If I’m the COO of a company and own 18.5% and choose for personal reasons to resign my position, can I be forced to sell my ownership?

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If I’m the COO of a company and own 18.5% and choose for personal reasons to resign my position, can I be forced to sell my ownership?

My subscription agreement with my partner says that I received my 18.5% in exchange for my cash investment, and that I can only sell my ownership back to the company, not to another individual. I wish to keep the investment but cannot continue with the day to day operations.

Asked on September 27, 2014 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

No, not unless there was something in the subscription or other agreement stating that you would lose your ownership interest if you ceased working at the company; given what you write (e.g. that you received the 18.5% in exchange for a cash investment), that should not be the case here.


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