QUESTION
Does my spouse have any rights as minority owner in sub chapter s?
Asked on Feb 05th, 2015 on Business Law - California
More details to this question:
My spouse is minority owner of business. Partner has bought another business which is a competitor. He's greedy and using my husband's ideas in 2nd business and not doing his job in original business thus causing that business to suffer. My husband wants to start his own business but is afraid to be sued due to non-compete clause. He could leave business but we are dependent on his income. We just don't know what to do and feel really screwed by this guy. Furthermore, he takes evades taxes, pays for his divorces, wives cars w/ company money, has a $5000/month whole life insurance policy, ETC. Can you tell I don't like him? I fear he has a right to do all these things. Also, we never get our share of the profit because the books are manipulated all the time. Do we have a right to demand our share of profit? We do pay taxes on it and then the company give us the extra tax money. Thanks so much!
1 ANSWER
2 Awards
Your husband definitely has rights as the minority owner of a business and his partner, as majority owner, owes your husband a fiduciary duty. The situation definitely appears to be a bit too complicated to provide you with a meaningful answer beyond that without first reviewing any relevant documents memorializing their business relationship and hearing more of the factual background.
Feel free to contact me directly should you want to look deeper into this matter.
Thanks,Jon
Answered on Feb 06th, 2015 at 12:04 PM