Legal Question in Business Law in Illinois
My brother owns 50 % of the stock of our s corp . I own 20 % .My brother is now on disability and holds no position within the corp. I am President of the Corp, but my brother keeps saying he has controlling interest by owning 50 %.Is this true?
3 Answers from Attorneys
Well, 50% is not "controlling," but he owns more of the place than you do. You need more than 50% to control a vote. Who has the other 30%?
The other attorney is right on point. 50% is not controlling, Even your interest (20%) and the other outstanding interest (30%) do not add up to a controlling interest. Either your interest, or the other 30%, combined with your brother's interest, will result in a controlling vote. Consult with a good business attorney in your area for specific advice.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
I agree with the other counsel. You need to consult with an attorney. Be sure to bring your corporate record book and all documents concerning the corporation's organization.
Related Questions & Answers
-
In law, what is a "scrivener's" error. If the scrivener transposed numbers... Asked 8/19/10, 3:12 pm in United States Illinois Business Law
-
I have a signed contract with a customer. If I email the customer a change order... Asked 8/12/10, 6:21 am in United States Illinois Business Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
