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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116709
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am one of three owners of an s corporation. The shares are

Customer Question

I am one of three owners of an s corporation. The shares are broken down 40-40-20. I own 40. My other business partner who owns 40, has locked me out of our shop, closed the bank account and moved the money, he took me out of all business daily operations such as email, phone, and access to our quickbooks, even my remote access. He plans to shut the business down. what are my rights? what can I do to get back into my own business?
Submitted: 2 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
He cannot just close down the business as he is not a majority owner unless you have some type of shareholder agreement allowing him to do so. Unfortunately, you would have to file a shareholder suit against him on behalf of the corporation for him acting "ultra vires" outside of the scope of his power in shutting out an equal shareholder and trying to close the company without a vote of the owners.
You are going to end up having to sue in court if he will not respond and negotiate and rethink this action.