Q: A probate question involving a small, family owned C Corp - A son inherited shares, but refuses to sign Agreement.
How can there be any compliance with the terms of a mother's will, if the son refuses to sign the Shareholder Agreement, thus (officially) becoming a shareholder?
A: I'm not a Michigan lawyer, and so cannot advise on Michigan law in this regard. I assume your corporation is a Michigan corporation. Normally, however, if there was no requirement in the will that the son agree to a shareholders agreement as a condition for getting his shares, then he is entitled to his shares without the agreement. Unless Michigan law says something different, a shareholder is normally not required to enter into such an agreement once the shares are legally his. Here, it appears they are. I would definitely try to buy him out or it may be a problem to close any sale of the business. You may have some other alternatives under Michigan law and I would STRONGLY advise that you contact a Michigan small business/corporate lawyer before doing anything further.
1 user found this answer helpful
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.