How can I remove a business partner from an S-corp?
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How can I remove a business partner from an S-corp?
The partner in question holds 51% and I hold 49% of the company. He lives in Portugal, but on the documents for our business he has always put his address as in Florida. He is irresponsible, and takes almost no responsibility for anything that happens in the company. He forgets to bill clients for the hours he works, but still pays himself from the company. Can I have him removed as a partner due to the fact that he is not living in the United States?
Asked on August 16, 2012 under Business Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
You cannot remove the person who has majority interest in the corporation that you have written about on a whim or because he does not reside in this country. In order to remove him from any control in the corpoartion you have with him as a shareholder, you need to carefully read the bylaws for the entity. Your answer may be there. Otherwise, I suggest that you consult with a business attorney about your problem.
From what you have written, you may need to buy out the interests of the other shareholder or dissolve the corporation.
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