Can an employee who owns 30% of the company stock force the majority stockholder to buy him out?
My father is being sued by his former manager. The manager is claiming that he never received any of the profit from the company. He received a salary but there essential no profits to split. In actuality he received more money than my father because at times my father would not take a salary. The company has never been very profitable at all. Twice my father had to secure a private loan (based on the equity from his personal home) to keep the finances of the company afloat. Can the gentlemen suing my father also be held liable for the debts incurred in the company? And if a court does decide to force my father to buy his 30% of the company, how will they evaluate the companies worth? I mean if the company is making no profit and is actually in the red then would he recieve essetnailly 30% of nothing?
It all depends on how it was written. You need to see what was agreed too. I am sure your dad had him sign something when he was given stock. Was it Phantom stock?? I am in staffing and in my business the price is based apon earnings, say 5 times earnings. There are companies out there who prices companies for a living. What kind of business is it??
Stock secured, non recourse hedge lending & loans
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Stock loan treated as sale.: An article from: Journal of Accountancy $9.95 This digital document is an article from Journal of Accountancy, published by American Institute of CPA’s on January 1, 2009. The length of the article is 779 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Stock loan treated as sa… |
