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splitting a corporation

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V

VFB2434

Guest
i'm in tennessee. we have three companies under one business. my dad is pres, i'm vp and my mom is sec/tres. i'm not sure if i'm listed that way on paper that's what's on my business card and what i've been told by my dad. he is separating 2 of the companies into another name without my name on it and plans to give another employee 49% of its stock in 5 years. i've worked 24 years building all 3 companies and have not received any stock. been promised stock but never received it. my dad has 51% and my mom has 49% of the present company stock. do me or my mom have any legal rights to block this deal?
 


L

loku

Guest
As majority shareholder, you father probably has the power to do what he is planning to do. There is some chance however, that if he does not proceed correctly with the plan, he could be violating your mother’s rights as a minority shareholder. A local corporation law attorney would have to study the plan to give an opinion on that.

You have another approach: If he promised stock to you in consideration of your working for the company, then the oral promise is probably a valid contract, and you could sue for the stock. If you win, then you and your mother would probably hold the majority of shares. The problem would be in proving that he made the promise.
 

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