Legal Question in Business Law in Texas

Closing of a business

I own 49% of a business the other owener ownes 51%.

I work so I get paid ( $ 9.50 per hour ) the other

owner does not work so does not get paid .

We are not making a profet so the 51% owner is going

to close the store , can he do that , I lose a $ 40,000.00

investment.


Asked on 11/10/03, 1:48 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Closing of a business

It all depends upon whether you have a general partnership or some other business entity. And how the books are kept.

If the business is being dissolved, then the debits and credits have to be allocated between the owners unless it's a corporation or an LLC.

Do you want to keep the business open? Can you buy out the other party?

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Answered on 11/10/03, 2:11 pm
Charles White Charles G. White

Re: Closing of a business

You say that you are not making a profit, and your wages are not what ordinarily be considered a gold mine sweetheart deal. If so, the basic laws of economics mean that ultimately your investment will be worth -0-. If the intent is to liquidate, then you should get your 49% of what is left after the bills are paid and the company assets are liquidated (or +- any adjustment for capital accounts if a partnership). Of course, this may vary by your governing instruments, and if this is a corporation, it may require a higher percentage vote to liquidate, howver, a simple majority probably is all that is required to close a non-profitable business.

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Answered on 11/10/03, 2:22 pm


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