Legal Question in Business Law in Florida

i own 25% of a corporation along with 3 other partners who own 25% each. one of my partners wants to sell me his shares, my question is if i own 50% of the company and the other two own 25% a piece does that make me the president or ceo of the company? and do all decisions have to go through me or they will be void? how is the shares transaction done ? with just a notary stamp? in a corporation can a partner sell his shares to anyone with a majority vote?


Asked on 6/02/10, 6:24 am

2 Answers from Attorneys
Leon Ferraez Ferraez, LLC

I only wish it were that simple. First question: You don't become CEO or President just because you own a majority of the shares. Second question: Depending on how you are structured, it is not necessary that all decisions go through you (but they can). Third question: The transaction might be a simple purchase agreement (there are several types of structures). Fourth Question: No, a Notary Public stamp is not sufficient. Fifth question: In a private corporation, I'm assuming that yours is such, there might be a restriction on the sale of stock. But, typically, just because one holds a majority of the stock, that in and of itself does not mean that they get to buy the stock. Feel free to contact us at 813-868-1989 if you need further assistance.

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Answered on 6/02/10, 9:50 am
Kevin B. Murphy Franchise Foundations, APC

As the other attorney answer implies, there are numerous issues that need to be reviewed and discussed, including what your bylaws say about some of your topics. These govern how the corporation operates. So your first step is to get competent advice. Consult with a corporate attorney in your area for specifics.

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

Franchise Attorney

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

Franchise Attorney

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Answered on 6/02/10, 1:06 pm


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