I am in business with a partner who just past away, who I had a contract with which stated his daughters working for the business are entitled to a salary and my partner and myself split the profits each year based on sales. Without my knowledge in 2010, my partner gave the business to his daughters and he stopped giving the them the additional salary the contract said they should receive. Their father has been coming into the office and what they'd like to call "working" without a salary since he transferred the business to them. Now, the daughters have realized they have not received that money and are now trying to collect. Can you please tell me are they entitled to this money?
Answered on: 5/30/13, 11:03 pm by Roman Fichman Esq.
This is a fairly complicated matter because the corporation's documents need to be reviewed (the bylaws and any additional agreements you had with your late partner), then there is the issue of the estate and the rights it has in the business finally there is the issue of the daughters who may or may not have been employees (the late partner's promise to pay them a salary could be construed as a personal promise and not an obligation of the company)
I realize you were looking for a quick definitive answer, but without carefully reviewing these docs it is difficult to render an opinion.
Feel to contact my office at your earliest convenience to see if I can help you.
Roman R. Fichman, Esq.
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