donttrustbat
Junior Member
What is the name of your state (only U.S. law)? California
My wife and I are the majority shareholders of a family corporation. We actively manage the day to day affairs of the corporation. There are two other family members that are passive shareholders.
The business was started seven years ago.
One of the passive minority shareholders has become increasingly paranoid and mentally unstable over time. She has broken off many of personal relationships due to her mistrust and perceived concept that the world is out to get her.
Over the past year I have had to deal with a series of five different law firms and a multitude of accounting inquiries in the affairs of the corporation. We are spending a fortune in legal and accounting fees answering paranoid questions and dealing with false accusations.
She is not interested in relinquishing or selling her shares in the corporation, only in impeding our ability to proceed with day to day affairs.
My questions:
Is there any way to get her shares in the care of a more stable individual?
What can I do to protect to protect the other three owners of the corporation, and preserve our assets from being eroded?
Can I force an IRC section 355 spin off to get rid of her?
My wife and I are the majority shareholders of a family corporation. We actively manage the day to day affairs of the corporation. There are two other family members that are passive shareholders.
The business was started seven years ago.
One of the passive minority shareholders has become increasingly paranoid and mentally unstable over time. She has broken off many of personal relationships due to her mistrust and perceived concept that the world is out to get her.
Over the past year I have had to deal with a series of five different law firms and a multitude of accounting inquiries in the affairs of the corporation. We are spending a fortune in legal and accounting fees answering paranoid questions and dealing with false accusations.
She is not interested in relinquishing or selling her shares in the corporation, only in impeding our ability to proceed with day to day affairs.
My questions:
Is there any way to get her shares in the care of a more stable individual?
What can I do to protect to protect the other three owners of the corporation, and preserve our assets from being eroded?
Can I force an IRC section 355 spin off to get rid of her?