What to do if my husband and I are 50/50 co owners of an S-corp and are dissatisfied with the decisions of our partners related to management of the company?

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What to do if my husband and I are 50/50 co owners of an S-corp and are dissatisfied with the decisions of our partners related to management of the company?

I am interested in learning about a partition action in order to be independent of them, either by split or sell. However, all I can find in my research is related to physical property. Any direction would be greatly appreciated.

Asked on June 2, 2013 under Business Law, Texas

Answers:

Nathan Wagner / Law Office of Nathan Wagner

Answered 8 years ago | Contributor

I am not aware of any way to force the other shareholders out of the corporation or force the dissolution of the corporation. You are correct that "partition actions" apply only to real estate. Look at your Articles of Incorporation and By-laws. They may provide you with a way to seize control of the corporation. If you control it, you can dissolve it or run it the way you like. Otherwise, you will simply have to negotiate with the other shareholders until you agree on how to manage the company or how to divide its assets and shut it down. 


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