Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
First, as to your personal assets, those are shielded from liability due to the actions of the corporation or the president. You would have no personal responsibility if you neither own the corporation or make decisions. So long as the transfer of shares was handled appropriately, that is all is required to remove ownership. Even if you were an owner, your personal assets would be shielded due to the corporate business structure.
As to your written agreement with the partner to return control of the business, this would be an enforceable agreement so long as all of the essential terms are in writing and signed by both parties. If the new president refused to comply, you would be forced to file suit to enforce the terms of that agreement.
Thank you Please click on the ACCEPT button for my answer so that I receive credit for assisting you. You may continue to ask follow-up questions after accepting. If the information is helpful, I would very much appreciate positive feedback. Bonuses are also appreciated. The responses do not create an attorney-client relationship and are informational only.
So, if I understood correctly if I transfer 100% of the shares to him, he is liable for any mistakes or loans from this point on? See the thing is that the company has been losing money for past 3 years and he thinks he can turn the company around. Last 2 years, I took very little money from the company (like 30-50K w2 per year)... however, this year that he is on the board, I am getting paid salary of 13K per month on W2).
If I would like to buy a house (lets say next year or year after), I dont want the company status be a problem for me (because he is talking of taking some loans - which I never took any loans from banks and financed everythin personally - so I am kind of paranoid).
If I have to pay more, please let me know!