1ohiofather
Junior Member
What is the name of your state (only U.S. law)? Ohio
My partner and I each own 50% shares in a S corporation we have set up. We own a pizza shop that includes real estate and we have a bank loan. We both have been running the business for past five years. Things are ok but there is underlaying friction between us.
We do not have an operating agreement. We have been carrying out daily responsibilities as understood.
Our corporation papers state I can not sell my shares with out his consent. I must also give him first offer to purchase, which he is to respond back in 30 days. If no than I can sell to third party.
The problem is he is not going to like it if I sell my shares to someone else. Does he have to accept that person? Can he sue me? He does not want to pay as much as a third party for my portion of the shares.
Also, can I transfer or assign my rights of the corporation to someone else? If I don't want to technically sell my shares?
My partner and I each own 50% shares in a S corporation we have set up. We own a pizza shop that includes real estate and we have a bank loan. We both have been running the business for past five years. Things are ok but there is underlaying friction between us.
We do not have an operating agreement. We have been carrying out daily responsibilities as understood.
Our corporation papers state I can not sell my shares with out his consent. I must also give him first offer to purchase, which he is to respond back in 30 days. If no than I can sell to third party.
The problem is he is not going to like it if I sell my shares to someone else. Does he have to accept that person? Can he sue me? He does not want to pay as much as a third party for my portion of the shares.
Also, can I transfer or assign my rights of the corporation to someone else? If I don't want to technically sell my shares?