Legal Question in Business Law in Utah

My husband is a 40% shareholder in the company that he and his business partner started 8 plus years ago. His business partner now wants to cut my husband out if the business. He has a document that states my husband basically gets nothing but his own tools. What is my husband entitled to? Can his business partner cut him out of the company? Does my husband have a right to any of the business's assets?


Asked on 5/01/14, 8:58 am

1 Answer from Attorneys
Randy Lish Randy M. Lish, Attorney at Law

It depends on several factors. What kind of business is it? Does your husband have an operating agreement or bylaws? Basically, if he owns 40%, he should get back 40% of the current assets. If what he contributed was really a loan, then he may be limited in what he can get. If he really owns 40%, I don't see how he can be limited to just getting his tools back, and having to donate everything he put into the business. There may be a claim for unjust enrichment or breach of contract against the other partner. I need more information to give a more complete answer.

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Answered on 5/01/14, 10:08 am


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