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 Roger Your Own Question
Roger
Roger, Attorney
Category: Business Law
Satisfied Customers: 31012
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
6704987
Type Your Business Law Question Here...
Roger is online now
A new question is answered every 9 seconds

A company with husband and wife husband is president and wife

This answer was rated:

A company with husband and wife: husband is president and wife is vice president. Both are board members, business partners, stock holders . Can a board member, husband, with 51% of a business fired another board member, wife, with 49% of a business ?

Hi - my name is XXXXX XXXXX I'm a Business litigation attorney here to assist you.

 

No, you cannot be fired because you're an owner on equal footing with the other owner.

 

However, the majority owner has the right to try and buy you out. The details of a buyout should be in your corporate operating agreement. The agreement should contain stipulations about buying one or the other out under particular circumstances.

 

Being a majority share holder may also mean he is the one that can force the sale of the business. But if so, it would be stipulated in the contract.

An owner can't be fired. But it's possible that a buyout can be forced. Read your contract and see how the partnership was set up.

Customer: replied 5 years ago.

I'm not talking about buy and sell the company but the question was can the majority share holder , husband, has a board meeting, with his business friends who has no name in the business , without the minority owner and share holder, wife, be present and together they all legally can fired and eliminate the wife out of the business. This way he doesn't have to pay his wife 49% of the share of the business since she's no longer a business partner, board member ? or the meeting has to have both husband and wife to be present in order to have the mutual agreement?

As I said, an owner cannot be fired. Thus, under no circumstance can the majority owner fire the minority owner.

However, the majority owner can try to buy you out. Also, the majority owner can dissolve the company.

Under any scenario, you're entitled to be paid for your 49% interest. You cannot be fired and
receive nothing for your ownership interest.
Roger and 2 other Business Law Specialists are ready to help you

Related Business Law Questions