What are my rights if I have a 20% partnership in a business?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What are my rights if I have a 20% partnership in a business?
Asked on May 5, 2015 under Business Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Your only real rights are that the majority owner(s) can't take money from the company for their own sole benefit(s) (if there are any distributions, should get your 20% share) and can't otherwise steal from or defraud the company. If you suspect they are cheating you out of your 20% share of any profits or proceeds, you could file a legal action to get a court order and/or compensation. However, you don't have any right to control the management of the business if you are a minority owner: the majority owner(s) can make all management decisions without your agreement or consent, or without even consulting with you, since the majority owner(s) control the business.
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.