Waverly, TN asked in Business Law for Tennessee

Q: I am an employee/owner of an S Corp with 2 equal owners. I am the President and he is Secretary. 1. Can I fire him?

He is trying to assume control of the business since I have been out due to illness, misses 2 days a week due to Alcohol. If I fire him do I need to compensate him since he is an equal stockholder. We no longer have a buy-sell agreement due to a prior lawsuit last year. He does not want another agreement.

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1 Lawyer Answer
Leonard Robert Grefseng
Leonard Robert Grefseng
  • Columbia, TN
  • Licensed in Tennessee

A: This can't be answered in this limited question-answer format. An attorney would need to closely review the corporations' by-laws to determine how to break a "deadlock." Since you are "equal stockholders" it appears that neither of you have the legal authority to oust or exclude the other. based on the limited facts given in your question, my first impression is that you will need a Judge ( a lawsuit) to resolve it.

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