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inkdefined · Jan 27, 2011, 01:19 PM

I own 51% of a company and my husband owns 49%. My husband is actively attempting to cut me out of the company. He has limited my access to everything that has anything to do with the business... i.e. money, banking decisions, etc. What rights do I have and/or what steps can I take to ensure protection of my stake in the business?

tickle · Jan 27, 2011, 01:24 PM

Seems to me you have controlling interest at 5l%. Do you have a lawyer to guide you in this. If you are not sure what your husband is doing, then you need one badly.

Tick

Stringer · Jan 27, 2011, 06:29 PM

IF everything is indeed legal and you are incorporated in your state then you own controlling share.

Tick's advice is good see an attorney yourself right away. Explain your situation and listen to their advice. When someone owns less than 50% in any partnership of two then that person in essence is an employee. That In my opinion, makes your husband your employee.

Stringer

ScottGem · Jan 27, 2011, 07:06 PM

There is a lot more here than just who owns a controlling interest. If your husband is the chief executive or operating officer, then he is entitled to make decisions about running the business. Unless you hold a position as an officer of the company you may not be entitled to make everyday decisions.

What your controlling interest gets you is control of the board of directors (assuming this is an incorporated entity). So, what you would need to do is call a meeting of the board and use your votes to oust your husband from his position.

You really should consult a corporate attorney to look over the articles of incorporation and help you understand your rights.

ballengerb1 · Jan 27, 2011, 07:12 PM

Scott makes an excellent point, hubby may control the company but you appear control the board. I'd tell him he is in jepardy of losing his job unless he gives you the access you require.

Fr_Chuck · Jan 27, 2011, 07:37 PM

But in general, you can as majority owner, take complete control of the company, remove hubby from any management role.

ScottGem · Jan 28, 2011, 04:37 AM

Originally Posted by Fr_Chuck

But in general, you can as majority owner, take complete control of the company, remove hubby from any mangement role.

This is true, but not as easily said as done. The corporation may have rules about board meetings and actions. The OP may not be able to just declare herself in control. It may require a stockholder's meeting and vote. Something that may not be able to be scheduled at the drop of a hat.