Marty and Ted Talk Tax Podcast Ep. 2
Media Business Attorney Discusses Majority Shareholder Splitting from Business Partner
As a experienced Media Business Attorney, I get questions all the time from clients about majority shareholder wanting to break up with their business partner. If I’m the majority owner of a company, I have control and control is key. It means that I have voting privileges either by way of a stock corporation agreement, a membership agreement, or a partnership agreement previously agreed with my other partner. That says this is the way we’re going to run this company and this is the manner in which we’re going to run it. It’s usually done by the majority vote. It can be set up by corporation officers and directors. The individual who controls the majority controls the future of the company.
At that point in time the individual who has control, if there’s an agreement in place he can implement the agreement and say I have XYZ percentage of control and you do not. We’ve decided that now that your shares are going to be valued and you’re going to be exiting from the company. At that point in time, the issue becomes how do I value the shares and then move into the valuation process. This could be by the way of the agreement we’ve entered into during the course of the year or it could be by a third party appraisal either through the value of the company by an appraiser agreement or some other formula that’s set forth in our agreements.
If you have any questions about majority shareholders breaking up with business partners, please contact our Media Business Attorneys for a free case evaluation.
This educational blog was brought to you by experienced Media Business Attorney Walter J. Timby. Our law firm proudly represents clients throughout Media, as well as Pennsylvania, the greater Philadelphia area, Delaware and New Jersey.
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