Can my brothers kick me off or change our corporation where we are all 1/3 rd owners?

Asked over 1 year ago - Huntington Beach, CA

My 2 brothers and I formed a corporation in Nevada with each of us as equal partners with 33 1/3 shares each. One brother is very verbal abusive to me and the other day I just left because of this. They took me off everything dealing with the business and wrote our website company that I was playing games. They said I quit because i left and therefore not a partner anymore. What Can I do to protect myself and my interest.

Attorney answers (4)

  1. Michael Charles Doland

    Contributor Level 20

    5

    Lawyers agree

    Answered . Your Nevada corporation was probably invalidly formed. Most are. You are not distinguishing between the different rights and duties of shareholders, directors, officers and employees. Depending on the amount at stake (e.g. what you invested and what the company is worth) you may end up needing a business litigator. Many more facts would be needed to answer your "protection" aspect of your question, as in "protect what?"

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  2. Phillip Monroe Smith

    Contributor Level 18

    2

    Lawyers agree

    Answered . When a corporation is formed, you are issued shares of stock in the corporation. Were you issued your stock certificates? You have not indicated this fact. Your certificates are proof that you own the shares in the company, and you have rights if the shares were issued for consideration. You need to consult with a attorney regarding this matter.

    Hope this helps!
    Phillip M. Smith Jr.
    Los Angeles Tax & Business Attorney
    Licensed in the United States Tax Court
    www.culvercitytaxandbusinesslaw.com
    www.corporateattorney.com
    Main: 323-292-4116 ❘ Cell: 562-505-1004

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more
  3. Charles Richard Perry

    Pro

    Contributor Level 16

    2

    Lawyers agree

    Answered . The short answer is that it depends what you mean by "kick you off." They can certainly "join up" together and treat you as a minority shareholder, which means that they may be able to remove you from the board of directors and as an officer, and remove your name from the bank accounts. They cannot deprive you of your ownership interest, however. Writing to your website company may create certain liabilities for them, and your brother have a duty to you to treat you fairly in terms of your ownership interest.

    If this gets any nastier, you will need a lawyer to step in. Beware, however, as the cost of inter-shareholder fights can be extremely expensive and can destroy the corporation, as well as destroy any chance at repairing the family relationship.

  4. Frank A. Natoli

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . Once you enter into legal relationships things do not work the same way as they do in your own family and one brother cannot just take the ball and go home so-to-speak.

    I think it might wise to consult some lawyers in private and explain the situation and see what they suggest as a best course of action. Obviously, it is in your interest to come to some resolution without the need to go to court, but there is really not much anyone here can offer that will help without knowing more.

    Most of us here, including myself, offer a free phone consult.

    Best regards,
    Frank
    Natoli-Lapin, LLC
    (see Disclaimer)

    The law firm of Natoli-Lapin, LLC (Home of Lantern Legal Services) offers our flat-rate legal services in the... more

Related Topics

Incorporating a small business

Incorporation is the act of forming a corporation, a separate legal entity whose rights and liabilities are distinct from its shareholders.

Business

Business law covers topics such as business structures, common documents, business taxes and finances, insurance, real estate, and government regulations.

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