Legal Question in Business Law in Virginia

I own a small S corporation. A few years ago I offered a co worker half of my company as part of a partnership agreement. No contracts were signed, we had a few email exchanges about the terms. I finally wrote him an email offer with the terms he wanted. He never replied to that. However, we moved forward as if we were both partners. I split the company profit evenly between the two of us and reported to the IRS that we were both 50/50 owners. Shortly after we started working together one of or projects went bad and we were at risk of getting sued. I offered to formalize our agreement by signing over the shares of stock that would represent his half of the ownership. He declined my offer. Things have improved, we are not getting sued and we are profitable. However, they are not great. My question is, who owns my company?


Asked on 7/15/10, 4:17 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

Any attorney will say it's not possible to say without reviewing all documents, correspondence, etc. It seems like your ownership went to 50% based on what you say. Consult with a business attorney in your area for specifics.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 7/16/10, 6:50 am


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