Legal Question in Business Law in Minnesota

My partner and I formed an S-corp when we bought a very small bar and grill 15 years ago. I managed and worked the bar for the past 12 years almost exclusively alone. A few years ago we agreed I should be majority shareholder as he only showed up to do repairs and order bar supplies. I managed employees, promotions, entertainment, kitchen, and bartended and cooked. The split is 51/49 with no other shareholders. I have become I’ll and need to step back. He quit his full-time job to take over. If I leave all day to day operations and do not work there at all, can I keep the 51%? What key elements should be in resolution?

Asked on 2/14/22, 7:21 am

1 Answer from Attorneys

Robert Kane Law Offices of Robert D. Kane, Jr.

It is not so easy (actually impossible) to determine what the current situation is and what you hope to accomplish based on only this post. You "agreed [you] should be majority shareholder." Was anything put in writing? Was any consideration given for you to become majority owner? How attentive have you been to documenting corporate records? I have a feeling the corporate docs aren't as comprehensive as they should be. You can't expect (or rely on) a complete response to your issue on a free online Q and A. Please contact an attorney to help you get your corporation back on track.

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Answered on 2/14/22, 3:13 pm

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