Legal Question in Business Law in Utah

Fire a director or President or Partner

I was reading one of your answers and found this quote ''Generally, a company can fire or limit compensation for low or no performing employees, even if they have ownership.'' We have an S Corp that has 3 equal owners. About 6 months ago one of the owners stopped working and said that he was going to find another job. He said that he was going to declare personal bankruptcy, which he did 2 months later. His BK is not final yet but he still owns a 1/3 or the company and the other 2 of us what him out. What can we do? We also don't want to have to pay him anything since he just left and has not been working with the business. He also wrote and signed on both sides for a loan to the company that we thought was a corporate investment. Now I believe this loan he got from another company is involved in his BK and we are not sure what we can do. Please Help!


Asked on 2/08/09, 2:18 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Fire a director or President or Partner

Without knowing the details there is no way for me to give specific advice. However, you can buy out his interest in the corporation. His interest is 1/3 in the net value of the corporation. There are different ways to calculate the value. You may call for a free consultation.

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Answered on 2/09/09, 11:28 am


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