What are my rights if I have a 20% partnership in a business?

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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 5 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.


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