Legal Question in Business Law in Hawaii

S-Corp Buy-out

My husband and his best friend formed an S-Corp several years ago. The two of them were the only share holders (500 shares each). The friend has decided to leave the company. He has been compensated for all profits incurred while he was still working. He has signed his shares over to my husband and signed a receipt for $5.00 for the sale of his shares. (He can buy them back if he wants to in the future.) What else, if anything, do we need to do to ensure that he is no longer responsible for anything relating to the S-Corp?


Asked on 10/18/06, 5:58 pm

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: S-Corp Buy-out

There is no real way to answer your question in this forum and without looking at the corporate documents that address this issue. I would recommend having a local business attorney review the corporate minute book and make sure that the transfer is done properly. There can be many pitfalls when transferring ownership of a company.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 10/19/06, 11:36 am


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