The 50% owner has the legal right to make decisions during the time that he or she is the owner just as you have the legal right to make decisions. Thus, if owner A buys a corporate jet, the corporation has bought the jet. If owner B buys a racehorse, then the corporation has bought a racehorse.
The only way to prevent liabilities is to include that in the purchase agreement and the corporate documents. For example, the purchase agreement could say that all purchases over $1000 require agreement from all shareholders
, etc. The same language should be in the bylaws
Since this is an important issue, a corporate lawyer should review this transaction to protect your rights. You can find them by conducting an internet search or by contacting the referral service of the state bar
in the state in which the business is located. Good luck.
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