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 3 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.


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 AttorneyPages.com 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.