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  1. #1
    Join Date
    Mar 2016
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    1

    Default Can a Majority Shareholder Incorporate a New Company Without the Minority Shareholder

    My question involves business law in the state of: Minnesota

    My business partner is moving from Minnesota to Florida and has hinted he may try and incorporate the company there. We are an S-Corp in Minnesota. He owns 51% I own 49%. Can he legally do this without out my approval. According to our articles he would need a 55% vote to make any Corp. changes.

    Thanks!

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
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    98,846

    Default Re: Can a Majority Shareholder Incorporate a New Company Without the Minority Shareho

    Unless there's a contractual reason he cannot do so, he can start as many businesses as he chooses. That's not a change to the existing business.

    If he tries to transfer the business operations of the existing business to his new company, that's another matter entirely.

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