This is not the type of question for which you want a quick answer to save a quarter. The whole situation including your interests and the company need to be assessed. I handle corporate and securities litigation, and you are welcome to call me for a free consult.

Best,

Daniel Bakondi, Esq.

danielbakondi@yahoo.com

415-450-0424

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Well, here's a quick answer that might give you at least some help.

The California Corporations Code gives all shareholders certain rights. These include the right to receive notice of the corporation's annual meeting (Corps. Code section 600, 601), and to participate and vote for the directors (700, 708). Assuming this corporation has at least two shareholders, it must have at least two directors (Corps. Code 212), presumably one of whom is the person you refer to as the owner. Who is the other?

Also, shareholders have the right to inspect the company's bylaws (Corps. Code 213) and books and records (Corps. Code 1600, 1601(a), et seq.). Ask to see the secretary's shareholder register to insure that your name is on it, and that it specifies the number of shares owned and held by you, and by all others.

The percentage you own may be more important than just being a holder. You need to have that specified in your agreement. Once you are a minority shareholder, your bundle of rights includes a fiduciary duty by the company and its controlling shareholder(s) to avoid diluting your interest by watering the stock or otherwise without the company getting value in return.

Further, I don't believe a brokerage account would help you a bit. Brokers can't do transactions in private companies.

Feel free to contact me directly for further discussion, at no obligation.