Can I be given a percentage ownership of a company without signing a contract?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can I be given a percentage ownership of a company without signing a contract?

A family member gave me 5% of a real estate LLC and put my name on the contract, without me signing anything. I’m not sure if I want it, and certainly don’t want to be liable for taxes. Is he able to do this without me agreeing in writing and how do I remove myself if I choose to do so?

Asked on March 30, 2012 under Business Law, New York

Answers:

Steven Fromm / Steven J Fromm & Associates, P.C.

Answered 9 years ago | Contributor

Do not accept delivery of the shares.  Follow up with a written refusal to accept the gift. 

Michael Duffy / Duffy Law, LLC

Answered 9 years ago | Contributor

Hi there,

Just writing it down in a document does not complete the transfer of ownership. You would have to accept the transfer in some form. You can refuse acceptance of the share of the company, either physically or in writing, prior to their delivery. If you don't want the ownership, put it in writing to your family member and that should serve as notice that the transfer was not complete and you do not own the portion of the company.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption