QUESTION

How can I get out of this business contract?

Asked on May 28th, 2013 on Business Law - New York
More details to this question:
I bought 50% shares in a corporation (restaurant) in 2004 for $100k. There was a fire in the restaurant in 2007 and my partner refused to reimburse me for the money I put up to repair the restaurant, even though we got $40k+. I have not received any profits for the past year and have not received a 1099 since the fire. I need to get out of this business but my partner is offering me 45k to leave or I can buy him out for 45k, but I will have to also pay the outstanding workers comp (50k) and suppliers (20k) balance. I feel that it is not fair for him to reap monthly benefits from the restaurant, breach his fiduciary duty, and also force me to pay the workers comp and suppliers balance when he took a monthly salary for financially managing the restaurant. I am tired of this partnership that has only given me emotional distress. I have spoken to a few lawyers, but all have estimated this to be a costly matter. I am not sure what to do to get an affordable solution and get justice.
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1 ANSWER

Estate Planning Attorney serving New York, NY
1 Award
You must sue for dissolution.  That is your only right as a 50% shareholder.  The problem is there is no money here.  If the company has no equity, there is no money for you.  If the money the other guy took was due to an agreement, then it is allowed.
Answered on Jun 02nd, 2013 at 9:56 AM

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