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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I am the owner of LLC and 50% shareholder, I have a partner

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I am the owner of LLC and 50% shareholder, I have a partner who is secretary and 50% shareholder. It is not working out and I want to fire the secretary and buy out her shares. Can I do this since I am the president, owner and incorporator of the LLC?
Thank you for the post, I am happy to assist you by answering your questions. Regrettably not, because you own equal interests in the LLC you have to reach an agreement for a buy-out or in the alternative submit the matter to binding arbitration (assuming your operating agreement addresses how to resolve disputes and prescribes this method as standard operating agreements do). Please let me know if you have any follow up questions.
Customer: replied 4 years ago.
I have been trying for two days to try and reply to the expert but unable to do so, I do not have a practice agreement, we do not have a disssolution agreement. As president and owner of corporation am I able to quit, dissolve practice and divide assets 50/50 with other 50% shareholder
Good morning James, I apologize for the difficulty you had in responding, I will let customer service know of this glitch. Regrettably you are not able to take the unilateral action of dissolving the business without your partner's consent as you do not own the majority share of the business, because it is equally divided/split neither partner can take this action. Therefore you have the option of negotiating a buy out of your partner's shares or a sale of your shares but just as she cannot force you out, you cannot force her out. If you and she cannot agree on a purchase price, then you have the option of submitting the dispute to arbitration or litigation to force a buyout or dissolution. Please let me know if you need additional guidance or have any follow up questions.
Customer: replied 4 years ago.
how about if I just quit and start a new corporation apart from her, i will not use any of the existing corportations assets or equipment or charts nor will I solicit any of the employees or patients from practice.
You are free to start a new corporation, provided that you did not sign a non-compete agreement with the current corporation that prohibits you from competing with it. If there is no such restrictive covenant in place you are free to start the new corporation.
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