As a business partner am I legally owed a percentage of money if my partner sells our business?

I’m a partner in a corporation with my
dad and he sold the corporation. I
didn’t get my full part of the money. Is
this illegal?

Asked on July 17, 2017 under Business Law, Oklahoma


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

In the absence of some agreement to the contrary (since people can voluntary agree to receive less or some other amount) among you and your partner, you were entitled to a share of the sale proceeds equal to your percentage or share of ownership: e.g. if you own 50% of the corporation's stock or shares, you would generally get 50% of the proceeds. If you did not get the appropriate share of the proceeds, you could sue your partner for the money, such as for breach of fiduciary duty: violating the legal obligations owed by one partner or business owner to another.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.