If I’m a shareholder of a company but never got involved in any of it’s operations and someone is suing the company, is it good idea for me withdraw my name as partner?

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If I’m a shareholder of a company but never got involved in any of it’s operations and someone is suing the company, is it good idea for me withdraw my name as partner?

Asked on February 17, 2015 under Business Law, Virginia

Answers:

Anne Brady / Law Office of Anne Brady

Answered 6 years ago | Contributor

Shareholders of a corporations are not personally liable for the debts of the corporations, but partners in a partnership are.  Find out which you are.  If you are, in fact, a partner, there are going to be rules in the partnership agreement for withdrawing.  For example, there may be a provision by which the remaining partners, or one of them, may be able to buy you out.  It is this personal liability of partners that leads people to choose to form an LLC rather than a partnership.


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