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Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2182
Experience:  Practicing Attorney with 10 years experience
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Business partner who owns 56% of company wants to start

Customer Question

Business partner who owns 56% of company wants to start getting commissions for doing marketing and sales, which has always been his department. He also is wants a salary in addition to our regular distributions. He will be taking money from my distribution pool. Can he do this?
Submitted: 1 year ago.
Category: Business Law
Expert:  Asad Rahman replied 1 year ago.

You can choose to or not to pay salary and commissions but you need to review your operating agreement or by-laws to see how to handle it. You can negotiate where it will come out of i.e. all distributions.

Customer: replied 1 year ago.
That does not tell me much. There are two shareholders and three board members. The partner with 56% is demanding more compensations because he is in sales. I am the other partner at 44%. Our by-laws do not address commissions. First of all, if it comes to a board vote, is he allowed to vote?
Expert:  Asad Rahman replied 1 year ago.

Yes you can vote on it and you should object to him voting as it would be a clear conflict of interest.