Legal Question in Business Law in Michigan

my farther gave my brother 15% of stock ownership in his business, however my brother thinks he owns the whole company and bullies the rest off family that this is his company when parents pass. how do we put my brother in his place that he only owns 15% of the stock in the company( which to this day, he stills owes company for stock) ?

Asked on 2/04/16, 8:36 am

1 Answer from Attorneys


By following the rules.

First, do everything by the book. Since he has 15% stock, he is entitled to only a 15% vote in the shareholders meeting. Who owns the other 85%. Do you have a voting trust provision in your shareholder agreement. You should have a shareholder agreement irrespective of family ownership. Then ask how come he is claiming "his" company in future. Is there some element of estate planning that provides him those rights. Further, those rights are not vested today when your father is alive - I presume. Finally, this is the time to settle the issue when the current owners are alive. How did your father "give" your brother stake in company - was it a gift or sold stock to your brother pursuant to a promissory note. If he still owes the promissory note, he needs to make payment and if he does not - well take stock back. Make sure there are adequate filings of lien etc on the shares owned by brother if money is still owed and if this was a stock sale. Follow the rules!!

Read more
Answered on 2/04/16, 8:55 am

Related Questions & Answers

More Business Law questions and answers in Michigan