Dose a family member have the right to sell the family own business to another family member?
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Dose a family member have the right to sell the family own business to another family member?
my uncle has been running the shop. I have worked here 15 years. He now is wanting to sale it to me. He has 4 brother’s and 1 sister. My dad is the older brother and ran the shop before my uncle. My uncle is now selling me the shop. Dose he have legal rights to sale without family’s approvale?
Asked on April 8, 2017 under Business Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Anyone who owns the business has the right to sell it, subject to the approval of a majority of the owners, if there are more than one. A "family' business is still owned by somone or by several people--it's not that just being in the family gives you a stake in it. If it is an LLC or corporation, there is some person or persons who own the LLC or corporation; if it's a formal partnership, there are partners; if it's completely informal, there are still people who own the tools, inventory, furniture, any trademarks, etc. A sole owner of a business can do anything he likes with it; if there is more than one owner the people who together own a majority of it (e.g if there are 5 equal owners, 3 of them) can make that decision. So whether your uncle is the sole owner, or one of the owners (and if so, how many otheer owners are there, how much does each one own, etc.) will provide the answer to your question.
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