What is the name of your state (only U.S. law)? NC
I am a 1/5th owner of a family company passed down from my mother. After we acquired the company, we became an S corporation about 12 years ago. At the present time, three of the owners are in a totally different financial situation than the other two. Our Bylaws state majority rules but lately the three have wanted to vote on what two of the owners consider risky investments. At this time, borrowing money for these investments requires personal guarantees which the two of us have refused to sign. It is my believe that S Corporations should require unanimous vote if one is to be personally responsible for the debt. Is it common practice for S corporation Bylaws to be changed to a unanimous vote in this instance & if so do you have any suggestions for how to go about this. I appreciate any help you can give me.
I am a 1/5th owner of a family company passed down from my mother. After we acquired the company, we became an S corporation about 12 years ago. At the present time, three of the owners are in a totally different financial situation than the other two. Our Bylaws state majority rules but lately the three have wanted to vote on what two of the owners consider risky investments. At this time, borrowing money for these investments requires personal guarantees which the two of us have refused to sign. It is my believe that S Corporations should require unanimous vote if one is to be personally responsible for the debt. Is it common practice for S corporation Bylaws to be changed to a unanimous vote in this instance & if so do you have any suggestions for how to go about this. I appreciate any help you can give me.