If I own 20% of an S-corp, can the 80% owner sell the business (including my shares) without my consent?
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If I own 20% of an S-corp, can the 80% owner sell the business (including my shares) without my consent?
Asked on October 26, 2014 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Yes, a majority owner can sell a corporation without the consent of minority owners--this is a case of "majority rules." Obviously, you must be properly compensated (e.g. get 20% of the proceeds, after paying off any debts or obligations of the business), but the majority has an absolute right to sell the busines if they choose to, unless there is some written agreement to the contrary.
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