surrender my stock free me of my fiduciary responsibilities to the company. How do I protect my interest in the $66k?
1 ANSWER
3 Awards
One possibility to think about is an involuntary dissolution, as allowed by Cal. Corp. Code sec. 1800 et seq. This allows people without a majority interest an "out," and it could be good leverage to an orderly sale of assets or stock. Check with a business lawyer in your area as to what is best for you. Lawyers.com can help you do that.
Answered on Oct 05th, 2017 at 12:54 PM
This answer does not mean I am your lawyer. No attorney-client relationship exists. This response is for general information only.