Legal Question in Business Law in Georgia

Brotherinlaw owns 55% and husband owns 45% of business- brotherinlaw to fire husband for no reason other than he's mad....they own a sub business as 50/50 - can my husband withdraw 50% of bank account and open new account and set aside funds so brother cannot take whole account since he feels he is the only one with authority since he owns 55% of main business - they also own 50/50 land business sits on and other property together as 50/50.....trying to plan for no paycheck for a while til husband can settle dispute.


Asked on 7/14/11, 5:26 pm

3 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Hopefully the two did not do something foolish and form this business without a lawyer. If they did, both people will likely have to go to court and spend enormous legal fees to untangle things.

If they did things right and used a lawyer, their paperwork should contain the answer as to (1) if one party even can fire the other, and (2) what happens when that happens. In that case you get a lawyer, probably spend a lot less, and correctly dissolve the business relationship.

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Answered on 7/14/11, 5:36 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

It depends on the internal documentation of the company. If there is none, the applicable default rules will apply, the specific ones depend on what type of entity it is. Either way, I doubt the company can survive.

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Answered on 7/14/11, 6:25 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I agree with the other attorney answers and only add the following. When you say "owns," what kind of ownership interest are you referring to? A corporation, LLC, partnership or ? The type of entity will dictate which type of default rules apply if there is no internal documentation that deals with these issues. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 7/15/11, 7:03 am


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