Legal Question in Business Law in Georgia

What power does a shareholder have who has 49% of the shares

I have aquired 49 shares of stock in a company, the other shareholder has 51. Conflict has arose and I wish to get out. I offered the other shareholder to buy me out but he wants the shares for nothing and has threatned he can move the company's customers to another company that he will startup. What legal rights do I have and can he do that by law?


Asked on 3/02/06, 7:56 pm

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: What power does a shareholder have who has 49% of the shares

If you don't have a buy/sell agreement and/or other documents that spell out what happens in this situation, you are at a disadvantage. For the short term, if it cannot be settled and the other person follows through on threats to take customers, you can seek a temporary restraining order against him based on the alleged breach of fiduciaries to the corporation and/or you as a minority shareholder. You definitely need to see a corporate litigation attorney for that, and it needs to be very quickly after you find out it is happening. What you can't do is force the other person to keep working there, so depending on the situation, it may or may not be worth a fight.

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Answered on 3/02/06, 8:24 pm
Jon Gottlieb Flynn & Gottlieb, P.A.

Re: What power does a shareholder have who has 49% of the shares

If the 51% owner is also an officer or director, he cannot "move" the business on his own.

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Answered on 3/02/06, 8:41 pm


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