Media Business Lawyer Discusses Discusses Business Operations if You Fire Your Partner
As a skilled Media Business Lawyer, clients come to me all the time with questions about operating a company after you fire your business partner. If your partner is not holding up his end, you have a couple of options. The first thing is if it’s a company in which they are receiving a salary and you are in control, you can reduce his salary, you can reduce his benefits, you can reduce his perks such as his car payments, life insurance payments, and expense account that makes his life a little more miserable until you get his attention. As far as particular termination, yes, it can be done with the understanding that you are documenting his conduct. Document why it is you are terminating him, and following your appropriate corporate documentation. You need to eventually get to the point as if he was any other employee, where you are terminating his compensation. Unfortunately, you are not terminating his interest in the company. He still owns the shares, he still has rights to distributions, if any money is to be distributed, but he just doesn’t get a salary because he’s not holding up his weight.
If you’re not in control of the company, then you have a more difficult problem where you are a minority and then the criteria are whether he is violating his duty of loyalty to you or taking money that is inappropriate and then you have to resort to litigation almost to get a response as to keeping him under control.
If you have any questions about operating a company after you fire your business partner, please contact our Media Business Lawyers for a free case evaluation. Let our knowledge work for you.