partner wanting out of sub s corp

[romrocks2]

we have a small sub s corp with 4 equal partners, one of which wants out of the business, which is about 3 years old, we, the 3 partners do not want to buy out, this partner, so she is wanting to sue us for liquidation of assets, the majority wants to remain in business, we are just starting to see some profits, though we havent taken any,as of yet. We owe no outstanding debts. can she do that and what are our rights? This is in the state of Arkansas.

 

[loku]

Unless there is mismanagement or a provision for it in the Articles or ByLaws, a shareholder has no right to sue for liquidation or for the corporation to purchase the shareholder’s stock. So there is little she can do other than sell her shares to a third party.

For the Arkansas Corporations Code, take this link to Title 4 of the Arkansas Code, Business and Commercial Law, then Scroll down to Subtitle 3. Corporations And Associations. http://www.arkleg.state.ar.us/newsdcode/lpext.dll?f=templates&fn=main-h.htm&2.0.