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Can majority stakeholder in a company force a loan on other partners?

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fstep2

Member
What is the name of your state (only U.S. law)? NY

If the majority 51%+ stakeholder decides he wants to take out a loan for the business are all other partners responsible for repayment? As in can he force the debt on the other partners?
 


latigo

Senior Member
What is the name of your state (only U.S. law)? NY

If the majority 51%+ stakeholder (?) decides he wants to take out a loan for the business are all other partners responsible for repayment? As in can he force the debt on the other partners?
For you much needed edification a "stakeholder" is defined as a disinterested party with whom each of those who make a wager deposit the money wagered.

Now if you are genuinely interested in learning something regarding the liabilities of business associates for the debts of the business and their ability to unilaterally incur the same and expect meaningful information you must first describe the nature and structure of the business enterprise. But your use of the word "stakeholder" isn't encouraging.
 

LdiJ

Senior Member
For you much needed edification a "stakeholder" is defined as a disinterested party with whom each of those who make a wager deposit the money wagered.

Now if you are genuinely interested in learning something regarding the liabilities of business associates for the debts of the business and their ability to unilaterally incur the same and expect meaningful information you must first describe the nature and structure of the business enterprise. But your use of the word "stakeholder" isn't encouraging.
Bottom line...you need to be asking this question of someone who can actually review all of the partnership documents...a local attorney.

However, in regards to how credit normally works...

A partnership is a separate legal entity. Someone with a controlling interest in a partnership (ie a 51% interest) could possibly encumber the partnership with a debt against the will of the other partners. However, that would assume that the actual partnership entity was credit worthy on its own...or that the partner was loaning the money to the partnership himself/herself. A controlling partner could not make the other partners individually liable for the debt unless they personally signed on to guarantee the debt...with some exceptions depending on how the partnership agreement was written...but they would be very odd exceptions.

However, the partner encumbering the partnership could certainly cause the other partners to receive less income from the partnership due to the need to service the debt.

You really need to consult a local attorney where you can lay everything out for review.
 

quincy

Senior Member
I think you might mean "shareholder" or "stockholder," fstep2.

A majority shareholder/stockholder is one who owns or controls more than 50% of the stock of a corporation - although control can be maintained with less than 50% if the rest of the stock is widely held by others.

But, whatever you mean by "stakeholder," it would be smart for you to sit down with an attorney in your area if this is a real concern of yours.
 

LeeHarveyBlotto

Senior Member
For you much needed edification a "stakeholder" is defined as a disinterested party with whom each of those who make a wager deposit the money wagered.

stakeholder

[steyk-hohl-der]

noun
1.
the holder of the stakes of a wager.
2.
a person or group that has an investment, share, or interest in something, as a business or industry.
3.
Law. a person holding money or property to which two or more persons make rival claims.
 

quincy

Senior Member
As long as legal definitions are being provided, here is the legal definition of shareholder or stockholder (which is similar to stakeholder, definition number 2 provided by LHB):

"One who owns or holds a share or shares in a company, especially a corporation."
 

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