QUESTION
if a business owner transfer complete ownership to another person without being paid for the shares of stock, does he still have claim to the busines?
Asked on Mar 29th, 2016 on Business Law - Pennsylvania
More details to this question:
The business has been in the second person's name for at least two years. The original owner has been slightly involved in the company ei. making phone calls, running errands. The two arranged that they would still split the profits and that they would be partners. Currently the new owner wants to make changes to the way the business runs and the old owner is upset and wants to get his shares of stock back. Does he have a right to his shares back?
1 ANSWER
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If you do not have anyting in writing concerning the terms of your agreement to transfer the company, its very difficult to answer this question. If your business is incorporated or an LLC, the business statutes might provide some guideance on governance issues. I doubt you can get the "stock" back just b/c you disagree on business decisions but you may have a voice in what those decisions are. Tough situation without anything in writing.
Answered on Apr 08th, 2016 at 10:54 AM