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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 111569
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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My business partner in our S-corp resigned with no notice effective

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My business partner in our S-corp resigned with no notice effective immediately. He started his own company doing the same business venture, but now on his own. What responsibility does he have to debt and on-going work that is not completed and what entitlement does he have to assets? We have a buy-sell agreement for stock shares, but no other documents in place, including non-complete clause.
If he was a partner, then he remains liable for any debt up to the date that he resigned and he would be entitled to a share of the assets based on the value of the corporation at the time of the resignation. You need to have the shares valued and the assets evaluated now to determine the proper value that he should receive as his buyout.

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