If I own a bar that is incorporated and my partners and I owe $50,000, can they lock me out and shut the doors if I don’t agree to buy them out?

Asked on June 4, 2014 under Business Law, Connecticut


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

No, they cannot due this unless the articles of incorporation or other agreements among the owners specifically allow them to do this. Otherwise, 1) you are an owner, so they cannot deny you access; 2) you are not obligated to buy them them out--if you and your partners cannot decide jointly on what to do, one or another of you can bring a legal action asking the court to order that the business be sold and dissolved and the assets (if any are left after paying debts) be distributed among you. They cannot require you to buy them out without a court order unless there is an agreement specifically requiring you to do so.

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.