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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
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Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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If my husband and I each own 17% of a llc can we have stocks

Resolved Question:

If my husband and I each own 17% of a llc can we have stocks reissued as joint ownership of 34%
Submitted: 6 years ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 6 years ago.
Thank you for your question.

No you cannot--issuing stocks requires that the full board meet and vote on a stock issuance. Since you are a significant minority of the board, you can vote for such an event, but you cannot simply act on it without the 66% of the other shareholders expressing their opinions and positions on this matter.

If you simply meant in terms of ownership of existing stock, that is up to the other shareholders. If they agree, it is a valid claim, but they may contest it by stating that if there is a split or a divorce, it may make the LLC dissolution or sell off needlessly complicated. You may simply want to get proxies set up for each share so that each party may vote and control the shares without the other party--it will essentially do the same thing as joint ownership.

Good luck.

Good luck.

Edited by Dimitry Alexander Kaplun on 8/1/2010 at 5:41 AM EST
Customer: replied 6 years ago.
I am more concerned with joint ownership so me or my husband are not forced to sell if the other one dies. How can that be handled
Expert:  Dimitry K., Esq. replied 6 years ago.
You may then want to create the joint ownership, OR you can place the shares "in trust" under conditions similar to "joint ownership with rights of survivorship"--however getting the shares under both names would be sufficient for that to protect you. An another option may be to place a condition in the articles of operation which states that shares owned by spouses automatically transfer to the surviving spouse upon passing.

Good luck.

Edited by Dimitry Alexander Kaplun on 8/1/2010 at 5:51 AM EST
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