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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10648
Experience:  30 years of corporate, litigation and international law
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My husband owns a pizza franchise and he has two daughters,

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My husband owns a pizza franchise and he has two daughters, each of whom owns 4% of the business. My husband owns the rest. He gave them these shares when they were minors. Now that they are adults his corporate parent needs for him to sign updated shareholder papers. The problem is that one of the daughters is a very difficult person who has a very strained relationship with her dad. He is concerned that she may refuse to cooperate and sign these papers which corporate needs. He has only a week to return these papers and he is going to try to get his other daughter to talk to the other one and convince her to sign. It would not surprise me if she refused. He could buy out her share but he is also in the midst of a property settlement with his ex wife who is as much of a bitch as the daughter. They don't have an agreed upon value for the business so there is no way to determine what 4% is worth. If the daughter refuses to sign, what are my husband's other options so a minority stockholder can't gum up the entire company?

bizlaw :

Hello, I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. Why would a minority shareholder need to sign anything? Why must all shareholders sign?


I don't know the answer as to why they have to sign,it's the corporations way they do things. I am suggesting that my husband call corporate,explain the situation and see what they say but they are back east and so we can't call today. We get good advice from this site so that's why I am inquiring.

bizlaw :

There are very few situations in which the consent of all shareholders is required. In most circumstances you cannot force a shareholder to sign anything related to the corporation. What you might want to investigate with what you describe as corporate is if you put the operating company into a wholly owned subsidiary of the existing company, then the board of directors of the parent company would be the shareholder and your husband as controlling shareholder of the parent company could sign as shareholder without any consent required by the minority shareholders. Without knowing more about why the signatures are required, I cannot offer any other options. If I have answered all your questions, please rate my answer excellent as that is how I am compensated. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

Richard - Bizlaw and other Business Law Specialists are ready to help you
Hi I was just following up to see how you made out. If you have any additional questions or I can help on a different topic let me know.