Legal Question in Business Law in Georgia

My husband is a vice-president of an S-corp. He invested some money to start the company and has been paid back. After 4 years, the company is still not making any money and the "president" is looking at dumping more money into it. My husband just wants out. He owns 45% of the company but does not want to be liable for any debt or tax issues. How can he leave the company and sever all ties to it?


Asked on 11/22/10, 5:51 pm

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

You haven't told us what the corporate by laws say about this or if he has a buy-sell agreement. Since you haven't told us that no one here can respond. Regardless, he needs to see an attorney to review those documents to determine what he can (and cannot) do.

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Answered on 11/27/10, 6:12 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Generally, owners of a company are not liable for the debts and obligations of the company itself. Of course, one large exception is signing a personal guarantee. In addition, unless there is an agreement in place for being bought out or there is a permissible buyer, a shareholder cannot force the other owners to buy him buy out. Have a local business attorney review the company documents.

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Answered on 11/28/10, 8:35 am


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