If I’m the COO of a company and own 18.5% and choose for personal reasons to resign my position, can I be forced to sell my ownership?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I’m the COO of a company and own 18.5% and choose for personal reasons to resign my position, can I be forced to sell my ownership?

My subscription agreement with my partner says that I received my 18.5% in exchange for my cash investment, and that I can only sell my ownership back to the company, not to another individual. I wish to keep the investment but cannot continue with the day to day operations.

Asked on September 27, 2014 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

No, not unless there was something in the subscription or other agreement stating that you would lose your ownership interest if you ceased working at the company; given what you write (e.g. that you received the 18.5% in exchange for a cash investment), that should not be the case here.


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