Its corporation i have 49% shareholder he has 51%, if i want to get out the bussiness?
i want to get out from the business , can i get out of it get 49% of the value , lets say he doesnt like it he wants me to stay,, but i want out how that works.
Answers:
Read the corporate documents. Look for a paragraph containing the words "buyout" or "sale of shares".
There's not much law that's going to dictate what happens here. Basically, owning 49% of something isn't much better than owning 1% of it. The articles of incorporation, or charter, or bylaws may (or may not) have a provision that deals with one partner wanting out. Maybe there's a set price, based on book value, or maybe you have to find a third party buyer, at which time the other owner has the option to buy at that price.
Exercise the appraisal right by being compensated for the value of your shares when you wanted to get out of the corporation.
You must look to your Articles and Bylaws concerning transferability of shares.
If you are a Close Corporation, transfer of shares may be restricted, and subject to agreement among all of the shareholders.
I would recommend talking it over with the 51% shareholder, and finding out if he wants to buy you out, either in a lump sum amount, or structured payments.
Otherwise, discuss with him who he would be willing to have as a minority shareholder.
Good luck.
This transaction will be treated same like a partnership. Just like if it was a partnership, you will have to either come to an agreement with the other owner to purchase your 49% from you OR find another buyer who will be willing to purchase your share and become an owner.
Your question lack some important details as what kind of corporation and waht kind of shares are we talking about. but basically you will be paid what the law say those shares are worth. In some cirscusntances you are required to give the other shareholders the first option to buy before offering them in the market
But all will depend on what the leagl status of those shares. Better talk to a corporate lawyer before doing something that might get you into a big sue or maybe some big fines or other legal penalties..
he doesnt have the money to buy you out? then you have to go and dissect the origional agreement....
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