How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dimitry K., Esq. Your Own Question
Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41220
Experience:  Run my own successful business/contract law practice.
18572087
Type Your Business Law Question Here...
Dimitry K., Esq. is online now
A new question is answered every 9 seconds

I am a director in a software company, I also own 25% of the

Resolved Question:

I am a director in a software company, I also own 25% of the shares. There are 3 other shareholders with 25% each ownership. One of the shareholders has the administrative rights to the company domain name and will not let the software engineer in charge have administrative rights for an upgrade to our servers. He also has the same rights to our email. In effect, he could shut down our internet company and our email if he wanted. There are 3 directors and he is one of the directors. The board(which he is one of 3 directors) asked if he would release administrative rights to at least one other director and he has refused...what can we do?
Submitted: 7 years ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 7 years ago.
Thank you very much for your question. This is a question that can be resolved by your operating agreement which should provide the directors with the right to compel the hold-out to provide services as requested. Or, as shareholders, you can vote the shares to compel the hold-out to provide the administrative rights to the name solely for upgrade purposes.

Since this appears to be an issue that goes to the heart of the business, and can subsequently cause harm to the company, you as shareholders also have the ability to file a breach of fiduciary duty suit, but only once your injury to the business occurs.

I realize that you are hoping for an easy answer here--your best bet is to review the agreements as it stands to see the voting privileges that you maintain. Otherwise, you might only be able to get rights via court order. I am sorry.


Dimitry Alexander Kaplun, Esq.


_______________________________________________________________________
Please click "accept" so I can be compensated for my assistance. Thank you!
Dimitry K., Esq. and 3 other Business Law Specialists are ready to help you

Related Business Law Questions