Corporate Law S Corp Minority Shareholder Rights

[twags71]

I currently own 32% of an S Corp. My partner protects the books and will not let me see them...I do believe she is stealing.

My question is what rights do I have only owning 32%. If I want to sell and she doesn't can I force the issue? If I wanted my portion of the retained earning do I have any avenue for relief?


Thanks

 

[lwpat]

Your suspicions are probably correct. As a minority shareholder you do have the right to see the books but you are in a very difficult position. There is no market for your shares so a judge will either order the company dissolved or order her to buy you out. It is also possible she is keeping two sets of books.

This can be a very involved, time consuming and expensive road. Your first step is to retanin a good business attorney and let him handle it from there. In the meantime you need to copy and document everything you can. I have been there.

 

[twags71]

Thank you very much