Can I be fired if I’m an owner?

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Can I be fired if I’m an owner?

Hi, me and a former buddy started a company
together with me agreeing to 45 ownership in
the company, We ended having a falling out
and now he is trying to fire me from the
company. My question is can he do that? I’m
an owner not just an employee.

Asked on October 4, 2016 under Employment Labor Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

He take or make you give up your ownership, or rights as owner (such as to the proportionate share of profits), unless there is and only in accordance with a buy-out agreement. However, as the majority owner, he can unilaterally (on his own) manage the business, which includes making business decisions, deciding who works for the business, and who is paid how much in wages, salaries, benefits, etc. So he can fire from doing work for, having a role in running, or getting a salary/pay from the business, and reduce you to a passive investor or owner.


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