Legal Question in Business Law in Utah

Is there any way a company can fight an owner and board of directors that want to cash a corporation out and close it. The company is making good money but the new owner seems to have bought it for a cash out. He isn't paying bills, just taking the money.

Asked on 7/11/13, 1:50 pm

1 Answer from Attorneys

Randy Lish Randy M. Lish, Attorney at Law

Who do you by "the company?" Usually, the Board of Directors will oppose the owner, or vice versa. Here, it seems that there is nobody to oppose the action. I am assuming that you are a minor shareholder. The only way to stop the sale of the business is to buy enough shares so that you have enough votes to stop the sale. What do the bylaws say about the conduct of the majority shareholder? I will also need to know know this to give a good answer. A review of the bylaws may give an answer on what the owner can do, and if there is a way to stop him.

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Answered on 7/11/13, 2:54 pm

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