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Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2125
Experience:  Practicing Attorney with 10 years experience
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I got an answer to this question earlier: If an 80%

Customer Question

I got an answer to this question earlier: If an 80% shareholder elects to dissolve a corporation and such dissolution would provide that the 80% shareholder would get 80% of net profit until business wound up, is that a conflict requiring that the 80% shareholder disqualify himself for voting fordissolution.
The answer was that it was not a conflict.
My other question was regarding the minority shareholder's threat to sue for damages and punitives. The answer I got was that as long as he gets his 20%, he has no cause of action.
My new question is..can someone give me some Tennessee citations to case law or statute that covers this?
and if the bylaws require the corporation to buy back the 20% as treasury stock because the 20% guy will go into another firm at dissolution and no longer be an employee, does a conflict arise?
AND..if 80% guy recommends to the board...himself...to pay 20% guy the 20% he otherwise would have gotten, just as a consultant instead of a stockholder, would that cure any issue?
Submitted: 6 months ago.
Category: Business Law
Expert:  Asad Rahman replied 6 months ago.

Your bylaws and there should be a state statute regarding the type of entity you have which would answer most of your questions for example the Tennessee LLC act

Expert:  Asad Rahman replied 6 months ago.

IF you tell me what type of entity it is, I can do some research.

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