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silent partner?

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beachflo

Guest
North Carolina; 3 equal shareholders of an incorporated business in which the relationship has gone bad. I was te store manager until late July when I quit to seek employment that could pay me a wage. I have not been active in the business since quiting as manager other than to review the books each month. The board just held a meeting that I attended and I have been voted off the board. I have requested the shareholders buy my shares but likely they will not.

Where does this leave me? Am I now a silent partner and if so, what does that really mean? Am I obligated financially for further investments if the business is not paying for itself? :confused: Thanks!
 


L

loku

Guest
WHERE DOES THIS LEAVE ME?
From what you say, it leaves you holding stock that is currently worthless to you. (If the business starts to make a profit, you could have some dividend rights as a shareholder.) Also, if the business starts making a profit, your shares would be worth something.

AM I NOW A SILENT PARTNER AND IF SO, WHAT DOES THAT REALLY MEAN?
You are not a partner, silent or otherwise, you are a shareholder.
AM I OBLIGATED FINANCIALLY FOR FURTHER INVESTMENTS IF THE BUSINESS IS NOT PAYING FOR ITSELF?

As a shareholder of a corporation, you are not liable for any of the corporate debts, nor do you have an obligation to make further contributions to the corporation; therefore, if you maintained the corporation's legal status properly, and avoided personally guaranteeing the corporation's obligations, your corporation, and not you, would be solely responsible for its own obligations.
 

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