How can I remove a business partner from an S-corp?

UPDATED: Aug 16, 2012

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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