Thank you for submitting your important legal issue to Just Answer. I am pleased to have the opportunity to provide you with an honest and easy to understand answer to your question.
I am an attorney licensed in the State of Texas. The following information is a brief answer to your question. However, if you feel that you need further information or that you have other insights which might help me in providing a better answer, please feel free to write back.
In short, the answer is yes, but with exceptions. First of all, you are not partners with the other person, and there is no partnership. You filed papers showing that you are a corporation with tax treatments under the S Corp exception. Accordingly, to remove the other shareholder from his duties, you will have to buy his shares. Since you both have a 50/50 share of the corporation, you will not be able to force him out of the corporation through a hostile takeover. As a member of a corporation with only two shareholders, you may owe the other shareholder a fiduciary duty
. A fiduciary duty requires that you act openly and that you do nothing to hurt the other persons interests. The only way you can get rid of the person is to offer to buy his shares. You can also look into forcing a shut down of the company. You do this by requiring that the company or the other partner actually buy your shares from you.
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The information provided is general in nature only and should not be construed as legal advice. By using this forum, you acknowledge that no attorney-client relationship has been created between you and Zachary D. Norris or The Norris Law Firm. For complete legal advice and representation
, you should consult with an attorney licensed to practice in your state.