Legal Question in Business Law in Illinois

My brother owns 50 % of the stock of our s corp . I own 20 % .My brother is now on disability and holds no position within the corp. I am President of the Corp, but my brother keeps saying he has controlling interest by owning 50 %.Is this true?


Asked on 8/26/10, 10:39 am

3 Answers from Attorneys
Thomas Moens Moens Law Offices, Chartered

Well, 50% is not "controlling," but he owns more of the place than you do. You need more than 50% to control a vote. Who has the other 30%?

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Answered on 8/31/10, 10:49 am
Kevin B. Murphy Franchise Foundations, APC

The other attorney is right on point. 50% is not controlling, Even your interest (20%) and the other outstanding interest (30%) do not add up to a controlling interest. Either your interest, or the other 30%, combined with your brother's interest, will result in a controlling vote. Consult with a good business attorney in your area for specific advice.

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

Franchise Attorney

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Answered on 9/01/10, 7:12 am
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

I agree with the other counsel. You need to consult with an attorney. Be sure to bring your corporate record book and all documents concerning the corporation's organization.

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Answered on 9/02/10, 8:17 am


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