QUESTION

My partner wants to sell his part of business (70%)somebody who I do not like. We have nail salon under corporation. Is any chance to prevent this action?

Asked on Apr 04th, 2011 on Business Law - Tennessee
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My partner wants to sell his part of business (70%)somebody who I do not like. We have nail salon under corporation. Is any chance to prevent this action?
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1 ANSWER

It depends upon what the corporate bylaws state.  If the bylaws give you the first right of refusal to purchase your partner's shares, then you may have the right to purchase the shares before the person you do not want to purchase the shares obtains an ownership interest in your business.  However, barring a first right of refusal or similar language, you cannot prevent your current partners ability to transfer his ownership interest to whomever he/she sees fit.   This is not intended to be legal advice, and is general in its nature.  No attorney-client relationship exists or is formed by this information.  Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.
Answered on Aug 15th, 2011 at 3:38 PM

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