What does a corporation do when one partner moves away?

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What does a corporation do when one partner moves away?

Our corporation is 600k in business debt. Secured and unsecured. It may begin to make money again this fall. The partner is moving several states away in 2 months and says that we can have a virtual company. If it begins to make money, it will be because it is selling product. Product which needs to be produced. My husband would be over operations. The partner is “opinionated” and strong willed. He suffers from depression and isn’t always at work, even here. This was not in the original plan. Can he do this?

Asked on June 22, 2011 under Business Law, Minnesota

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You have a very tricky situation here.  This is not something that you should be playing around with and you need to seek help from an attorney in your area as to advice  You need to bring with you the partnership agreement and any other operating agreements that you have in place.  The paperwork needs to be reviewed before anyone can give you any advice or guidance on how to proceed.  If he is breaching the agreement you need to discuss your options and remedies both under the agreement and the law.  This is not the forum to ask these questions.  It would not be fair to you. Get help.  Good luck.


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