Can my business partner sell our building without me?

My business partner and I had a building owner financed to run a business out of. After a couple of years he took the business over since he was the majority shareholder and forced me out. He never kept me informed about anything to do with the business or the building. The business eventually closed and he continued to rent out the building to another business that operated out of it. Now, a couple years later he has sold the building to the business that was renting it. He will not inform me about anything to do with the business or building. I also have the man that owner financed the building harassing me about signing paperwork to transfer the title of the building to the

Asked on April 8, 2016 under Business Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If the business owned the building (i.e. the business was an LLC or corporation--presumably a corporation, since you use the term "shareholder"--and the LLC or corporation was the owner) and he is the majority shareholder, then yes, he can make the decision to sell the building without you; the majority shareholder can direct the sale, use, disposition, etc. of corporate assets. If you remain a minority shareholder, if the proceeds of the sale are distributed to the shareholders, you must get the appropriate share.
If the building was owned by you and him as co-owners in your own names, then he cannot sell it without you: one co-owner may not unilaterally (on his own) sue jointly owned property.
It would be a good idea for you to consult with an attorney to make sure your interests are fully protected here.


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