Corporation dissolution / partner firing question

[vovchick2]

Hey everyone so here is my question:
I was an employee and a partner of a company for almost 9 years. I was a minority partner about 10-12%. Last week I was fired as an employee.

I am supposed to have a meeting with owner of the company and would like to come with solid facts and legal proof that he has to buy me out or pay me out (not sure what it is). Can someone show me where I can find verbiage or the law that says this is what has to happen?
My % was a handshake deal (now I know its not smart) but I really don’t think he will go back on his word. I do know that he is a smart guy and if I show him I know what the law is and how it should work he will do the right thing. If not I guess I got nothing.

 

[tranquility]

Hey everyone so here is my question:
I was an employee and a partner of a company for almost 9 years. I was a minority partner about 10-12%. Last week I was fired as an employee.

I am supposed to have a meeting with owner of the company and would like to come with solid facts and legal proof that he has to buy me out or pay me out (not sure what it is). Can someone show me where I can find verbiage or the law that says this is what has to happen?
My % was a handshake deal (now I know its not smart) but I really don’t think he will go back on his word. I do know that he is a smart guy and if I show him I know what the law is and how it should work he will do the right thing. If not I guess I got nothing.

He can fire you without a problem. He cannot just remove you as a partner without more. The more would depend on your partnership agreement. If no written agreement, you'd need to look up the partnership codes for whatever state you're in.

 

[vovchick2]

thanks

Thank you how do I look up codes for PA?

 

[Silverplum]

Thank you how do I look up codes for PA?

Google. Bing. Whatever search engine you choose.

I typed in "PA legal code partnership" and got bunches of info.

 

[Zigner]

OP also refers to this as a corporation.

 

[Silverplum]

OP also refers to this as a corporation.

"PA legal code partnership corporation," then.

 

[tranquility]

OP also refers to this as a corporation.

Good point. What is it OP?

(Although I don't think you can have a corp without a writing and a filing.)

If a partnership,
http://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/15/00.083..HTM
(I'd focus on 601)

 

[vovchick2]

Correction

Ok here is a correction. the company is an S corp
he is the legal owner receiving K1 and shows it as his corporation
we had an agreement that stipulated that I work for Salary and % of profits as a partner not as a commission agents.

 

[Zigner]

Ok here is a correction. the company is an S corp
he is the legal owner receiving K1 and shows it as his corporation
we had an agreement that stipulated that I work for Salary and % of profits as a partner not as a commission agents.

I believe that you are not legally entitled to anything now that you are no longer an employee.

 

[tranquility]

Ok here is a correction. the company is an S corp
he is the legal owner receiving K1 and shows it as his corporation
we had an agreement that stipulated that I work for Salary and % of profits as a partner not as a commission agents.

What do you mean by "agreement"? What did it say? An agreement might be enforceable, but you're wasting your time looking for legal rights to a handshake agreement you purport to say you can't be fired. You have no ownership percentage unless it is in writing and you are not a "partner" in an scorp.

See an attorney, but you have nothing to be bought out from. Maybe, I say again, maybe, you have some enforceable agreement of employment. What it says or what it is I have no idea.