Legal Question in Business Law in Florida

Shareholder control

I started a corp. this year, provided all capital, equipment, ect., but brought in someone to help with the field end. I gave him the position of VP and gave him 30 shares. I am Pres., sec., treas. I am going to have to fire him this month over several problems, but I wonder what rights do the shares give him. I have the other 70 shares.

Thanks,


Asked on 7/16/01, 11:15 am

2 Answers from Attorneys
Peter Gonzalez Sanchez-Medina, Gonzalez, Quesada, Lage, Crespo, Gomez & MachadoLLP

Re: Shareholder control

Hopefully you had a lawyer draft a shareholder's agreement that gives you the right to take back the 30 shares. The employee will have to endorse the back of the stock certificates to transfer the shares to you or to the corporation. Otherwise, you may have a problem. Your employee appears to also be part owner of the corporation that employs him. If the employee wants to, he can make your life problematic. Seek the advice of counsel immediately and good luck.

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Answered on 7/16/01, 1:07 pm
Randall Reder Randall O. Reder, P.A.

Re: Shareholder control

A shareholder has the right to receive a pro rata

portion of dividends. However, there is no requirement

to give dividends. A minority shareholder also

has other rights that could effectively destroy a

small business. I suggest you seek the advice of

counsel.

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Answered on 7/19/01, 2:41 pm


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