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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Employment Law
Satisfied Customers: 41221
Experience:  I provide employment and discrimination law advice in my own practice.
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i am co-owner of a corp. the other owner decided to resign

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i am co-owner of a corp. the other owner decided to resign from her position as a director of the child care centers that we own together. she now wants her daughter to take her place in the child care business but i do not want that. i still work in the business and should be able to choose who i want to be employed there.
Thank you for your question. Please permit me to assist you with your concerns.

If I may ask, do you have an agreement in place, such as articles of operation which defines each role of each partner? Are you 50.50 partners? Is anyone listed as a managerial partner?
Customer: replied 3 years ago.


we are 50/50 and no one is listed as managerial partner nor do we have an agreement in place

Thank you for your follow-up, Abby.

What you are describing is a situation where essentially both partners have equal rights to make a decision. She can request (and potentially hire someone) as she is 50% partner herself. Your best defense is that she resigned, which means she is no longer an officer of the business, she cannot make decisions, but you as someone who is still running the operations, can make such decisions. Point that out to her and state that in this case your right overweighs hers simply because you are still involved in the 'day-to-day'. It would be a bit of a bluff since your rights happen to be exactly equal, but it is the best argument you have at this time.

Good luck.

Customer: replied 3 years ago.


you are telling me she can put anyone she wants in her position even if they are not qualified

Abby,

That is correct as she is part-owner such as yourself. If she puts someone unqualified you could in theory (and in reality) later consider filing suit against her for losses to the business and potentially for violating her fiduciary duty owed to both the owners and the business as well. But as part owner she can hire and fire whomever she wishes, provided she does so legally.

Good luck.

Customer: replied 3 years ago.

i am the other owner, so i have no say in the hiring and firing of employees. her daughter would become an employee of mine too. so what if i fired her or can i do that?

Abby,

You have exactly the same rights, you and the other owner. Because your business has no articles of operation or rules in place, your rights are exactly identical. You have the same right to hire and fire as she does. But my point is she still retained her right to hire and fire, same as you, so if she wants to hire someone against your wishes, as 50% owner she can do so. You can most definitely fire her, and refuse to let her work, and that likewise will be permitted.

Good luck.

Customer: replied 3 years ago.

thank you

Abby,

You are most welcome. If satisfied please do not forget to positively rate my answers to you so that I may obtain credit for my work. Thank you.
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